Question 1

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

Accepted Answer

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

Question 2

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. If the country allows free trade, by how much do consumer surplus, producer surplus, and producer surplus change?

Accepted Answer

With trade, consumer surplus i...

Question 3

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6. The amount of revenue collected by the government from the tariff is

Accepted Answer

A)   $200.
B)   $400.
C)   $500.
D)   $600.E) None of the above
F) A) and B)

Question 4

A common argument in favor of restricting international trade in good x is based on the premise that

Accepted Answer

A)   international trade reduces total surplus in countries that export good x.
B)   international trade reduces total surplus in countries that import good x.
C)   international trade is desirable only when countries with different domestic supplies of natural resources play by different rules when trading with one another.
D)   trade restrictions can be useful when one country bargains with its trading partners.E) A) and C)
F) B) and C)

Question 5

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?

Accepted Answer

Jumanji wi...

Question 6

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 many units will be imported?

Accepted Answer

With trade and a tar...

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 9-24. Suppose the government imposes a tariff of $10 per unit. The deadweight loss caused by the tariff is

Accepted Answer

A)   $25.
B)   $50.
C)   $75.
D)   $100.E) C) and D)
F) None of the above

Question 8

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

Accepted Answer

A)   domestic producers of the good become better off.
B)   domestic consumers of the good become worse off.
C)   the gains of the winners exceed the losses of the losers.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 9

William and Jamal live in the country of Dumexia. As a result of Dumexia's legalization of international trade in bananas, William becomes better off and Jamal becomes worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Trade decisions are based on the principle of absolute advantage.

Accepted Answer

A) True 
 B)False

Question 12

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2. Without trade, producer surplus is

Accepted Answer

A)   $423.
B)   $845.
C)   $1,690.
D)   $3,380.E) C) and D)
F) A) and D)

Question 13

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

Question 14

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2. At the world price and with free trade,

Accepted Answer

A)   the domestic quantity of calculators demanded is greater than the domestic quantity of calculators supplied.
B)   the calculator market is in equilibrium.
C)   the domestic demand for calculators is perfectly inelastic.
D)   both domestic producers of calculators and domestic consumers of calculators are better off than they were without free trade.E) All of the above
F) B) and C)

Question 15

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. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported?

Accepted Answer

The countr...

Question 16

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

Accepted Answer

A)   everyone in the country benefits.
B)   the gains of the winners exceed the losses of the losers.
C)   the losses of the losers exceed the gains of the winners.
D)   everyone in the country loses.E) A) and B)
F) A) and C)

Question 17

Figure 9-21
The following diagram shows the domestic demand and domestic supply for a market. In addition, assume that the world price in this market is $40 per unit. 
-Refer to Figure 9-21. Consumer surplus with free trade is

Accepted Answer

A)   $4,000.
B)   $8,000.
C)   $16,000.
D)   $18,000.E) None of the above
F) B) and C)

Question 18

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1. From the figure it is apparent that

Accepted Answer

A)   Guatemala will experience a shortage of coffee if trade is not allowed.
B)   Guatemala will experience a surplus of coffee if trade is not allowed.
C)   Guatemala has a comparative advantage in producing coffee, relative to the rest of the world.
D)   foreign countries have a comparative advantage in producing coffee, relative to Guatemala.E) A) and D)
F) B) and D)

Question 19

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. In the country for which the figure is drawn, total surplus with international trade in cars

Accepted Answer

A)   is represented by the area A + B + C.
B)   is represented by the area A + B + D.
C)   is smaller than producer surplus without international trade in cars.
D)   is larger than total surplus without international trade in cars.E) A) and B)
F) A) and D)

Question 20

One should be especially wary of the national-security argument for restricting trade when that argument is made by

Accepted Answer

A)   representatives of industry.
B)   representatives of the defense establishment.
C)   members of households.
D)   foreign government officials.E) None of the above
F) All of the above

Exam 9: Application: International Trade

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

Correct Answer
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Figure 9-21 The following diagram shows the domestic demand and domestic supply for a market. In addition, assume that the world price in this market is $40 per unit. -Refer to Figure 9-21. Consumer surplus with free trade is

Correct Answer
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A common argument in favor of restricting international trade in good x is based on the premise that

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

Correct Answer
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Trade decisions are based on the principle of absolute advantage.

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

Correct Answer
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Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. Without trade, producer surplus is

Correct Answer
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One should be especially wary of the national-security argument for restricting trade when that argument is made by

Correct Answer
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Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The amount of revenue collected by the government from the tariff is

Correct Answer
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Figure 9-9 -Refer to Figure 9-9. Total surplus in this market after trade is

Correct Answer
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Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. From the figure it is apparent that

Correct Answer
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William and Jamal live in the country of Dumexia. As a result of Dumexia's legalization of international trade in bananas, William becomes better off and Jamal becomes worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

Correct Answer
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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. In the country for which the figure is drawn, total surplus with international trade in cars

Correct Answer
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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. If the country allows free trade, by how much do consumer surplus, producer surplus, and producer surplus change?

Correct Answer
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With trade, consumer surplus i...
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The countr...
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Figure 9-9 -Refer to Figure 9-9. Producer surplus in this market before trade is

Correct Answer
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Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. At the world price and with free trade,

Correct Answer
verified

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?

Correct Answer
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Jumanji wi...
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With trade and a tar...
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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 9-24. Suppose the government imposes a tariff of $10 per unit. The deadweight loss caused by the tariff is

Correct Answer
verified

Exam 9: Application: International Trade

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

Correct AnswerverifiedShow Answer

Figure 9-21 The following diagram shows the domestic demand and domestic supply for a market. In addition, assume that the world price in this market is $40 per unit. -Refer to Figure 9-21. Consumer surplus with free trade is

Correct AnswerverifiedShow Answer

A common argument in favor of restricting international trade in good x is based on the premise that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Trade decisions are based on the principle of absolute advantage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. Without trade, producer surplus is

Correct AnswerverifiedShow Answer

One should be especially wary of the national-security argument for restricting trade when that argument is made by

Correct AnswerverifiedShow Answer

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The amount of revenue collected by the government from the tariff is

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

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Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. From the figure it is apparent that

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William and Jamal live in the country of Dumexia. As a result of Dumexia's legalization of international trade in bananas, William becomes better off and Jamal becomes worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

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. In the country for which the figure is drawn, total surplus with international trade in cars

Correct AnswerverifiedShow Answer

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. If the country allows free trade, by how much do consumer surplus, producer surplus, and producer surplus change?

Correct AnswerverifiedWith trade, consumer surplus i...View AnswerShow Answer

Correct AnswerverifiedThe countr...View AnswerShow Answer

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

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Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. At the world price and with free trade,

Correct AnswerverifiedShow Answer

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?

Correct AnswerverifiedJumanji wi...View AnswerShow Answer

Correct AnswerverifiedWith trade and a tar...View AnswerShow 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 9-24. Suppose the government imposes a tariff of $10 per unit. The deadweight loss caused by the tariff is

Correct AnswerverifiedShow Answer

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With trade, consumer surplus i...
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The countr...
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Jumanji wi...
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With trade and a tar...
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