Question 1

Figure 9-15 
-Refer to Figure 9-15. Consumer surplus with the tariff is

Accepted Answer

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

Question 2

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 3

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

Accepted Answer

A)  domestic producers gain and domestic consumers lose.
B)  domestic producers lose and domestic consumers gain.
C)  domestic producers and domestic consumers both gain.
D)  domestic producers and domestic consumers both lose.E) A) and B)
F) A) and C)

Question 4

Figure 9-17 
-Refer to Figure 9-17. Without trade, consumer surplus is

Accepted Answer

A)  $400 and producer surplus is $200.
B)  $400 and producer surplus is $800.
C)  $1,600 and producer surplus is $200.
D)  $1,600 and producer surplus is $800.E) A) and D)
F) A) and C)

Question 5

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

Accepted Answer

A) True 
 B)False

Question 6

When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,

Accepted Answer

A)  this is an indication that the world price of soybeans exceeds the nation's domestic price of soybeans in the absence of trade.
B)  this is an indication that the nation has a comparative advantage in producing soybeans.
C)  the nation's consumers of soybeans become worse off and the nation's producers of soybeans become better off.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 7

Suppose New Zealand goes from being an isolated country to being an exporter of wool. As a result,

Accepted Answer

A)  consumer surplus increases for consumers of wool in New Zealand.
B)  producer surplus increases for producers of wool in New Zealand.
C)  total surplus remains unchanged in the wool market in New Zealand.
D)  it is reasonable to infer that other countries have a comparative advantage over New Zealand in wool production.E) B) and D)
F) B) and C)

Question 8

After a certain nation changed its policy from one that banned international trade in wheat to one that allowed international trade in wheat, the nation began importing wheat. As a result, total surplus in the wheat market increased by $10 million. Which of the following changes could have occurred as well?

Accepted Answer

A)  The price of wheat in that nation increased with the adoption of the new policy.
B)  The domestic quantity of wheat supplied increased with the adoption of the new policy.
C)  Consumer surplus in the wheat market increased by $7 million and producer surplus in the wheat market increased by $3 million.
D)  Consumer surplus in the wheat market increased by $15 million and producer surplus in the wheat market decreased by $5 million.E) All of the above
F) None of the above

Question 9

When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter 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) A) and C)
F) A) and D)

Question 10

Figure 9-3. The domestic country is China. 
-Refer to Figure 9-3. With no international trade,

Accepted Answer

A)  the equilibrium price is $12 and the equilibrium quantity is 300.
B)  the equilibrium price is $16 and the equilibrium quantity is 200.
C)  the equilibrium price is $16 and the equilibrium quantity is 300.
D)  the equilibrium price is $16 and the equilibrium quantity is 450.E) All of the above
F) A) and D)

Question 11

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Accepted Answer

A)  More Danish-produced chips are sold in Denmark.
B)  More foreign-produced chips are sold in Denmark.
C)  Danish consumers of chips become better off.
D)  Total surplus in the Danish chip market increases.E) A) and B)
F) All of the above

Question 12

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1. In the absence of trade, the equilibrium price of wool in Scotland is

Accepted Answer

A)  $15.
B)  $45.
C)  $55.
D)  $70.E) A) and C)
F) B) and C)

Question 13

In the market for apples in a certain country, consumer surplus increases and total surplus increases when that country

Accepted Answer

A)  abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of apples.
B)  abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of apples.
C)  abandons a free-trade policy, adopts a no-trade policy, and becomes an importer of apples.
D)  abandons a free-trade policy, adopts a no-trade policy, and becomes an exporter of apples.E) All of the above
F) A) and D)

Question 14

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Accepted Answer

A) True 
 B)False

Question 15

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) All of the above
F) C) and D)

Question 16

Figure 9-2 
-Refer to Figure 9-2. Without trade, producer surplus is

Accepted Answer

A)  $210.
B)  $245.
C)  $455.
D)  $490.E) None of the above
F) B) and D)

Question 17

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,

Accepted Answer

A)  the country will be an exporter of the good.
B)  the country will be an importer of the good.
C)  the country will be neither an exporter nor an importer of the good.
D)  Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.E) A) and C)
F) C) and D)

Question 18

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

Accepted Answer

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

Question 19

Figure 9-5 
-Refer to Figure 9-5. If this country allows free trade in wagons,

Accepted Answer

A)  consumers will gain more than producers will lose.
B)  producers will gain more than consumers will lose.
C)  producers and consumers will both gain equally.
D)  producers and consumers will both lose equally.E) B) and D)
F) A) and D)

Question 20

Figure 9-5 
-Refer to Figure 9-5. Without trade, total surplus amounts to

Accepted Answer

A)  $122.50.
B)  $245.
C)  $367.50.
D)  $612.50.E) A) and D)
F) B) and D)

Exam 9: Application: International Trade

Figure 9-2 -Refer to Figure 9-2. Without trade, producer surplus is

Correct Answer
verified

Figure 9-5 -Refer to Figure 9-5. If this country allows free trade in wagons,

Correct Answer
verified

In the market for apples in a certain country, consumer surplus increases and total surplus increases when that country

Correct Answer
verified

When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,

Correct Answer
verified

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,

Correct Answer
verified

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

Correct Answer
verified

Suppose New Zealand goes from being an isolated country to being an exporter of wool. As a result,

Correct Answer
verified

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Correct Answer
verified

Correct Answer
verified

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

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

Correct Answer
verified

Figure 9-5 -Refer to Figure 9-5. Without trade, total surplus amounts to

Correct Answer
verified

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

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17. Without trade, consumer surplus is

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15. Consumer surplus with the tariff is

Correct Answer
verified

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. With no international trade,

Correct Answer
verified

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Correct Answer
verified

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1. In the absence of trade, the equilibrium price of wool in Scotland is

Correct Answer
verified

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

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-2 -Refer to Figure 9-2. Without trade, producer surplus is

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5. If this country allows free trade in wagons,

Correct AnswerverifiedShow Answer

In the market for apples in a certain country, consumer surplus increases and total surplus increases when that country

Correct AnswerverifiedShow Answer

When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,

Correct AnswerverifiedShow Answer

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose New Zealand goes from being an isolated country to being an exporter of wool. As a result,

Correct AnswerverifiedShow Answer

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5. Without trade, total surplus amounts to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. Without trade, consumer surplus is

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15. Consumer surplus with the tariff is

Correct AnswerverifiedShow Answer

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. With no international trade,

Correct AnswerverifiedShow Answer

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Correct AnswerverifiedShow Answer

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1. In the absence of trade, the equilibrium price of wool in Scotland is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified