Question 1

Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests

Accepted Answer

A)   Russia has a comparative advantage over Brazil in producing coffee, and Ireland has a comparative advantage over Russia in producing sunflower seeds.
B)   Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee.
C)   Russia has an absolute advantage over Ireland in producing sunflower seeds, and Brazil has an absolute advantage over Russia in producing coffee.
D)   Russia has an absolute advantage over Brazil in producing coffee, and Ireland has an absolute advantage over Russia in producing sunflower seeds.E) B) and D)
F) B) and C)

Question 2

Scenario 9-1
The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is
$52 per bushel. The U.S. is a price-taker in the market for peaches.
-Refer to Scenario 9-1. If trade in peaches is allowed, U.S. producers of peaches

Accepted Answer

A)   will be better off.
B)   will be worse off.
C)   will be unaffected.
D)   will experience a decrease in their collective producer surplus.E) B) and C)
F) A) and B)

Question 3

Figure 9-17 
-Refer to Figure 9-17. The amount of revenue collected by the government from the tariff is

Accepted Answer

A)   $32.
B)   $288.
C)   $368.
D)   $720.E) A) and B)
F) A) and C)

Question 4

Figure 9-29
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 9-29. 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 5

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 6

When a country allows trade and becomes an importer of coal,

Accepted Answer

A)   the losses of the domestic producers of coal exceed the gains of the domestic consumers of coal.
B)   the losses of the domestic consumers of coal exceed the gains of the domestic producers of coal.
C)   the gains of the domestic producers of coal exceed the losses of the domestic consumers of coal.
D)   the gains of the domestic consumers of coal exceed the losses of the domestic producers of coal.E) All of the above
F) None of the above

Question 7

Figure 9-23
The following diagram shows the domestic demand and domestic supply for a market. Assume that the world price in this market is $120 per unit. 
-Refer to Figure 9-23. Consumer surplus with free trade is

Accepted Answer

A)   $75.
B)   $150.
C)   $200.
D)   $300.E) A) and B)
F) A) and C)

Question 8

The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO).

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. 
-Refer to Figure 9-16. 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) B) and D)
F) A) and B)

Question 11

Figure 9-20
The figure illustrates the market for rice in Vietnam. 
-Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Accepted Answer

A)   9,250.
B)   10,000.
C)   12,000.
D)   13,000.E) B) and C)
F) A) and C)

Question 12

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations: 
-Refer to Scenario 9-3. Suppose the world price in this market is $8 per unit, and suppose the country imposes a $1 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 13

Which of the following statements is true?

Accepted Answer

A)   Free trade benefits a country when it exports but harms it when it imports.
B)   "Voluntary" limits on Canadian exports of hogs are better for the United States than U.S. tariffs placed on Canadian hog exports.
C)   Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses, whereas quotas do not impose deadweight losses.
D)   Free trade benefits a country both when it exports and when it imports.E) C) and D)
F) A) and D)

Question 14

Figure 9-17 
-Refer to Figure 9-17. With trade and a tariff, consumer surplus is

Accepted Answer

A)   $808 and producer surplus is $200.
B)   $808 and producer surplus is $392.
C)   $1,024 and producer surplus is $200.
D)   $1,024 and producer surplus is $392.E) C) and D)
F) B) and D)

Question 15

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

Accepted Answer

A)   both domestic producers and domestic consumers become better off.
B)   domestic producers become better off, and domestic consumers become worse off.
C)   domestic producers become worse off, and domestic consumers become better off.
D)   both domestic producers and domestic consumers become worse off.E) All of the above
F) A) and B)

Question 16

List four benefits of international trade.

Accepted Answer

Increased variety of goods; lo...

Question 17

Figure 9-13 
-Refer to Figure 9-13. Consumer surplus before trade is

Accepted Answer

A)   $1,600.
B)   $2,400.
C)   $3,200.
D)   $3,600.E) B) and D)
F) None of the above

Question 18

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

Accepted Answer

A) True 
 B)False

Question 19

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5. Total surplus with trade exceeds total surplus without trade by

Accepted Answer

A)   $640.
B)   $1,280.
C)   $2,560.
D)   $3,840.E) C) and D)
F) A) and D)

Question 20

In 2008, the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy. Of those surveyed,

Accepted Answer

A)   57 percent said free international trade helped the economy.
B)   26 percent said free international trade helped the economy.
C)   30 percent said free international trade hurt the economy.
D)   16 percent said free international trade hurt the economy.E) A) and C)
F) B) and C)

Exam 9: Application: International Trade

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct Answer
verified

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

Correct Answer
verified

In 2008, the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy. Of those surveyed,

Correct Answer
verified

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

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

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17. With trade and a tariff, consumer surplus is

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

Correct Answer
verified

Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. -Refer to Figure 9-16. The area C + D + E + F represents

Correct Answer
verified

Figure 9-13 -Refer to Figure 9-13. Consumer surplus before trade is

Correct Answer
verified

Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests

Correct Answer
verified

Correct Answer
verified
With trade...
View Answer

The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO).

Correct Answer
verified

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. Total surplus with trade exceeds total surplus without trade by

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17. The amount of revenue collected by the government from the tariff is

Correct Answer
verified

List four benefits of international trade.

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

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

When a country allows trade and becomes an importer of coal,

Correct Answer
verified

Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The U.S. is a price-taker in the market for peaches. -Refer to Scenario 9-1. If trade in peaches is allowed, U.S. producers of peaches

Correct Answer
verified

Figure 9-23 The following diagram shows the domestic demand and domestic supply for a market. Assume that the world price in this market is $120 per unit. -Refer to Figure 9-23. Consumer surplus with free trade is

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In 2008, the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy. Of those surveyed,

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. With trade and a tariff, consumer surplus is

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

Correct AnswerverifiedShow Answer

Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. -Refer to Figure 9-16. The area C + D + E + F represents

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13. Consumer surplus before trade is

Correct AnswerverifiedShow Answer

Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade...View AnswerShow Answer

The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO).

Correct AnswerverifiedShow Answer

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. Total surplus with trade exceeds total surplus without trade by

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. The amount of revenue collected by the government from the tariff is

Correct AnswerverifiedShow Answer

List four benefits of international trade.

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

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

When a country allows trade and becomes an importer of coal,

Correct AnswerverifiedShow Answer

Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The U.S. is a price-taker in the market for peaches. -Refer to Scenario 9-1. If trade in peaches is allowed, U.S. producers of peaches

Correct AnswerverifiedShow Answer

Figure 9-23 The following diagram shows the domestic demand and domestic supply for a market. Assume that the world price in this market is $120 per unit. -Refer to Figure 9-23. Consumer surplus with free trade is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
With trade...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified