HW 2. - Name: _ Economics 2105 Fall 2007 Homework #2...

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Name: ________________________ Economics 2105 Fall 2007 Homework #2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 13. When a country allows trade and becomes an importer of a good, a. consumer surplus and producer surplus both increase. b. consumer surplus and producer surplus both decrease. c. consumer surplus increases and producer surplus decreases. d. consumer surplus decreases and producer surplus increases. Figure 9-8 ____ 14. Refer to Figure 9-8 . Consumer surplus in this market after trade is a. A. b. A + B. c. A + B + D. d. C. ____ 15. Refer to Figure 9-8 . Producer surplus in this market before trade is a. A. b. A + B. c. B + C + D. d. C.
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Figure 9-14 ____ 16. Refer to Figure 9-14 . With the tariff, the domestic price and domestic quantity demanded are a. P 1 and Q 1 . b. P 1 and Q 4 . c. P 2 and Q 2 . d. P 2 and Q 3 . ____ 17. Refer to Figure 9-14 . Producer surplus with the tariff is a. G. b. C + G. c. A + C + G. d. A + B + C + G. ____ 18. Refer to Figure 9-14 . The amount of government revenue created by the tariff is a. B. b. E. c. D + F. d. B + D + E + F. ____ 19. Several arguments for restricting trade have been advanced. Those arguments do not include a. the jobs argument. b. the protection-as-a-bargaining-chip argument. c. the no-deadweight-loss argument. d. the infant-industry argument. ____ 20. What do tariffs and quotas, with respect to international trade, have in common? a. decrease consumer surplus b. increase producer surplus c. increase the price of the good d. all of the above
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____ 21. Gross domestic product serves as a measure of two things: a. the total spending of everyone in the economy and the total saving of everyone in the economy. b.
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This note was uploaded on 04/24/2009 for the course ECON 2105h taught by Professor Staff during the Spring '08 term at UGA.

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HW 2. - Name: _ Economics 2105 Fall 2007 Homework #2...

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