Microeconomics Trade and Tariff Quiz

What is the quantity of sugar that the country will import when the world price is $2?

• 16 units

• 14 units

• 12 units

• 2 units

How does a tariff affect the world price and domestic output?

• It decreases the world price and increases domestic output.

• It increases the world price and decreases domestic output.

• It increases the world price and increases domestic output.

• It decreases the world price and decreases domestic output.

What is the formula used to calculate consumer surplus in this context?

• 1/2 base times height

• Base times height

• Base plus height

• 1/2 base plus height

How much is the tariff per unit if the world price increases from $2 to $4?

• $4

• $3

• $2

• $1

What should the government do to maximize total surplus?

• Impose a $2 tariff

• Impose a $4 tariff

• Impose no tariff

• Impose a $1 tariff