The tariff will decrease producer surplus but increase consumer surplus. increase producer surplus but decrease consumer surplus. increase both producer and consumer surplus. decrease both producer and consumer surplus.

A tariff is usually considered to be better than a quota because quotas hurt domestic producers; tariffs hurt foreign producers. tariffs produce tax revenue. tariffs help domestic producers more than quotas. quotas are inflexible. it does not distort trade as much.

Problem 5. a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff? Estimate the value of imports with tariff c) Estimate Imports without tariff b) d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition. Price of rice P = PhP 73.75| Pw = PhP 70.00| C A D 0 25 50 B E F Domestic supply ↑ Tariff Domestic demand 100 125 World price Quanti of rice

Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good?    a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports.   b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade.   b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade.   c) Some domestic suppliers will lose surplus while others will gain surplus.     Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.

A country imposing a tariff can benefit in terms of social welfare if  The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. The tariff revenue exceeds the sum of production and consumption distortion loss. The consumer surplus loss is less than the producer surplus gain. The terms-of-trade benefit exceeds the consumer surplus loss.

When a country becomes an exporter of a good, domestic consumer surplus. and domestic producer surplus (a) increases; increases (b) decreases; decreases (c) increases; decreases (d) decreases; increases

The aim of a tariff is to: (a) maximise total surplus. (b) protect domestic consumers. (c) protect domestic producers. (d) create deadweight loss.

One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff     decreases the domestic price     increases the quantity of imports     decreases the quality of imports     raises tax revenue

1) The loss of consumer benefits when a tariff imposed on imported consumer good is called: a) Consumer surplus b) Net-welfare gain c) Consumer deadweight cost d) Producer deadweight cost 2) Which one is not true about countries of the world? a) Only large countries involve in an international trade b) Openness of countries to international trade vary between countries c) Countries produce, exchange, and consume goods and services d) Economic development of countries is little affected by the extent of their engagement in international trade e) a and d

1. a) An import tariff will government revenue, and producer surplus, overall domestic national welfare. A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease b) An export subsidy will government revenue, and C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on consumer surplus,, producer surplus, overall domestic national welfare. A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease consumer surplus, C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on c) An import quota will government revenue, and A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no…