Question 1

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 2

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) A) and B)
F) C) and D)

Question 3

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

Accepted Answer

A)   Consumer surplus decreases by $100; producer surplus increases by $100; and government revenue from the tariff amounts to $50.
B)   Consumer surplus decreases by $200; producer surplus increases by $100; and government revenue from the tariff amounts to $50.
C)   Consumer surplus increases by $100; producer surplus decreases by $200; and government revenue from the tariff amounts to $50.
D)   Consumer surplus decreases by $50; producer surplus increases by $200; and government revenue from the tariff amounts to $150.E) C) and D)
F) All of the above

Question 4

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?

Accepted Answer

Nash will ...

Question 5

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

Question 6

Scenario 9-2
• For a small country called Boxland, the equation of the domestic demand curve for cardboard is
  where
   represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard.
• For Boxland, the equation of the domestic supply curve for cardboard is
  where
   represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard.
-Refer to Scenario 9-2. Suppose the world price of cardboard is $45 and international trade is allowed. Then Boxland's consumers demand

Accepted Answer

A)   110 tons of cardboard and Boxland's producers supply 75 tons of cardboard.
B)   110 tons of cardboard and Boxland's producers supply 96 tons of cardboard.
C)   96 tons of cardboard and Boxland's producers supply 75 tons of cardboard.
D)   96 tons of cardboard and Boxland's producers supply 96 tons of cardboard.E) None of the above
F) B) and C)

Question 7

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 is the deadweight loss caused by the tariff?

Accepted Answer

The deadwe...

Question 8

In recent years, which countries have taken a unilateral approach to the removal of trade restrictions?

Accepted Answer

A)   China and North Korea
B)   Chile and South Korea
C)   Russia and Japan
D)   the United States and MexicoE) A) and D)
F) B) and D)

Question 9

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of tricycle helmets within this country, given that tricycles and tricycle helmets are complements?

Accepted Answer

A)   The quantity of tricycles that this country imports would increase.
B)   The quantity of tricycles that this country imports would decrease, but the country would still be an importer of tricycles.
C)   This country would switch from being an importer of tricycles to an exporter of tricycles.
D)   The domestic price without trade would move closer to the world price.E) None of the above
F) B) and D)

Question 10

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26. Suppose the world price in this market is $7. 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 11

Since World War II, GATT has been responsible for reducing the average tariff among member countries from about

Accepted Answer

A)   40 percent to about 5 percent.
B)   40 percent to about 20 percent.
C)   80 percent to about 20 percent.
D)   20 percent to about 10 percent.E) B) and D)
F) A) and B)

Question 12

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

Accepted Answer

A) True 
 B)False

Question 13

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, the

Accepted Answer

A)   price paid by American consumers of peaches is unchanged relative to the no-trade situation.
B)   total well-being of American producers of peaches is diminished relative to the no-trade situation.
C)   total well-being of American consumers of peaches is enhanced relative to the no-trade situation.
D)   total well-being of the United States is enhanced relative to the no-trade situation.E) A) and B)
F) B) and D)

Question 14

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

Question 15

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, the price of peaches in the United States

Accepted Answer

A)   will increase, and this will cause consumer surplus to decrease.
B)   will decrease, and this will cause consumer surplus to increase.
C)   will be unaffected, and consumer surplus will be unaffected as well.
D)   could increase or decrease or be unaffected; this cannot be determined.E) All of the above
F) A) and D)

Question 16

Suppose a country begins to allow international trade in steel. Which of the following outcomes will be observed regardless of whether the country finds itself importing steel or exporting steel?

Accepted Answer

A)   The sum of consumer surplus and producer surplus for domestic traders of steel increases.
B)   The quantity of steel demanded by domestic consumers increases.
C)   Domestic producers of steel receive a higher price for steel.
D)   The losses of the losers exceed the gains of the winners.E) B) and C)
F) None of the above

Question 17

Figure 9-17 
-Refer to Figure 9-17. With free 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 B)
F) A) and C)

Question 18

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

Accepted Answer

A)   will export pecans assuming trade is allowed) .
B)   will import pecans assuming trade is allowed) .
C)   has a comparative advantage in producing pecans.
D)   All of the above are correct.E) All of the above
F) A) and C)

Question 19

Within a country, the domestic price of a product will equal the world price if

Accepted Answer

A)   trade restrictions are imposed on the product.
B)   the country allows free trade.
C)   the country chooses to import, but not export, the product.
D)   the country chooses to export, but not import, the product.E) All of the above
F) B) and C)

Question 20

Figure 9-17 
-Refer to Figure 9-17. The deadweight loss caused by the tariff is

Accepted Answer

A)   $24.
B)   $72.
C)   $96.
D)   $144.E) A) and C)
F) A) and D)

Exam 9: Application: International Trade

Figure 9-17 -Refer to Figure 9-17. With free trade, consumer surplus is

Correct Answer
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Figure 9-17 -Refer to Figure 9-17. The deadweight loss caused by the tariff is

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

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?

Correct Answer
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Nash will ...
View Answer

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

Correct Answer
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Correct Answer
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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, the price of peaches in the United States

Correct Answer
verified

In recent years, which countries have taken a unilateral approach to the removal of trade restrictions?

Correct Answer
verified

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct Answer
verified

Suppose a country begins to allow international trade in steel. Which of the following outcomes will be observed regardless of whether the country finds itself importing steel or exporting steel?

Correct Answer
verified

Within a country, the domestic price of a product will equal the world price if

Correct Answer
verified

Since World War II, GATT has been responsible for reducing the average tariff among member countries from about

Correct Answer
verified

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of tricycle helmets within this country, given that tricycles and tricycle helmets are complements?

Correct Answer
verified

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

Correct Answer
verified

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26. Suppose the world price in this market is $7. 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
The countr...
View Answer

Correct Answer
verified
The deadwe...
View Answer

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

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

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

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, the

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-17 -Refer to Figure 9-17. With free trade, consumer surplus is

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. The deadweight loss caused by the tariff is

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

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?

Correct AnswerverifiedNash will ...View AnswerShow Answer

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

Correct AnswerverifiedShow Answer

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, the price of peaches in the United States

Correct AnswerverifiedShow Answer

In recent years, which countries have taken a unilateral approach to the removal of trade restrictions?

Correct AnswerverifiedShow Answer

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct AnswerverifiedShow Answer

Suppose a country begins to allow international trade in steel. Which of the following outcomes will be observed regardless of whether the country finds itself importing steel or exporting steel?

Correct AnswerverifiedShow Answer

Within a country, the domestic price of a product will equal the world price if

Correct AnswerverifiedShow Answer

Since World War II, GATT has been responsible for reducing the average tariff among member countries from about

Correct AnswerverifiedShow Answer

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of tricycle helmets within this country, given that tricycles and tricycle helmets are complements?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26. Suppose the world price in this market is $7. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported?

Correct AnswerverifiedThe countr...View AnswerShow Answer

Correct AnswerverifiedThe deadwe...View AnswerShow Answer

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

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

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

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, the

Correct AnswerverifiedShow Answer

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Nash will ...
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The countr...
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The deadwe...
View Answer

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