ECO 336 CHAPTER 6 EXAM 2025 QUESTIONS AND ANSWERS

ECO 336 CHAPTER 6 EXAM 2025
QUESTIONS AND ANSWERS


In a small country, the net national cost of tariff protection is equal to the reduction in
consumer surplus minus A.
the efficiency loss and the consumption side loss.
B.

the increase in government revenue and the increase in producer surplus.
C.
the increase in government revenue.
D.
the increase in producer surplus.


Consumer surplus is equal to the area A.
under the demand curve and above the supply curve.
B.

under the demand curve and above the price line.
C.
under the supply curve.
D.
under the demand curve.
E.
above the supply curve and below the price line.



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, Producer surplus is equal to the area A.
under the supply curve.
B.
under the demand curve and above the supply curve.
C.
under the demand curve and above the price line.
D.
above the supply curve and below the price line.




Tariffs reallocate income from A.
consumers to foreigners.
B.

consumers to producers.
C.
government to producers.
D.
producers to consumers.


The production side efficiency loss of a tariff is caused by A.
the contraction of domestic consumption.
B.

the expansion of relative inefficient domestic production.
C.
higher profits gained by foreign producers.
D.
the increase in government revenue.

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