.

(02.09 LC)

Which of the following groups would benefit most from an import quota? (4 points)

The government

Domestic suppliers

Domestic consumers

Foreign suppliers

No one benefits from import quotas

2.

(02.09 LC)

If the average global price for a good is lower than the domestic equilibrium price, domestic consumer surplus will _____ and domestic producer surplus will ______. (4 points)

increase; decrease

increase; increase

decrease; decrease

decrease; increase

increase; be indeterminate

3.

(02.09 LC)

Which of the following could increase domestic production of a good for which consumption is partially based on imports? (4 points)

The removal of an import quota

An increase in the domestic cost of production

The introduction of an import tariff

A significant increase to an existing import quota

A decrease in the average global price for the good

4.

(02.09 LC)

Mercuria is a producer and an importer of steel. What will happen if Mercuria's government imposes an import tariff on steel that is above the world price? (4 points)

There will be an increase in consumer surplus for domestic consumers.

There will be an increase in imports.

The domestic consumption of steel will increase.

There will be an increase in domestic producer surplus.

There will be no deadweight loss.

5.

(02.09 LC)

Which of the following would happen for an imported good if an import quota is imposed? (4 points)

An increase in domestic consumer surplus

A decrease in the equilibrium price

An increase in domestic production

A decrease in domestic production

An increase in total economic surplus

6.

(02.09 LC) (4 points)

The graph shows a market for a good traded internationally with an import tariff, A. The world price is B. Which of the following describes the quantity of imports with the tariff?

6. (02.09 LC) (4 points) Price Supply D G K E C Demand F Q Q2 Quantity The graph shows a market for a good traded internationally with an import tariff, A. The world price is B. Which of the following describes the quantity of imports with the tariff