Reference no: EM132349969

Assignment: Chapter 9: In this chapter on international trade we explained the benefits of trade using the concepts of producer and consumer surplus. We know that trade barriers such as quotas and tariffs cause prices to rise, which reduces consumer surplus, but we also discussed that trade barriers save or create jobs for American workers. In a writing of no more than two pages, please:

1. identify an imported product that you purchased recently, and estimate the amount of consumer surplus you received from your purchase.

2. state how much, if any, of your consumer surplus you would be willing to give up if it meant another job could be saved for an American worker.

3. determine, if you knew that the job saved for the American worker came at the expense of a job for someone in a third-world country, if that would change the amount of consumer surplus (in dollars) you would be willing to give up.

4. determine, if you knew the surplus you gave up went directly to increase the wage of a worker in a third-world country, if that would change the amount of surplus you would give up.

5. state whether or not you would change the purchase, and the associated consumer surplus you received, in any way to redistribute the gains you personally received from international trade. If you would have been willing to give up some of the surplus you received if it went directly to the worker in the third world country, would you consider making a donation to a charitable organization benefiting workers that country (this is a way for you to give some of your surplus to the workers)? Why or why not?