A tax on imports that is stipulated

11. Referring to Figure 8.1, the imposition of a tariff on shoes caused economic welfare in the U.S.to __________ by an amount measured by area __________.

a. Fall; c

b. Fall; (b+d)

c. Fall; (b+c+d)

d. Rise; (a+c)

12. Referring to Figure 8.1, what area measures the production effect of the tariff on shoes?

a. a

b. b

c. c

d. d

13. Referring to Figure 8.1, what area measures the consumption effect of the tariff on shoes?

a. a

b. b

c. c

d. d

Figure 8.2: The U.S. Market for Computers

Price

$2,400

$2,000

 

14. Referring to Figure 8.2, under free-trade the U.S. imported __________ computers, but after imposing a tariff the U.S. imported __________ computers.

a. 100,000; 70,000

b. 70,000; 100,000

c. 200,000; 190,000

d. 90,000; 100,000

15. Referring to Figure 8.2, the imposition of a tariff on computers caused producer surplus to __________ by __________.

a. Rise; 20,000 computers

b. Rise; $44,000

c. Rise; $44 million

d. Fall; $48 million

16. Referring to Figure 8.2, the imposition of a tariff on computers caused consumer surplus to __________ by __________.

a. Fall; 10,000 computers

b. Fall; $40,000

c. Rise; $76 million

d. Fall; $78 million

17. Referring to Figure 8.2, how much revenue will the U.S. government collect as a result of the tariff on computers?

a. $400,000

b. $40 million

c. $28 million

d. $76 million

18. Referring to Figure 8.2, the imposition of a tariff on computers caused economic welfare in theU.S. to __________ by __________.

a. Fall; 30,000 computers

b. Fall; $6 million

c. Rise; $34 million

d. Fall; $34 million

19. Referring to Figure 8.2, what is the production effect of the tariff on computers?

a. $48 million.

b. $4 million.

c. $28 million.

d. $44 million.

20. Referring to Figure 8.2, what is the consumption effect of the tariff on computers?

a. $2 million.

b. $4 million.

c. $76 million.

d. $78 million.