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    Macroeconomics Study Set 35
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    Exam 7: Comparative Advantage and the Gains From International Trade
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    Figure 7-2 Suppose the U
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Figure 7-2 Suppose the U

Question 28

Question 28

Multiple Choice

Figure 7-2 Figure 7-2   Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff. -Refer to Figure 7-2.With the tariff in place,the United States produces A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee. Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff.
-Refer to Figure 7-2.With the tariff in place,the United States produces


A) 18 million pounds of coffee.
B) 20 million pounds of coffee.
C) 26 million pounds of coffee.
D) 38 million pounds of coffee.

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