QUESTION 15 1 pointsSave Answer This figure shows the market for computer monito

Question

QUESTION 15 1 pointsSave Answer This figure shows the market for computer monitors in the United States. In this market, a quota is in place that strictly limits the number of computer monitors that may be imported by foreign producers. As shown in the graph, the quota is equal to Q QD2. Which areas of the graph (when put together) make up total deadweight loss due to the quota? Price Po $140 $120 $100 Import qusta Quantity monitors) (compu lick to view larger ima .AB QUESTION 16 What is a benefit of international trade? O a.protection of native infant industries O b.national security 1 pointsSave Answer c. reduction in unemployment for certain industries O d.higher standards of living

Explanation / Answer

Ans)

15.
a. A+B
The area shown in yellow ie the two triangles of A and B are the deadweightloss in the given graph.

16.
d. higher standards of living
The benefits of international trade include enhancing competition,higher variety of goods and services,new technology as well as higher standard of living.

17.
c. domestic producers are indifferent between an equivalent tariff or quota being imposed
This is because both tariff and quota benefit the domestic producers.

18.
d. national defense
Certain goods which even if have lower production costs above should not be produced outside country.

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