Suppose the world price is 350 and a 50 export

18. Suppose the world price is $350 and a $50 export promotion payment is paid by the U.S. government. As a result of
the export promotion policy, the U.S government must pay ______ in total export payments ( GovPay ) to firms.
a $1,000 million
b $2,000 million
c $3,000 million
d $4,000 million
e $17,500 million

Economics 100 – First Midterm Exam (A) Fall 2016
19. Suppose the world price is $350 and a $50 export payment is imposed in the United States. As a result of the export
promotion policy, the U.S. deadweight loss is ______.
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20. Suppose the world price of iPad Mini is $200. The U.S. will be producing ______, consuming ______ and
________ 21. Suppose the world price is $200. The total surplus ( TS ) for the U.S. is ______.
22. Suppose the world price is $200 and a $50 tariff is imposed by the U.S. government. As a result of the tariff, the
U.S. consumer surplus ( CS ) will ____, the producer surplus ( PS ) will _____ and the total surplus ( TS ) will ______.
a decrease, decrease, decrease
b decrease, increase, decrease
c decrease, decrease, increase
d decrease, increase, increase
e increase, increase, increase
23. Suppose the world price is $200 and a $50 tariff is imposed by the U.S. government. As a result of the tariff, the
U.S. government collects ______ in total tariff revenue ( GovRev ).
24. Trade protectionism is called a second-best outcome in that:
).
).
).
25. In the U.S. and elsewhere, tariffs, quotas, export promotion and other policies are passed by Congress despite the
deadweight losses. The theory of collective action argues that trade protectionism occurs because

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