Mr. Clifford explains key economic concepts focusing on quotas and tariffs. The video covers demand and supply, consumer and producer surplus, and the effects of international trade. It discusses how tariffs and quotas impact consumer and producer surplus, and the net gain from trade. The video also highlights who benefits and who loses from international trade, emphasizing the role of government interventions like tariffs and quotas.

What is the equilibrium price for a crate of boiled peanuts if produced domestically?

• $100

• $20

• $70

• $50

How does consumer surplus change after international trade?

• It decreases

• It increases

• It remains the same

• It becomes zero

What is the net gain from trade when international trade is introduced?

• D and E

• C and D

• A and B

• B and E

What happens to consumer surplus when a $5 tariff is imposed?

• It increases

• It decreases

• It remains unchanged

• It doubles

How does a $5 tariff affect producer surplus?

• It increases

• It becomes zero

• It decreases

• It remains the same

What is the main difference between a tariff and a quota?

• A tariff generates revenue, a quota does not

• A quota generates revenue, a tariff does not

• Both generate revenue

• Neither generates revenue

What is the effect of a quota on consumer surplus?

• It remains the same

• It decreases

• It increases

• It becomes zero