JayK

AP Microeconomics Chapter 9 Quiz Mr. Grochowski H 507 Name: Jay

-less consumer surplus because the price goes up -less producer surplus tarrifs is the reason to less p surplus -less total surplus overall c and p surplus is lower so total also has to be lower When trading without tariffs on good domestically, the individuals can produce much more than what they can make due to trade. Everyone benefits from trade. With more tariff the amount you got out outside the possible frontier is smaller than what it was before. Tariffs are the tax when they are exported, as for quotas are the tax you pay when its imported. Both of them both go to the government. They are used to regulate unfair competition over the world, because one country might be able to produce at a much lower cost.
 * 1) 1 Explain the changes in consumer, producer, and total surplus when a domestic market enters the world market and the market price is above the domestic price.
 * 1) 2 Explain show the changes in efficiency that occur when the government imposes a tariff or quota on a good domestically.
 * 1) 3 How what is the differences and similarities between tariffs and quotas?