Maddy

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


 * 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.

When a domestic market enters the world market, the consumer surplus, producer surplus, and total surplus all shift because entering the world market is where many domestic markets compete. Let's say that the iPod in France was doing well with overall sales of the iPods they make in their country. (Con. sur up and Prod. sur up). If France started to export iPods to other places like the US or Japan, then con. surplus would go up, producer sur. goes down, and total sur. moves to the right. People who could make their own iPods in their own country would buy it because they can make it better than the imported one and plus, the imported good would cost more.


 * 1) 2 Using a table and graph show the changes in efficiency that occur when the government imposes a tariff or quota on a good domestically.

If the gov. put a tariff or quota on a good domestically that will make people want to consider buying more good that come from somewhere else. There will be competition with other companies and business that make that same product. The one with the tax imposed upon it will have less con. sur. The gov does this to regulate and control the efficiency.

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 * 1) 3 How what is the differences and similarities between tariffs and quotas?

Tariffs are also known as taxes and quota are the