Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 9, Problem 3QCMC
To determine
The impact of international trade converting a country to importer.
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Economics
When a new tariff is placed on imported furniture,
which of the following is expected to happen in
the domestic market for furniture, all else being
equal?
a.Consumer surplus and producer surplus both
increase.
b.Consumer surplus decreases and producer
surplus increases.
c.Consumer surplus and producer surplus both
decrease.
d.Consumer surplus increases and producer
surplus decreases.
A country moves from a situation of no trade to a situation where it imports a good. Which of the following does not occur in the market for this good in the importing country?
A. Deadweight loss decreases.
B. Total surplus increases.
C. Consumer surplus increases.
D. Producer surplus decreases.
E. Workers in the domestic industry lose.
During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. How is the gain from imports distributed between consumers and domestic producers?
A. U.S. producer surplus shrinks.
B. U.S. consumer surplus increases.
C. Total U.S. surplus increases.
D. All the above answers are correct.
Chapter 9 Solutions
Essentials of Economics (MindTap Course List)
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