Question 1

Figure 9-4 
-Refer to Figure 9-4. When the country for which the figure is drawn allows international trade in crude oil,

Accepted Answer

A)  consumer surplus for domestic crude oil consumers decreases.
B)  the demand for crude oil by domestic crude oil consumers decreases.
C)  the losses of the domestic losers outweigh the gains of the domestic winners.
D)  domestic crude oil producers sell less crude oil.E) B) and D)
F) B) and C)

Question 2

Figure 9-7
The following diagram shows the domestic demand and domestic supply curves in a market.  ​
-Refer to Figure 9-7. Suppose the world price in this market is $7. If the country allows free trade, by how much do consumer surplus, producer surplus, and total surplus change with trade?

Accepted Answer

With trade, consumer surplus f...

Question 3

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

Accepted Answer

A) True 
 B)False

Question 4

Figure 9-4 
-Refer to Figure 9-4. A result of this country allowing international trade in crude oil is as follows:

Accepted Answer

A)  The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.
B)  The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel.
C)  The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear.
D)  domestic consumers lose by more than domestic producers gain.E) None of the above
F) A) and C)

Question 5

Figure 9-5 
-Spain is an importer of computer chips, taking the world price of $10 per chip as given. Suppose Spain imposes a $5 tariff on chips. Which of the following outcomes is possible?

Accepted Answer

A)  Spanish consumers of chips lose and Spanish producers of chips gain.
B)  Fewer Spanish-produced chips are sold in Spain.
C)  Spanish consumers and producers of chips gain.
D)  Total surplus in the Spanish chip market increases.E) B) and D)
F) A) and D)

Question 6

Most economists support the infant-industry argument because it is so easy to implement in practice.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  A.
B)  A + B.
C)  B + C + D.
D)  C.E) C) and D)
F) B) and D)

Question 8

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Accepted Answer

A)  $180.00.
B)  $700.00.
C)  $880.00.
D)  $825.00.E) All of the above
F) A) and B)

Question 9

Import quotas and tariffs both cause the quantity of imports to fall.

Accepted Answer

A) True 
 B)False

Question 10

When the nation of Worldova allows trade and becomes an exporter of silk,

Accepted Answer

A)  residents of Worldova who produce silk become worse off; residents of Worldova who buy silk become better off; and the economic well-being of Worldova rises.
B)  residents of Worldova who produce silk become worse off; residents of Worldova who buy silk become better off; and the economic well-being of Worldova falls.
C)  residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova rises.
D)  residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova falls.E) None of the above
F) B) and D)

Question 11

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. From the figure it is apparent that

Accepted Answer

A)  Uganda will export coffee if trade is allowed.
B)  Uganda will import coffee if trade is allowed.
C)  Uganda has nothing to gain either by importing or exporting coffee.
D)  the world price will fall if Uganda begins to allow its citizens to trade with other countries.E) C) and D)
F) None of the above

Question 12

Figure 9-3 
-Refer to Figure 9-3. The amount of revenue collected by the government from the tariff is

Accepted Answer

A)  $200.
B)  $400.
C)  $300.
D)  $100.E) A) and B)
F) A) and C)

Question 13

Assume, for China, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production of oranges,

Accepted Answer

A)  China has a comparative advantage over other countries and China will import oranges.
B)  China has a comparative advantage over other countries and China will export oranges.
C)  other countries have a comparative advantage over China and China will import oranges.
D)  other countries have a comparative advantage over China and China will export oranges.E) A) and B)
F) None of the above

Question 14

When a country allows international trade and becomes an importer of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off.

Accepted Answer

A) True 
 B)False

Question 15

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, how much are consumer surplus, producer surplus, and total surplus with trade?

Accepted Answer

With trade, consumer...

Question 16

Which of the following is not a commonly-advanced argument for trade restrictions?

Accepted Answer

A)  The jobs argument
B)  The national-security argument
C)  The infant-industry argument
D)  The efficiency argumentE) B) and C)
F) C) and D)

Question 17

The nation of Loneland does not allow international trade. In Loneland, you can buy 1 pound of beef for 2 pounds of cheese. In neighboring countries, you can buy 2 pounds of beef for 3 pounds of cheese. If Loneland were to allow free trade, it would export cheese.

Accepted Answer

A) True 
 B)False

Question 18

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. When trade is allowed,

Accepted Answer

A)  Ugandan producers of coffee become better off and Ugandan consumers of coffee become worse off.
B)  Ugandan consumers of coffee become better off and Ugandan producers of coffee become worse off.
C)  both Ugandan producers and consumers of coffee become better off.
D)  both Ugandan producers and consumers of coffee become worse off.E) A) and B)
F) A) and C)

Question 19

Figure 9-5 
-Refer to Figure 9-5. Producer surplus in this market before trade is

Accepted Answer

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

Question 20

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, how many units will domestic consumers demand and how many units will domestic producers supply?

