Question

56) In 2008, Agriculture Secretary Ed Schafer announced that Chile's Livestock and Agricultural Service approved the U.S. inspection, control, and certification systems for poultry, allowing these products to enter the Chilean market. The effect of this change in Chilean policy in the Chilean poultry market is to:

a) have no effect in the Chilean poultry market

b) increase Chilean consumer surplus

c) decrease Chilean total surplus

d) increase Chilean producer surplus

58) When the United States imposes an import quota on a good, the amount of the _____________ in U.S. consumer surplus is __________ the amount of the _______________ in U.S. producer surplus.

a) increase; smaller than; increase

b) decrease; larger than; increase

c) decrease; equal to; increase

d) decrease; larger than; decrease

Answer 1

1 B is right because consumers are able to purchase usa products at lower price

2 again B is right. Import controls reduce usually consumer surplus more than increase in usa producer surplus as there is net deadweight loss