CourseCourseConceptConceptDocsDocuments

AP Microeconomics Pol 1 B a Define Tariffs and Quotas B Explain Using Graphs Where Appropriate How Markets Are Affected By Public Policy Related to Questions

Practise using world-price graphs to measure imports or exports, compare domestic surplus, and calculate how tariffs or quotas change trade, revenue, and welfare.

Syllabus
Effective Fall 2022
Course
AP Microeconomics

Exam points

  • compare the world and autarky prices to identify an importing or exporting country
  • calculate imports or exports as the gap between domestic demand and supply at the world price
  • calculate domestic consumer surplus, producer revenue or import spending under free trade
  • explain how opening to trade redistributes CS and PS while increasing total economic surplus
  • apply a tariff to domestic price, production, consumption, imports, surplus and deadweight loss

AP Microeconomics Pol 1 B a Define Tariffs and Quotas B Explain Using Graphs Where Appropriate How Markets Are Affected By Public Policy Related to Questions question 1

[Maximum number: 3]

The graph provided shows the market for rice in the country of Rushland.

Figure for Question AP Microeconomics Pol 1 B a Define Tariffs and Quotas B Explain Using Graphs Where Appropriate How Markets Are Affected By Public Policy Related to Questions question 1 — AP Microeconomics

Question (a)

(a)

Suppose that instead of the price floor, Rushland engages in international trade and the world price of rice is $5 per bushel.

[ 3 ]

Question (i)

(i)

Will Rushland export or import rice? Explain using numbers from the graph.

[ 1 ]

Question (ii)

(ii)

Calculate the domestic consumer surplus when Rushland engages in international trade.

Show your work.

[ 1 ]

Question (iii)

(iii)

Calculate the total revenue that Rushland's farmers will earn at the world price. Show your work.

[ 1 ]
All question bank results loaded