Question 1

Figure 9-8
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 9-8. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Accepted Answer

With trade, consumer...

Question 2

The infant-industry argument

Accepted Answer

A)  is based on the belief that protecting industries when they are young will pay off later.
B)  is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children.
C)  has the support of most economists.
D)  is an argument that is advanced by advocates of free trade.E) B) and C)
F) A) and C)

Question 3

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Accepted Answer

A) True 
 B)False

Question 4

Scenario 9-1
​
For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD = 210 − 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = -90 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard.
-Refer to Scenario 9-1. If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is

Accepted Answer

A)  $47 and the equilibrium quantity of cardboard is 116 tons.
B)  $53 and the equilibrium quantity of cardboard is 104 tons.
C)  $60 and the equilibrium quantity of cardboard is 90 tons.
D)  $82 and the equilibrium quantity of cardboard is 46 tons.E) C) and D)
F) A) and B)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

If a country is exporting a good, this is because the country has an absolute advantage in the production of that good.
​

Accepted Answer

A) True 
 B)False

Question 7

Figure 9-10
The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit.  ​
-Refer to Figure 9-10. Suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, what will be the domestic price in this market?

Accepted Answer

With trade and a tar...

Question 8

Figure 9-3 
-Refer to Figure 9-3. Before the tariff is imposed, this country

Accepted Answer

A)  imports 200 roses.
B)  imports 400 roses.
C)  exports 200 roses.
D)  exports 400 roses.E) All of the above
F) A) and B)

Question 9

The "unfair-competition" argument might be cited by an American who believes that

Accepted Answer

A)  almost every country has a comparative advantage, relative to the United States, in producing almost all goods.
B)  young industries should be protected against foreign competition until they become profitable.
C)  the American automobile industry should be protected against Japanese firms that are able to produce automobiles at relatively low cost.
D)  the French government's subsidies to French farmers justify restrictions on American imports of French agricultural products.E) A) and B)
F) A) and C)

Question 10

Figure 9-10
The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit.  ​
-Refer to Figure 9-10. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported?

Accepted Answer

With trade...

Question 11

What is the fundamental basis for trade among nations?

Accepted Answer

A)  Shortages or surpluses in nations that do not trade
B)  Misguided economic policies
C)  Absolute advantage
D)  Comparative advantageE) A) and B)
F) None of the above

Question 12

Figure 9-4 
-Refer to Figure 9-4. Consumer surplus in this market before trade is

Accepted Answer

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

Question 13

Figure 9-4 
-Refer to Figure 9-4. The country for which the figure is drawn

Accepted Answer

A)  has a comparative advantage relative to other countries in the production of crude oil and it will export crude oil.
B)  has a comparative advantage relative to other countries in the production of crude oil and it will import crude oil.
C)  has a comparative disadvantage relative to other countries in the production of crude oil and it will export crude oil.
D)  has a comparative disadvantage relative to other countries in the production of crude oil and it will import crude oil.E) A) and B)
F) B) and D)

Question 14

Figure 9-7
The following diagram shows the domestic demand and domestic supply curves in a market.  ​
-Refer to Figure 9-7. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Accepted Answer

The equilibrium pric...

Exam 9: Application: International Trade

Figure 9-3 -Refer to Figure 9-3. Before the tariff is imposed, this country

Correct Answer
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If a country is exporting a good, this is because the country has an absolute advantage in the production of that good.

Correct Answer
verified

What is the fundamental basis for trade among nations?

Correct Answer
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When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off.

Correct Answer
verified

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-7. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct Answer
verified
The equilibrium pric...
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The "unfair-competition" argument might be cited by an American who believes that

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Figure 9-4 -Refer to Figure 9-4. Consumer surplus in this market before trade is

Correct Answer
verified

Correct Answer
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With trade...
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Correct Answer
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With trade and a tar...
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Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Correct Answer
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The infant-industry argument

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Figure 9-4 -Refer to Figure 9-4. The country for which the figure is drawn

Correct Answer
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Correct Answer
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Figure 9-8 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 9-8. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer
verified
With trade, consumer...
View Answer

Exam 9: Application: International Trade

Figure 9-3 -Refer to Figure 9-3. Before the tariff is imposed, this country

Correct AnswerverifiedShow Answer

If a country is exporting a good, this is because the country has an absolute advantage in the production of that good. ​

Correct AnswerverifiedShow Answer

What is the fundamental basis for trade among nations?

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

Correct AnswerverifiedShow Answer

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. ​ -Refer to Figure 9-7. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

The "unfair-competition" argument might be cited by an American who believes that

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Figure 9-4 -Refer to Figure 9-4. Consumer surplus in this market before trade is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade...View AnswerShow Answer

Correct AnswerverifiedWith trade and a tar...View AnswerShow Answer

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Correct AnswerverifiedShow Answer

The infant-industry argument

Correct AnswerverifiedShow Answer

Figure 9-4 -Refer to Figure 9-4. The country for which the figure is drawn

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 9-8 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 9-8. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct AnswerverifiedWith trade, consumer...View AnswerShow Answer

Correct Answer
verified

If a country is exporting a good, this is because the country has an absolute advantage in the production of that good.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-7. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct Answer
verified
The equilibrium pric...
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Correct Answer
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Correct Answer
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Correct Answer
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With trade...
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Correct Answer
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With trade and a tar...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Figure 9-8 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 9-8. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer
verified
With trade, consumer...
View Answer