A) If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt? B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?

Is it good or bad for American consumers when the United states puts tariffs on imports?

3. Two areas, Europe and America, can produce only goods A and B, under constant costs as indicated below. What will be the result of free trade between the two areas? In Europe In America 1 unit of good A 2 hours of labor 3 hours of labor 1 unit of good B 4 hours of labor 5 hours of labor a. Europe will export A and B to America. b. Europe will import A and export B. c. Europe will import B and export A. d. Europe will import A and B from America. e. No trade will take place.

President Trump increased tariffs on some goods from China. China retaliated by increasing tariffs on some U.S. goods. If free trade is the ideal, what was President Trump’s goal when increasing tariffs? Do you think this was an effective strategy? Why or why not?

A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T- shirt and domestic production rises to 15 million T-shirts per year. The quota on T- shirts causes domestic consumers to A) gain $7 million. B) lose $7 million. C) lose $70 million. D) lose $77 million

Economists argue for free trade in import markets because importing goods decreases total surplus. no one is made worse off by importing goods. all consumers and producers benefit from importing goods. O the gains to the U.S. producers outweigh the losses to the U.S. consumers the gains to the U.S. consumers outweigh the losses to the U.S. producers

Home Demand: 90 - 2Pt Foreign Demand: 50 - 4Pt*Home Supply: 30 + 2Pt Foreign Supply: 10 + 2Pt* There are demand and supply functions for good corn for the home country and demand and supply functions for good wheat for the foreign country. Home country as an importer and foreign country as an exporter trade with each other, at zero cost of transportation.A. Find and graph the equilibrium under free trade. What is the world price and thevolume of trade? Also, in the absence of trade, what are the prices that would prevailin home country for corn and in foreign country for wheat?.(Pt = Pt* = Pw -> Pw; world prices)B. Suppose home imposes a specific tariff of 5 on corn imports. Find and graph theeffects of tariff on price of corn in each country, on the quantity of corn supplied anddemanded in each country, on volume of trade? And briefly explain these results inrelation to the effects of the tariff?C. Let the tariff conditions in section (b) be valid. Determine and graph the effect of…

On the following graph, use the green point (triangle symbol) to shade consumer surplus in the Denmark after China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus. Market for Clothing in Denmark Domestic Supply Domestic Demand Consumer Surplus Producer Surplůs New World Price Quantity of Clothing v the Overall, exporting countries the fall in the world price of clothing, and importing countries price change. Price of Clothing

Some economists say the cost of international trade is the loss of American jobs. Do you think this is true? Explain.

Tariffs can help or hurt the economy explain the Hawley-Smoot Act with this in mind.