Refer to the graph below. If the country shown does not engage in trade, consumer surplus is area P Domestic S B C World P D Oc OB OA OD OA+B+C Domestic D o (tons of steel) 13

Do the rules of international trade require that all nations impose the same consumer safety standards?

The country of Pepperland exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table 34.6 and Table 34.7. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell? What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell? Sketch two supply and demand diagrams, one for each country, in the situation before trade. On those diagrams, show the equilibrium price and the levels of exports and imports in the world after trade. If the Land of Submarines imposes an anti- dumping import quota of 30, explain in general terms whether it will benefit or injure consumers and producers in each country. Does your general answer change if the Land of Submarines imposes an import quota of 70?

Are the gains from international trade more likely to be relatively more important to large or small countries?

The graph to the right shows the market for water bottles in Thirsty-country with free trade (S1), with tariffs (S2), and with domestic firms only (S3). Shade in the area to show the amount of the tariff collected. Drund irgok: 15 Tritf6-45-15 f 15x (205) Quanty thousand

Consider the effects of an import tariff in a small coutnry using the graph below. Domestic Supply Pw +t P Domestic Demand 40 45 75 95 105 Which area on the graph corresponds to consumption loss? What is domestic consumption with free trade? O W O Y

Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. ecause this country exports steel, the world price is represented by    .   Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is   per ton, and the price received by domestic producers is   per ton. The quantity of steel consumed by domestic consumers    , the quantity of steel produced by domestic producers    , and the quantity of steel exported    .   True or False: With the export subsidy, domestic producers will sell steel to domestic consumers and sell the rest abroad. True   False     Under the export subsidy, consumer surplus is   and producer surplus is   . Government revenue    by (increases or Decreases)   . As a…

Price (dollars per battery) 20 18 16 14 12 10 8 0 A Sus World price + tariff World price Dus 100 300 500 700 900 1,100 1,300 Quantity (thousands of batteries) The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to and the price U.S. consumers pay compared to the price paid when there was free trade.

Based on this graph, total surplus in the absence of international trade is?

The following diagram is for the lamp market in a small country. Under free trade, the world price of lamp is $13/1lamp. Under import tariff $2/lamp, the domestic price of lamp in the small country is $15/lamp. Price Supply S15 S13 Demand Quantity 10.000 12.000 32,000 50,000 Refer to the figure above. Domestic producer surplus would increase by because of the tariff. Select one: Oa. $55,000 O b. S5,000 OC $22.000 Od. $10,000