Question 1

Figure 9-4
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-4.Suppose the country imposes a $5 per unit tariff.If the country allows trade with a tariff,how much are consumer surplus,producer surplus,tariff revenue,and total surplus?

Accepted Answer

With trade and a tariff,consum...

Question 2

The nation of Falconia forbids international trade.In Falconia,you can obtain a computer by trading 3 bicycles.In other countries,you can obtain a computer by trading 5 bicycles.These facts indicate that

Accepted Answer

A)   if Falconia were to allow trade,it would export computers.
B)   Falconia has an absolute advantage,relative to other countries,in producing computers.
C)   Falconia has a comparative advantage,relative to other countries,in producing bicycles.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 3

In 2008,the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy.Of those surveyed,

Accepted Answer

A)   57 percent said free international trade helped the economy.
B)   26 percent said free international trade helped the economy.
C)   30 percent said free international trade hurt the economy.
D)   16 percent said free international trade hurt the economy.E) B) and C)
F) None of the above

Question 4

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Accepted Answer

A)   producer surplus will be smaller than it would be if Isoland banned trade.
B)   consumer surplus will be smaller than it would be if Isoland banned trade.
C)   the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied.
D)   Isoland will be an importer of peaches.E) B) and D)
F) A) and C)

Question 5

When a country that imports a particular good imposes a tariff on that good,

Accepted Answer

A)   consumer surplus increases and total surplus increases in the market for that good.
B)   consumer surplus increases and total surplus decreases in the market for that good.
C)   consumer surplus decreases and total surplus increases in the market for that good.
D)   consumer surplus decreases and total surplus decreases in the market for that good.E) All of the above
F) C) and D)

Question 6

Figure 9-13 
-Refer to Figure 9-13.The price and domestic quantity demanded after trade are

Accepted Answer

A)   $8 and 300.
B)   $8 and 900.
C)   $14 and 900.
D)   $14 and 600.E) A) and B)
F) A) and C)

Question 7

When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,

Accepted Answer

A)   consumer surplus increases and total surplus increases in the market for that good.
B)   consumer surplus increases and total surplus decreases in the market for that good.
C)   consumer surplus decreases and total surplus increases in the market for that good.
D)   consumer surplus decreases and total surplus decreases in the market for that good.E) None of the above
F) A) and B)

Question 8

Figure 9-13 
-Refer to Figure 9-13.With trade,domestic production and domestic consumption,respectively,are

Accepted Answer

A)   600 and 600.
B)   600 and 300.
C)   300 and 900.
D)   600 and 900.E) None of the above
F) B) and C)

Question 9

When a country allows international trade and becomes an exporter of a good,

Accepted Answer

A)   domestic producers of the good become better off.
B)   domestic consumers of the good become worse off.
C)   the gains of the winners exceed the losses of the losers.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 10

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1.When trade is allowed,

Accepted Answer

A)   Scotland producers of wool become better off and Scotland consumers of wool become worse off.
B)   Scotland consumers of wool become better off and Scotland producers of wool become worse off.
C)   both Scotland producers and consumers of wool become better off.
D)   both Scotland producers and consumers of wool become worse off.E) A) and D)
F) All of the above

Question 11

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of a particular good,

Accepted Answer

A)   consumer surplus increases and total surplus increases in the market for that good.
B)   consumer surplus increases and total surplus decreases in the market for that good.
C)   consumer surplus decreases and total surplus increases in the market for that good.
D)   consumer surplus decreases and total surplus decreases in the market for that good.E) All of the above
F) None of the above

Question 12

Figure 9-10.The figure applies to Mexico and the good is rifles. 0,P0) , (Q2,P1) ,and (Q1,P1) represents A)  Mexico's gains from trade. B)  the amount by which Mexico's gain in producer surplus exceeds its loss in consumer surplus due to trade. C)  Mexico's loss in total surplus due to trade. D)  All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-10.The area bounded by the points (Q0,P0) , (Q2,P1) ,and (Q1,P1) represents

Accepted Answer

A)   Mexico's gains from trade.
B)   the amount by which Mexico's gain in producer surplus exceeds its loss in consumer surplus due to trade.
C)   Mexico's loss in total surplus due to trade.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 13

Figure 9-13 
-Refer to Figure 9-13.With trade,producer surplus is

Accepted Answer

A)   $900.
B)   $1,100.
C)   $1,500.
D)   $2,000.E) None of the above
F) All of the above

Question 14

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off and sellers of shoes in that country become better off.

Accepted Answer

A) True 
 B)False

Question 15

The principle of comparative advantage asserts that

Accepted Answer

A)   not all countries can benefit from trade with other countries.
B)   the world price of a good will prevail in all countries,regardless of whether those countries allow international trade in that good.
C)   countries can become better off by exporting goods,but they cannot become better off by importing goods.
D)   countries can become better off by specializing in what they do best.E) None of the above
F) A) and C)

Question 16

For Country A,the world price of textiles exceeds the domestic equilibrium price of textiles.As a result,international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience.

