Question 1

Figure 9-6 
-Refer to Figure 9-6. The area C + D + E + F represents

Accepted Answer

A)  the decrease in consumer surplus caused by the tariff.
B)  the decrease in total surplus caused by the tariff.
C)  the deadweight loss of the tariff minus government revenue raised by the tariff.
D)  the deadweight loss of the tariff plus government revenue raised by the tariff.E) A) and B)
F) None of the above

Question 2

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

Accepted Answer

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

Question 3

​Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Accepted Answer

A) True 
 B)False

Question 4

Economists feel that national security concerns never provide a legitimate rationale for trade restrictions.

Accepted Answer

A) True 
 B)False

Question 5

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 changes from the area A + B + D to the area A.
B)  producer surplus changes from the area C to the area B + C + D.
C)  total surplus decreases by the area D.
D)  consumer surplus changes from the area A to the area A + B.E) A) and B)
F) All of the above

Question 6

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

Accepted Answer

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

Question 7

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. 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, consu...

Question 8

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 9

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. With trade, Uganda will

Accepted Answer

A)  export 11 units of coffee.
B)  export 5 units of coffee.
C)  import 15 units of coffee.
D)  import 6 units of coffee.E) None of the above
F) A) and B)

Question 10

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 many units will domestic consumers demand and how many units will domestic producers produce?

Accepted Answer

With trade, domestic...

Question 11

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

Accepted Answer

A)  increases by the area B + D.
B)  increases by the area C + F.
C)  decreases by the area B + D.
D)  decreases by the area D + G.E) A) and B)
F) B) and D)

Question 12

Figure 9-6 
-Refer to Figure 9-6. The deadweight loss created by the tariff is represented by the area

Accepted Answer

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

Question 13

Figure 9-6 
-Refer to Figure 9-6. Government revenue raised by the tariff is represented by the area

Accepted Answer

A)  E.
B)  B + E.
C)  D + E + F.
D)  B + D + E + F.E) A) and B)
F) All of the above

Question 14

What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Accepted Answer

Arguments mentioned in the text include ...

Question 15

Figure 9-6 
-The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Accepted Answer

A)  exporting steel and the price per ton in Russia decreased to $650.
B)  exporting steel and the price per ton in Russia remained at $1,000.
C)  importing steel and the price per ton in Russia decreased to $650.
D)  importing steel and the price per ton in Russia remained at $1,000.E) A) and B)
F) B) and C)

Question 16

​The small country assumption is made in developing models of international trade because it applies to US markets.

Accepted Answer

A) True 
 B)False

Question 17

Figure 9-3 
-Refer to Figure 9-3. When the tariff is imposed, domestic consumers

Accepted Answer

A)  lose surplus of $400.
B)  lose surplus of $450.
C)  gain surplus of $50.
D)  gain surplus of $800.E) A) and C)
F) A) and B)

Question 18

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 much is tariff revenue?

Accepted Answer

With trade...

Question 19

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Accepted Answer

A)  better off regardless of how Colombia responds.
B)  better off if Colombia removes the subsidies, and will be no worse off if it doesn't.
C)  worse off if Colombia doesn't remove the subsidies in response to the threat.
D)  worse off regardless of how Colombia responds.E) B) and D)
F) B) and C)

Question 20

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

Accepted Answer

A)  increases by the area B + D.
B)  increases by the area B + D + G.
C)  decreases by the area C + F.
D)  decreases by the area G.E) All of the above
F) C) and D)

Exam 9: Application: International Trade

Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Correct Answer
verified

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

Figure 9-6 -Refer to Figure 9-6. The deadweight loss created by the tariff is represented by the area

Correct Answer
verified

The small country assumption is made in developing models of international trade because it applies to US markets.

Correct Answer
verified

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

Figure 9-6 -Refer to Figure 9-6. Government revenue raised by the tariff is represented by the area

Correct Answer
verified

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct Answer
verified

Economists feel that national security concerns never provide a legitimate rationale for trade restrictions.

Correct Answer
verified

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Correct Answer
verified

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

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

Correct Answer
verified

Correct Answer
verified
With trade...
View Answer

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

Correct Answer
verified

What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Correct Answer
verified
Arguments mentioned in the text include ...
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 9-3 -Refer to Figure 9-3. When the tariff is imposed, domestic consumers

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. With trade, Uganda will

Correct Answer
verified

Figure 9-6 -The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Correct Answer
verified

Figure 9-6 -Refer to Figure 9-6. The area C + D + E + F represents

Correct Answer
verified

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

Correct Answer
verified

Exam 9: Application: International Trade

​Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade, domestic...View AnswerShow Answer

Figure 9-6 -Refer to Figure 9-6. The deadweight loss created by the tariff is represented by the area

Correct AnswerverifiedShow Answer

​The small country assumption is made in developing models of international trade because it applies to US markets.

Correct AnswerverifiedShow Answer

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

Figure 9-6 -Refer to Figure 9-6. Government revenue raised by the tariff is represented by the area

Correct AnswerverifiedShow Answer

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct AnswerverifiedShow Answer

Economists feel that national security concerns never provide a legitimate rationale for trade restrictions.

Correct AnswerverifiedShow Answer

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade...View AnswerShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

Correct AnswerverifiedShow Answer

What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Correct AnswerverifiedArguments mentioned in the text include ...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 9-3 -Refer to Figure 9-3. When the tariff is imposed, domestic consumers

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. With trade, Uganda will

Correct AnswerverifiedShow Answer

Figure 9-6 -The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Correct AnswerverifiedShow Answer

Figure 9-6 -Refer to Figure 9-6. The area C + D + E + F represents

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Correct Answer
verified

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

Correct Answer
verified

The small country assumption is made in developing models of international trade because it applies to US markets.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

Correct Answer
verified

Correct Answer
verified
With trade...
View Answer

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

Correct Answer
verified

Correct Answer
verified
Arguments mentioned in the text include ...
View Answer

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. With trade, Uganda will

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified