Question 1

Suppose Jamaica has an absolute advantage over other countries in producing sugar, but other countries have a comparative advantage over Jamaica in producing sugar. If trade in sugar is allowed, Jamaica

Accepted Answer

A)   will import sugar.
B)   will export sugar.
C)   will either import sugar or export sugar, but it is not clear from the given information.
D)   would have nothing to gain either from exporting or importing sugar.E) A) and B)
F) None of the above

Question 2

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland.
 
-Refer to Figure 9-18. If Isoland allows international trade and if the world price of peaches is $3, then

Accepted Answer

A)   Isoland has a comparative advantage, relative to other countries, in producing peaches.
B)   Isoland will export peaches.
C)   producer surplus with trade exceeds producer surplus without trade.
D)   consumer surplus with trade exceeds consumer surplus without trade.E) B) and D)
F) A) and B)

Question 3

List five arguments given to support trade restrictions.

Accepted Answer

The jobs argument; the nationa...

Question 4

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. 
-Refer to Figure 9-8. The country for which the figure is drawn

Accepted Answer

A)   has a comparative advantage relative to other countries in the production of cars and it will export cars.
B)   has a comparative advantage relative to other countries in the production of cars and it will import cars.
C)   has a comparative disadvantage relative to other countries in the production of cars and it will export cars.
D)   has a comparative disadvantage relative to other countries in the production of cars and it will import cars.E) A) and C)
F) B) and D)

Question 5

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6. Before the tariff is imposed, this country

Accepted Answer

A)   imports 200 roses.
B)   imports 400 roses.
C)   exports 200 roses.
D)   exports 400 roses.E) All of the above
F) A) and B)

Question 6

Figure 9-17 
-Refer to Figure 9-17. With free trade, the country imports

Accepted Answer

A)   16 units of the good.
B)   24 units of the good.
C)   60 units of the good.
D)   64 units of the good.E) None of the above
F) A) and C)

Question 7

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 8

Figure 9-22
The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. 
-Refer to Figure 9-22. Suppose the government imposes a tariff of $20 per unit. Relative to the free-trade outcome, the imposition of the tariff

Accepted Answer

A)   decreases imports of the good by 300 units and increases domestic production of the good by 300 units.
B)   decreases imports of the good by 300 units and increases domestic production of the good by 600 units.
C)   decreases imports of the good by 600 units and increases domestic production of the good by 300 units.
D)   decreases imports of the good by 600 units and increases domestic production of the good by 600 units.E) B) and C)
F) A) and D)

Question 9

The history of the textile industry raises important questions for economic policy.

Accepted Answer

A) True 
 B)False

Question 10

Patterns of trade among nations are primarily determined by

Accepted Answer

A)   cultural considerations.
B)   political considerations.
C)   comparative advantage.
D)   differences in the income elasticity of demand among nations.E) A) and D)
F) A) and C)

Question 11

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

Question 12

Figure 9-27
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 9-27. 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 13

Figure 9-25
The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $10 per unit. 
-Refer to Figure 9-25. Suppose the government imposes a tariff of $5 per unit. The deadweight loss caused by the tariff is

Accepted Answer

A)   $25.
B)   $50.
C)   $75.
D)   $100.E) A) and C)
F) C) and D)

Question 14

Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that

Accepted Answer

A)   if Canada were to allow trade, it would export hockey sticks.
B)   Canada has an absolute advantage, relative to other countries, in producing hockey sticks.
C)   Canada has a comparative advantage, relative to other countries, in producing baseball bats.
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 15

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) None of the above
F) B) and C)

Question 16

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 17

Suppose Japan exports cars to Russia and imports wine from France. This situation suggests

Accepted Answer

A)   Japan has a comparative advantage relative to France in producing wine, and Russia has a comparative advantage to Japan in producing cars.
B)   Japan has a comparative advantage relative to Russia in producing cars, and France has a comparative advantage relative to Japan in producing wine.
C)   Japan has an absolute advantage relative to Russia in producing cars, and France has an absolute advantage relative to Japan in producing wine.
D)   Japan has an absolute advantage relative to France in producing wine, and Russia has an absolute advantage relative to Japan in producing cars.E) None of the above
F) All of the above

Question 18

Figure 9-27
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 9-27. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Accepted Answer

Without trade, consu...

Question 19

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6. The size of the tariff on roses is

Accepted Answer

A)   $2.
B)   $4.
C)   $2.
D)   $1.E) A) and C)
F) A) and B)

Question 20

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-28. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

Accepted Answer

Consumer surplus is ...

Exam 9: Application: International Trade

The history of the textile industry raises important questions for economic policy.

Correct Answer
verified

Suppose Jamaica has an absolute advantage over other countries in producing sugar, but other countries have a comparative advantage over Jamaica in producing sugar. If trade in sugar is allowed, Jamaica

Correct Answer
verified

Figure 9-27 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 9-27. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct Answer
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Without trade, consu...
View Answer

List five arguments given to support trade restrictions.

Correct Answer
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The jobs argument; the nationa...
View Answer

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The size of the tariff on roses is

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

Patterns of trade among nations are primarily determined by

Correct Answer
verified

Suppose Japan exports cars to Russia and imports wine from France. This situation suggests

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
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Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18. If Isoland allows international trade and if the world price of peaches is $3, then

Correct Answer
verified

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. The country for which the figure is drawn

Correct Answer
verified

Correct Answer
verified
The deadwe...
View Answer

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. Government revenue raised by the tariff is represented by the area

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17. With free trade, the country imports

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

Correct Answer
verified

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

Correct Answer
verified
Consumer surplus is ...
View Answer

Figure 9-25 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $10 per unit. -Refer to Figure 9-25. Suppose the government imposes a tariff of $5 per unit. The deadweight loss caused by the tariff is

Correct Answer
verified

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. Before the tariff is imposed, this country

Correct Answer
verified

Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that

Correct Answer
verified

Exam 9: Application: International Trade

The history of the textile industry raises important questions for economic policy.

Correct AnswerverifiedShow Answer

Suppose Jamaica has an absolute advantage over other countries in producing sugar, but other countries have a comparative advantage over Jamaica in producing sugar. If trade in sugar is allowed, Jamaica

Correct AnswerverifiedShow Answer

Figure 9-27 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 9-27. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct AnswerverifiedWithout trade, consu...View AnswerShow Answer

List five arguments given to support trade restrictions.

Correct AnswerverifiedThe jobs argument; the nationa...View AnswerShow Answer

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The size of the tariff on roses is

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

Patterns of trade among nations are primarily determined by

Correct AnswerverifiedShow Answer

Suppose Japan exports cars to Russia and imports wine from France. This situation suggests

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 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18. If Isoland allows international trade and if the world price of peaches is $3, then

Correct AnswerverifiedShow Answer

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. The country for which the figure is drawn

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe deadwe...View AnswerShow Answer

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. Government revenue raised by the tariff is represented by the area

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. With free trade, the country imports

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

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

Correct AnswerverifiedConsumer surplus is ...View AnswerShow Answer

Figure 9-25 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $10 per unit. -Refer to Figure 9-25. Suppose the government imposes a tariff of $5 per unit. The deadweight loss caused by the tariff is

Correct AnswerverifiedShow Answer

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. Before the tariff is imposed, this country

Correct AnswerverifiedShow Answer

Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Without trade, consu...
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The jobs argument; the nationa...
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Correct Answer
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The deadwe...
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Correct Answer
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Consumer surplus is ...
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Correct Answer
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