Accepted Answer

A) True 
 B)False

Question 17

Figure 9-11 
-Refer to Figure 9-11.Consumer surplus in this market before trade is

Accepted Answer

A)   A.
B)   B + C.
C)   A + B + D.
D)   C.E) None of the above
F) B) and C)

Question 18

Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.

Accepted Answer

A) True 
 B)False

Question 19

Scenario 9-2
For a small country called Boxland,the equation of the domestic demand curve for cardboard is  ,
where  represents the domestic quantity of cardboard demanded,in tons,and  represents the price of a ton of cardboard.
For Boxland,the equation of the domestic supply curve for cardboard is  ,
where  represents the domestic quantity of cardboard supplied,in tons,and  again represents the price of a ton of cardboard.
-Refer to Scenario 9-2.Suppose the world price of cardboard is $60 and international trade is allowed.Then Boxland's consumers demand

Accepted Answer

A)   110 tons of cardboard and Boxland's producers supply 120 tons of cardboard.
B)   96 tons of cardboard and Boxland's producers supply 96 tons of cardboard.
C)   96 tons of cardboard and Boxland's producers supply 115 tons of cardboard.
D)   80 tons of cardboard and Boxland's producers supply 120 tons of cardboard.E) A) and B)
F) All of the above

Question 20

When a country allows trade and becomes an importer of a good,

Accepted Answer

A)   consumer surplus and producer surplus both increase.
B)   consumer surplus and producer surplus both decrease.
C)   consumer surplus increases and producer surplus decreases.
D)   consumer surplus decreases and producer surplus increases.E) None of the above
F) All of the above

Exam 9: Application: International Trade

For Country A,the world price of textiles exceeds the domestic equilibrium price of textiles.As a result,international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience.

Correct Answer
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When a country allows international trade and becomes an exporter of a good,

Correct Answer
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In 2008,the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy.Of those surveyed,

Correct Answer
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When a country allows trade and becomes an importer of a good,

Correct Answer
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Figure 9-13 -Refer to Figure 9-13.With trade,domestic production and domestic consumption,respectively,are

Correct Answer
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Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Correct Answer
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When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,

Correct Answer
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Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.

Correct Answer
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Figure 9-11 -Refer to Figure 9-11.Consumer surplus in this market before trade is

Correct Answer
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The nation of Falconia forbids international trade.In Falconia,you can obtain a computer by trading 3 bicycles.In other countries,you can obtain a computer by trading 5 bicycles.These facts indicate that

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.When trade is allowed,

Correct Answer
verified

Correct Answer
verified

Figure 9-13 -Refer to Figure 9-13.The price and domestic quantity demanded after trade are

Correct Answer
verified

When a country that imports a particular good imposes a tariff on that good,

Correct Answer
verified

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off and sellers of shoes in that country become better off.

Correct Answer
verified

Correct Answer
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With trade and a tariff,consum...
View Answer

Figure 9-10.The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀) , (Q₂,P₁) ,and (Q₁,P₁) represents

Correct Answer
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The principle of comparative advantage asserts that

Correct Answer
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Figure 9-13 -Refer to Figure 9-13.With trade,producer surplus is

Correct Answer
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When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of a particular good,

Correct Answer
verified

Exam 9: Application: International Trade

For Country A,the world price of textiles exceeds the domestic equilibrium price of textiles.As a result,international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience.

Correct AnswerverifiedShow Answer

When a country allows international trade and becomes an exporter of a good,

Correct AnswerverifiedShow Answer

In 2008,the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy.Of those surveyed,

Correct AnswerverifiedShow Answer

When a country allows trade and becomes an importer of a good,

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13.With trade,domestic production and domestic consumption,respectively,are

Correct AnswerverifiedShow Answer

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Correct AnswerverifiedShow Answer

When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,

Correct AnswerverifiedShow Answer

Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.

Correct AnswerverifiedShow Answer

Figure 9-11 -Refer to Figure 9-11.Consumer surplus in this market before trade is

Correct AnswerverifiedShow Answer

The nation of Falconia forbids international trade.In Falconia,you can obtain a computer by trading 3 bicycles.In other countries,you can obtain a computer by trading 5 bicycles.These facts indicate that

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.When trade is allowed,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13.The price and domestic quantity demanded after trade are

Correct AnswerverifiedShow Answer

When a country that imports a particular good imposes a tariff on that good,

Correct AnswerverifiedShow Answer

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off and sellers of shoes in that country become better off.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade and a tariff,consum...View AnswerShow Answer

Figure 9-10.The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q0,P0) , (Q2,P1) ,and (Q1,P1) represents

Correct AnswerverifiedShow Answer

The principle of comparative advantage asserts that

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13.With trade,producer surplus is

Correct AnswerverifiedShow Answer

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of a particular good,

Correct AnswerverifiedShow Answer

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With trade and a tariff,consum...
View Answer

Figure 9-10.The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀) , (Q₂,P₁) ,and (Q₁,P₁) represents

Correct Answer
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