Question 1

Using the graph,assume that the government imposes a $1 tariff on hammers.Answer the following questions given this information.
  
a.What is the domestic price and quantity demanded of hammers after the tariff is imposed?
b.What is the quantity of hammers imported before the tariff?
c.What is the quantity of hammers imported after the tariff?
d.What would be the amount of consumer surplus before the tariff?
e.What would be the amount of consumer surplus after the tariff?
f.What would be the amount of producer surplus before the tariff?
g.What would be the amount of producer surplus after the tariff?
h.What would be the amount of government revenue because of the tariff?
i.What would be the total amount of deadweight loss due to the tariff?

Accepted Answer

The answer of Using the graph,assume that the government imposes...

Question 2

Use the graph to answer the following questions about CDs.
  
a.What is the equilibrium price of CDs before trade?
b.What is the equilibrium quantity of CDs before trade?
c.What is the price of CDs after trade is allowed?
d.What is the quantity of CDs exported after trade is allowed?
e.What is the amount of consumer surplus before trade?
f.What is the amount of consumer surplus after trade?
g.What is the amount of producer surplus before trade?
h.What is the amount of producer surplus after trade?
i.What is the amount of total surplus before trade?
j.What is the amount of total surplus after trade?
k.What is the change in total surplus because of trade?

Accepted Answer

The answer of Use the graph to answer the following...

Question 3

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

Accepted Answer

The 2008 Los Angeles Times poll actually found that a significant majority of Americans believed that free international trade was bad for the American economy, reflecting concerns about job losses and the impact on domestic industries.

Question 4

Characterize the two different approaches a nation can take to achieve free trade.Does one approach have an advantage over the other?

Accepted Answer

The answer of Characterize the two different approaches a nation...

Question 5

How does an import quota differ from an equivalent tariff?

Accepted Answer

The answer of How does an import quota differ from...

Question 6

What are the arguments in favor of trade restrictions,and what are the counterarguments? According to most economists,do any of these arguments really justify trade restrictions? Explain.

Accepted Answer

The answer of What are the arguments in favor of...

Question 7

Economists view free trade as a way to raise living standards both at home and abroad.

Accepted Answer

Economists generally support the idea of free trade because it allows countries to specialize in the production of goods and services they are comparatively better at, resulting in increased efficiency and lower costs. This, in turn, can lead to higher living standards both domestically and in partner countries.

Question 8

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Accepted Answer

According to the information given in the statement, the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Question 9

Most economists view the United States as an ongoing experiment that raises serious doubts about the virtues of free trade.

Accepted Answer

This statement is not accurate as the majority of economists support the idea of free trade and see it as beneficial for economic growth and efficiency. While there may be debates and discussions about the specific policies or impacts of free trade, it is not viewed as an experiment that raises serious doubts about its virtues.

Question 10

Using the graph below,answer the following questions about hammers.
  
a.What is the equilibrium price of hammers before trade?
b.What is the equilibrium quantity of hammers before trade?
c.What is the price of hammers after trade is allowed?
d.What is the quantity of hammers imported after trade is allowed?
e.What is the amount of consumer surplus before trade?
f.What is the amount of consumer surplus after trade?
g.What is the amount of producer surplus before trade?
h.What is the amount of producer surplus after trade?
i.What is the amount of total surplus before trade?
j.What is the amount of total surplus after trade?
k.What is the change in total surplus because of trade?

Accepted Answer

The answer of Using the graph below,answer the following questions...

Quiz 9: Application: International Trade.