Question 1

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

Accepted Answer

The answer of 
-The above figure shows the U.S.market for...

Question 2

-Which type of policy raises the most revenue for the government?

Accepted Answer

Tariffs are taxes on imported goods, and they generate revenue for the government. Therefore, tariffs are the type of policy that raises the most revenue for the government. Quotas and voluntary export restraints do not generate revenue for the government.

Question 3

The imposition of a quota ________ domestic production, ________ imports, and ________ domestic purchases.

Accepted Answer

Quotas limit the amount of goods that can be imported, which encourages domestic production (increases it), reduces the volume of imports (decreases them), and as a result, may decrease domestic purchases since fewer imported goods might lead to higher prices or less choice, discouraging consumption.

Question 4

-Of the following, who gains from a tariff?

Accepted Answer

The government of the importing country gains from a tariff because it collects the tariff as a form of tax revenue on imported goods.

Question 5

-A quota is a

Accepted Answer

A quota is a quantitative restriction on an import imposed by the importing country. It limits the quantity of a particular good that can be imported into a country, regardless of its price. The purpose of a quota is to protect domestic industries and suppliers from foreign competition by limiting the supply of imported goods.

Question 6

-The above figure shows the U.S.market for replacement cell phone batteries.Area B + area D is the

Accepted Answer

The answer of 
-The above figure shows the U.S.market for...

Question 7

If a quota is imposed on imports of shrimp into the United States, U.S.consumer surplus from shrimp will ________ and U.S.producer surplus from shrimp will ________.

Accepted Answer

When a quota is imposed on imports of shrimp into the United States, the supply of shrimp in the U.S. market will decrease, leading to an increase in the price of shrimp. As a result, U.S. consumer surplus will decrease because consumers will have to pay a higher price for shrimp. On the other hand, U.S. producer surplus will increase because domestic shrimp producers will face less competition from foreign producers, allowing them to charge a higher price for their shrimp. Therefore, the correct answer is (C) decrease; increase.

Question 8

-The difference between a tariff and a quota is that the revenue from the tariff goes to the

Accepted Answer

Tariffs are taxes on imported goods, and the revenue generated from them goes to the government of the country that implemented the tariff. Quotas, on the other hand, limit the quantity of imported goods, but they do not generate revenue for the government. Instead, quotas often result in higher prices for consumers and increased profits for domestic producers.

Question 9

-Of the following, who gains with a tariff?

Accepted Answer

A tariff is a tax imposed on imported goods, which increases the price of the goods for domestic consumers. Since the imported goods are now more expensive, domestic buyers have to pay a higher price, which means they lose. The importer of the good or service also loses due to the increased cost of importing. The foreign exporter of the good or service also loses since their sales in the importing country decrease. The government of the importing nation is the one that gains from the tariff since they receive revenue from the tax on imports. The government of the exporting nation does not benefit from the tariff.

Question 10

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

Accepted Answer

Area A + area E represents the increase in producer surplus when a tariff is imposed. This is because the tariff increases the price of imported goods, allowing domestic producers to raise their prices and earn more on each unit sold.

Question 11

-If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

Accepted Answer

The U.S. government gains revenue from the tariff, which is essentially a tax on the imported steel. The other options listed may actually be negatively impacted by the tariff. U.S. steel consumers may see higher prices due to reduced competition, U.S. importers of steel may have to pay higher costs to import steel, foreign exporters of steel may lose business to U.S. producers, and the foreign government may retaliate with their own tariffs.

Question 12

Of the following, who gains with a quota?

Accepted Answer

The answer of Of the following, who gains with a...

Question 13

-The table above gives the domestic demand and supply schedules for a good.Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff.How much will the government collect as tariff revenue?

Accepted Answer

The answer of 
-The table above gives the domestic demand...

Question 14

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States.

Accepted Answer

If a quota on salmon imported from Chile is imposed, it will limit the amount of salmon that can be imported from Chile to the United States. As a result, the supply of salmon will decline, leading to a higher salmon price in the United States. A decrease in the quantity of salmon supplied from Chile to the United States will cause an increase in the quantity shortage of the product. Since the demand is constant but the supply is restricted, the result will cause an increase in the price of salmon, leading to a decrease in the quantity of salmon demanded in the United States.

Question 15

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

Accepted Answer

The answer of 
-The above figure shows the U.S.market for...

Question 16

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

Accepted Answer

The answer of 
-The above figure shows the U.S.market for...

Question 17

-A quota is

Accepted Answer

A quota is a restriction on the quantity of goods that can be imported. It sets a maximum limit or ceiling on the amount of a particular good that can be brought into a country during a specified time period. Therefore, the correct answer is C - a specified maximum amount that can be imported.

Question 18

A specified maximum amount of the good that may be imported in a given period of time is a

Accepted Answer

A quota is a specific limit on the amount of a good that can be imported in a given time period. Quotas can be set by the government or by international agreements, and are often used to protect domestic producers by limiting foreign competition.

Question 19

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade, U.S.production is equal to ________ batteries per year.When a $2 tariff is in place, U.S.production is equal to ________ batteries per year.

Accepted Answer

With free trade, U.S. production is lower due to international competition, resulting in 100,000 batteries produced domestically. When a $2 tariff is imposed, domestic production increases to 300,000 batteries per year as the tariff makes imported batteries more expensive, encouraging consumers to buy domestically produced batteries.

Question 20

When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a

Accepted Answer

When governments specify the maximum amount of a good that may be imported in a given period of time, it is known as a quota. A quota restricts the quantity of imported goods, typically to protect domestic producers from foreign competition. This differs from a tariff, which is a tax on imported goods, and a dumping limit which is a maximum price that an importer is willing to pay for the imported good.

Quiz 9: Global Markets in Action

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

-Which type of policy raises the most revenue for the government?

The imposition of a quota domestic production, imports, and domestic purchases.

-Of the following, who gains from a tariff?

-A quota is a

-The above figure shows the U.S.market for replacement cell phone batteries.Area B + area D is the

If a quota is imposed on imports of shrimp into the United States, U.S.consumer surplus from shrimp will and U.S.producer surplus from shrimp will .

-The difference between a tariff and a quota is that the revenue from the tariff goes to the

-Of the following, who gains with a tariff?

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

-If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

Of the following, who gains with a quota?

-The table above gives the domestic demand and supply schedules for a good.Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff.How much will the government collect as tariff revenue?

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be salmon prices in the United States and in the quantity of salmon demanded in the United States.

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

-A quota is

A specified maximum amount of the good that may be imported in a given period of time is a

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade, U.S.production is equal to batteries per year.When a $2 tariff is in place, U.S.production is equal to batteries per year.

When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a