The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

When does the domestic government gain the MOST revenue?

A) when it imposes a tariff B) when it imposes an import quota C) when it negotiates a voluntary export restraint D) The amount of revenue it gains is the same with a tariff and a voluntary export restraint.

Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

a. only if it allows us to obtain things that we couldn't make for ourselves. b. because it allows specialization, which increases total output. c. to us if we can gain and the others involved in the trade lose. d. in only a limited number of circumstances because others are typically self-interested.