Question : 18.4   Chapter Figures The figure above shows the U.S. market for : 1238269

18.4   Chapter Figures

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of a T-shirt is $5.

1) In the figure above, with international trade U.S. consumers buy ________ million T-shirts per year at ________ per T-shirt.

A) 60; $5

B) 40; $8

C) 20; $5

D) 40; $5

E) 60; $11

2) Based on the figure above, as a result of international trade, U.S. domestic production ________ million T-shirts per year.

A) decreases by 20

B) increases by 20

C) decreases by 10

D) increases by 40

E) increases by 10

3) In the figure above, with international trade the United States ________ million T-shirts per year.

A) imports 40

B) exports 40

C) exports 20

D) imports 20

E) imports 60

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.

4) Based on the figure above, as a result of international trade, U.S. domestic production ________ airplanes per year.

A) decreases by 200

B) increases by 300

C) decreases by 100

D) increases by 500

E) increases by 200

5) In the figure above, U.S. consumers buy ________ airplanes per year at ________ million per airplane.

A) 200; $150

B) 400; $100

C) 700; $150

D) 400; $150

E) 200; $100

6) In the figure above, the United States ________ airplanes per year.

A) imports 500

B) exports 500

C) exports 400

D) imports 400

E) exports 200

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5.  The U.S. government imposes a $2 per unit tariff on imported T-shirts.

7) The figure above shows that as a result of the tariff, the price of a T-shirt in the United States ________, and the quantity of T-shirts bought ________.

A) rises by $2; decreases by 15 million per year

B) rises by $2; increases by 15 million per year

C) falls by $2; increases by 5 million per year

D) does not change; decreases by 5 million per year

E) does not change; does not change

8) The figure above shows that as a result of the tariff, the quantity of T-shirts produced in the United States ________, and the quantity of T-shirts imported ________.

A) increases by 15 million per year; decreases by 30 million per year

B) increases by 15 million per year; increases by 15 million per year

C) decreases by 15 million per year; decreases by 30 million per year

D) decreases by 30 million per year; increases by 30 million per year

E) does not change; decreases by 15 million per year

9) The figure above shows that the government revenue from the tariff is

A) $20 million per year.

B) $30 million per year.

C) $15 million per year.

D) $55 million per year.

E) zero.