Question 1

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market and what portion of this is supplied by imports?

Accepted Answer

According to Figure 19-3, the intersection of the domestic supply curve and the demand curve with the quota in place occurs at a quantity of 34 million pounds. At this quantity, the domestic supply curve intersects the world supply curve, indicating that the quantity demanded is also supplied by domestic production. Therefore, the quantity consumed in the domestic market is 34 million pounds, out of which 16 million pounds are supplied by imports (the difference between domestic consumption and domestic production). Therefore, the correct answer is C.

Question 2

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.Without the quota,the domestic price of peanuts equals the world price which is $2.00 per pound.What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 3

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would be imported?

Accepted Answer

The point where the world price intersects with the demand curve for the United States represents the quantity of peanuts that would be imported without the quota. This occurs at a quantity of 30 million pounds, as shown on the graph at the point where the world price line intersects with the demand curve.

Question 4

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods,effectively acting as a quota of zero imports when stimulus money was being spent.In the U.S.steel market,a "Buy American" provision in the 2009 stimulus package would

Accepted Answer

The answer of The "Buy American" provision in the 2009...

Question 5

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic producers supply?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 6

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase?

Accepted Answer

According to Figure 19-3, the point where the domestic supply curve intersects with the demand curve is at the quantity of 40 million pounds of peanuts. This represents the quantity that domestic consumers would purchase if there was no quota.

Question 7

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the area that represents revenue to foreign producers who are granted permission to sell in the U.S.market when there is a quota?

Accepted Answer

The area that represents revenue to foreign producers who are granted permission to sell in the U.S. market when there is a quota is the sum of areas I, J, K, and L.

Question 8

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity supplied by domestic producers?

Accepted Answer

From Figure 19-3, with the quota in place, the quantity supplied by domestic producers is 18 million pounds (point E).

Question 9

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the area that represents the deadweight loss as a result of the quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 10

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.Without the quota,the domestic price of peanuts equals the world price which is $2.00 per pound.What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 11

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods,effectively acting as a quota of zero imports when stimulus money was being spent.In the market for steel,the "Buy American" provision would ________ the price of steel in the United States and ________ the quantity of steel demanded in the United States.

Accepted Answer

The answer of The "Buy American" provision in the 2009...

Question 12

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would be imported?

Accepted Answer

From the graph, we can see that without the quota, the maximum amount of peanuts that would be imported is at the intersection of the world supply curve and the domestic demand curve, which is approximately 30 million pounds. Therefore, choice C is the correct answer.

Question 13

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the area of consumer surplus after the imposition of the quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 14

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the area of domestic producer surplus without a quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 15

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity supplied by domestic producers?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Question 16

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the value of domestic producer surplus without a quota?

Accepted Answer

Without a quota, the domestic market demand would be met by domestic producers' supply. The equilibrium price would be at the intersection of the demand and domestic supply curves at $625 per ton. The domestic producer surplus would be the area above the supply curve and below the equilibrium price. Calculating this area gives a value of $5 million. 
B), C), and D) cannot be the correct answer as they reflect the producer surplus with the quota in place.

Question 17

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market?

Accepted Answer

The intersection of the domestic demand curve and the supply curve with the quota limit at 34 million pounds gives us the quantity consumed in the domestic market.

Question 18

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers

Accepted Answer

With voluntary export restraints, foreign producers limit their exports to a country. They agree to voluntarily limit the quantity of their exports to a specific country to avoid the imposition of other types of trade barriers by that country. This is a way to maintain some level of access to the importing country's market without facing more severe trade restrictions.

Question 19

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the area of domestic producer surplus after the imposition of a quota?

Accepted Answer

After the imposition of the quota, the domestic producer surplus is represented by the area B in Figure 19-3. This is because the quota restricts the amount of imports, causing the domestic price to rise and allowing domestic producers to sell more at a higher price. The area B represents the excess amount that domestic producers receive above the equilibrium price, which is their surplus. Therefore, the correct choice is B.

Question 20

Figure 19-3
  
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.What is the value of consumer surplus after the imposition of the quota?

Accepted Answer

The answer of Figure 19-3
  
Since 1953 the United...

Quiz 19: Comparative Advantage, international Trade, and Exchange Rates

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market and what portion of this is supplied by imports?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would be imported?

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods,effectively acting as a quota of zero imports when stimulus money was being spent.In the U.S.steel market,a "Buy American" provision in the 2009 stimulus package would

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic producers supply?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity supplied by domestic producers?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the area that represents the deadweight loss as a result of the quota?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would be imported?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the area of consumer surplus after the imposition of the quota?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the area of domestic producer surplus without a quota?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity supplied by domestic producers?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the value of domestic producer surplus without a quota?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market?

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the area of domestic producer surplus after the imposition of a quota?

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.What is the value of consumer surplus after the imposition of the quota?