Accepted Answer

With trade and a tariff, domes...

Exam 9: Application: International Trade

When a country allows international trade and becomes an importer of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off.

Correct Answer
verified

The nation of Loneland does not allow international trade. In Loneland, you can buy 1 pound of beef for 2 pounds of cheese. In neighboring countries, you can buy 2 pounds of beef for 3 pounds of cheese. If Loneland were to allow free trade, it would export cheese.

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Correct Answer
verified

When the nation of Worldova allows trade and becomes an exporter of silk,

Correct Answer
verified

Assume, for China, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production of oranges,

Correct Answer
verified

Figure 9-3 -Refer to Figure 9-3. The amount of revenue collected by the government from the tariff is

Correct Answer
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Figure 9-4 -Refer to Figure 9-4. Producer surplus in this market before trade is

Correct Answer
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Figure 9-1 Uganda -Refer to Figure 9-1. From the figure it is apparent that

Correct Answer
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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, how much are consumer surplus, producer surplus, and total surplus with trade?

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

Correct Answer
verified
With trade and a tariff, domes...
View Answer

Figure 9-5 -Refer to Figure 9-5. Producer surplus in this market before trade is

Correct Answer
verified

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

Correct Answer
verified

Figure 9-5 -Spain is an importer of computer chips, taking the world price of $10 per chip as given. Suppose Spain imposes a $5 tariff on chips. Which of the following outcomes is possible?

Correct Answer
verified

Which of the following is not a commonly-advanced argument for trade restrictions?

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. When trade is allowed,

Correct Answer
verified

Most economists support the infant-industry argument because it is so easy to implement in practice.

Correct Answer
verified

Import quotas and tariffs both cause the quantity of imports to fall.

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. Suppose the world price in this market is $7. If the country allows free trade, by how much do consumer surplus, producer surplus, and total surplus change with trade?

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

Figure 9-4 -Refer to Figure 9-4. When the country for which the figure is drawn allows international trade in crude oil,

Correct Answer
verified

Figure 9-4 -Refer to Figure 9-4. A result of this country allowing international trade in crude oil is as follows:

Correct Answer
verified

Exam 9: Application: International Trade

When a country allows international trade and becomes an importer of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off.

Correct AnswerverifiedShow Answer

The nation of Loneland does not allow international trade. In Loneland, you can buy 1 pound of beef for 2 pounds of cheese. In neighboring countries, you can buy 2 pounds of beef for 3 pounds of cheese. If Loneland were to allow free trade, it would export cheese.

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Correct AnswerverifiedShow Answer

When the nation of Worldova allows trade and becomes an exporter of silk,

Correct AnswerverifiedShow Answer

Assume, for China, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production of oranges,

Correct AnswerverifiedShow Answer

Figure 9-3 -Refer to Figure 9-3. The amount of revenue collected by the government from the tariff is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. From the figure it is apparent that

Correct AnswerverifiedShow Answer

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, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct AnswerverifiedWith trade, consumer...View AnswerShow Answer

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

Figure 9-5 -Refer to Figure 9-5. Producer surplus in this market before trade is

Correct AnswerverifiedShow Answer

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

Correct AnswerverifiedShow Answer

Figure 9-5 -Spain is an importer of computer chips, taking the world price of $10 per chip as given. Suppose Spain imposes a $5 tariff on chips. Which of the following outcomes is possible?

Correct AnswerverifiedShow Answer

Which of the following is not a commonly-advanced argument for trade restrictions?

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. When trade is allowed,

Correct AnswerverifiedShow Answer

Most economists support the infant-industry argument because it is so easy to implement in practice.

Correct AnswerverifiedShow Answer

Import quotas and tariffs both cause the quantity of imports to fall.

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. Suppose the world price in this market is $7. If the country allows free trade, by how much do consumer surplus, producer surplus, and total surplus change with trade?

Correct AnswerverifiedWith trade, consumer surplus f...View AnswerShow Answer

Figure 9-4 -Refer to Figure 9-4. When the country for which the figure is drawn allows international trade in crude oil,

Correct AnswerverifiedShow Answer

Figure 9-4 -Refer to Figure 9-4. A result of this country allowing international trade in crude oil is as follows:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. With trade, total surplus in the Ugandan coffee market amounts to

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. From the figure it is apparent that

Correct Answer
verified

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, how much are consumer surplus, producer surplus, and total surplus with trade?

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

Correct Answer
verified
With trade and a tariff, domes...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. When trade is allowed,

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. Suppose the world price in this market is $7. If the country allows free trade, by how much do consumer surplus, producer surplus, and total surplus change with trade?

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

Correct Answer
verified

Correct Answer
verified