Set 1

  1. In the US ____ gain from trade
    buyers
  2. In Ecuador, ____ gain from trade
    sellers
  3. As a​ whole, does the United States or Ecuador benefit from​ trade?
    Both countries benefit from trade.
  4. With an import​ tariff _____ domestic production from
    increase q1 to q2
  5. Domestic consumption ___ from
    decrease from q3 to q4
  6. ​Intuitively, why is A part of the deadweight loss from this​ tariff?
    The incremental cost of domestically producing the additional output increases by area A.
  7. ​Intuitively, why is B part of the deadweight loss from this​ tariff?
    Consumers purchase fewer units of the good and lose surplus of area B as a result.
  8. When the tariff is​ eliminated, the quantity supplied by domestic producers
    decreases
  9. When the tariff is​ eliminated, the quantity demanded by domestic consumers
    increases
  10. When the tariff is​ eliminated, what is the impact on domestic​ producers, foreign​ producers, and domestic​ consumers?
    Foreign producers and domestic consumers win. Domestic producers lose.
  11. Which of the following is not an​ externality?
    Jordan has lung cancer from smoking cigarettes.
Author
dwrght16
ID
330201
Card Set
Set 1
Description
exam 3
Updated