Question 1

List four benefits of international trade.

Accepted Answer

Increased variety of goods; lo...

Question 2

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed. If the world price of corn is $3 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of corn?

Accepted Answer

Nash will ...

Question 3

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. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Accepted Answer

Without trade, consu...

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. Suppose the world price of cardboard is $82.5 and international trade is allowed. Then Boxland's consumers demand

Accepted Answer

A)  45 tons of cardboard and Boxland's producers supply 157.5 tons of cardboard.
B)  45 tons of cardboard and Boxland's producers supply 90 tons of cardboard.
C)  90 tons of cardboard and Boxland's producers supply 157.5 tons of cardboard.
D)  90 tons of cardboard and Boxland's producers supply 90 tons of cardboard.E) C) and D)
F) A) and B)

Question 5

Figure 9-5 
-Refer to Figure 9-5. 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) A) and C)

Question 6

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, will the country import or export this good, and how many units will be imported/exported?

Accepted Answer

With trade...

Question 7

Figure 9-2  ​
-Refer to Figure 9-2. With trade, this country

Accepted Answer

A)  exports 160 skateboards.
B)  exports 320 skateboards.
C)  imports 160 skateboards.
D)  imports 320 skateboards.E) B) and D)
F) All of the above

Question 8

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

Accepted Answer

Domestic consumers w...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Accepted Answer

A) True 
 B)False

Question 11

Figure 9-2  ​
-Refer to Figure 9-2. Without trade, consumer surplus amounts to

Accepted Answer

A)  $19,440.
B)  $23,280.
C)  $9,720.
D)  $20,280.E) A) and B)
F) All of the above

Question 12

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Accepted Answer

A) True 
 B)False

Question 13

Figure 9-4 
-Refer to Figure 9-4. The change in total surplus in this market because of trade is

Accepted Answer

A)  D, and this area represents a loss of total surplus because of trade.
B)  D, and this area represents a gain in total surplus because of trade.
C)  B + D, and this area represents a loss of total surplus because of trade.
D)  B + D, and this area represents a gain in total surplus because of trade.E) A) and B)
F) C) and D)

Question 14

Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports.

Accepted Answer

A) True 
 B)False

Question 15

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 is the deadweight loss caused by the tariff?

Accepted Answer

The deadwe...

Question 16

Figure 9-6 
-Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Accepted Answer

A)  Total surplus in the domestic country always falls.
B)  Producer surplus of domestic producers increases.
C)  The domestic country always experiences a deadweight loss.
D)  Consumer surplus of domestic consumers increases.E) A) and B)
F) None of the above

Question 17

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

Accepted Answer

A)  China has a comparative advantage over other countries and China will import apples.
B)  China has a comparative advantage over other countries and China will export apples.
C)  other countries have a comparative advantage over China and China will import apples.
D)  other countries have a comparative advantage over China and China will export apples.E) B) and C)
F) B) and D)

Question 18

If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of the tariff.

Accepted Answer

A) True 
 B)False

Question 19

The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off.

Accepted Answer

A) True 
 B)False

Question 20

The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Accepted Answer

A)  if it works, consumer surplus will decline.
B)  if it works, producer surplus falls.
C)  if it fails, the country faces a choice between two bad options.
D)  if it fails, total surplus will increase.E) None of the above
F) B) and D)

Exam 9: Application: International Trade

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

Correct Answer
verified

Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports.

Correct Answer
verified

List four benefits of international trade.

Correct Answer
verified
Increased variety of goods; lo...
View Answer

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Correct Answer
verified

Figure 9-6 -Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Correct Answer
verified

If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of the tariff.

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Without trade, consumer surplus amounts to

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, will the country import or export this good, and how many units will be imported/exported?

Correct Answer
verified
With trade...
View Answer

Figure 9-4 -Refer to Figure 9-4. The change in total surplus in this market because of trade is

Correct Answer
verified

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed. If the world price of corn is $3 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of corn?

Correct Answer
verified
Nash will ...
View 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. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct Answer
verified
Without trade, consu...
View Answer

Correct Answer
verified

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct Answer
verified

The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off.

Correct Answer
verified

The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Correct Answer
verified

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

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

Correct Answer
verified
Domestic consumers w...
View Answer

Figure 9-2 -Refer to Figure 9-2. With trade, this country

Correct Answer
verified

Correct Answer
verified
The deadwe...
View Answer

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

Correct Answer
verified

Exam 9: Application: International Trade

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

Correct AnswerverifiedShow Answer

Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports.

Correct AnswerverifiedShow Answer

List four benefits of international trade.

Correct AnswerverifiedIncreased variety of goods; lo...View AnswerShow Answer

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Correct AnswerverifiedShow Answer

Figure 9-6 -Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Correct AnswerverifiedShow Answer

If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of the tariff.

Correct AnswerverifiedShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. Without trade, consumer surplus amounts to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade...View AnswerShow Answer

Figure 9-4 -Refer to Figure 9-4. The change in total surplus in this market because of trade is

Correct AnswerverifiedShow Answer

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed. If the world price of corn is $3 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of corn?

Correct AnswerverifiedNash will ...View AnswerShow 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. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct AnswerverifiedWithout trade, consu...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct AnswerverifiedShow Answer

The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off.

Correct AnswerverifiedShow Answer

The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDomestic consumers w...View AnswerShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. With trade, this country

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe deadwe...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Increased variety of goods; lo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Without trade, consumer surplus amounts to

Correct Answer
verified

Correct Answer
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With trade...
View Answer

Correct Answer
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Correct Answer
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Nash will ...
View 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. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct Answer
verified
Without trade, consu...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Domestic consumers w...
View Answer

Figure 9-2 -Refer to Figure 9-2. With trade, this country

Correct Answer
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Correct Answer
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The deadwe...
View Answer

Correct Answer
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