1. Since the mid-1970s until 2017, the average U.S. tariff rate was A. between 26 percent and 35 percent. B. less than 5 percent. C. between 6 percent and 15 percent. D. between 16 percent and 25 percent. E. larger than 36 percent.

If protective import−restricting tariffs are imposed by a​ country, in the majority of cases that​ nation's producers end up   A. receiving a lower profit for the domestic good than they otherwise would.   B. producing less of the good than they otherwise would.   C. receiving a lower price for the good than they otherwise would.   D. receiving a higher price for the good than they otherwise would.

The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Spain 10 9. 8. 7 3 2 1 Da 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps consumers are indifferent between domestic and imported baseball caps. €3 and there are no import restrictions on this product. Assume that Spanish Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €2 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)

Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size, the demand for and supply of wheat in Kenya do not affect the world price. The following graph shows the domestic wheat market in Kenya. The world price of wheat is Pw=$250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer's surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producers' surplus (PS). ? PRICE (Dollars perton) 460 430 400 370 340 310 280 250 220 190 160 0 Domestic Demand 5 Domestic Supply 10 15 20 25 30 35 40 QUANTITY (Thousands of tons of wheat) 45 50 If Kenya allows international trade in the market for wheat, it will import CS Show the effects of the $30 tariff on the following graph. PS tons of wheat. Now suppose the Kenyan government decides to impose a tariff of $30 on each imported ton of wheat. After the tariff,…