Question 1

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) None of the above

Question 2

Figure 9-15 
-Refer to Figure 9-15.For the saddle market,area E represents

Accepted Answer

A)   government's revenue from the tariff.
B)   producer surplus after the tariff becomes effective.
C)   the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff.
D)   the decrease in total surplus,relative to the free-trade situation,as a result of the tariff.E) B) and C)
F) A) and B)

Question 3

Characterize the two different approaches a nation can take to achieve free trade.Does one approach have an advantage over the other?

Accepted Answer

A unilateral approach is when a country ...

Question 4

Figure 9-15 1 and Q1. B)  P1 and Q4. C)  P2 and Q2. D)  P2 and Q3." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-15.With the tariff,the domestic price and domestic quantity demanded are

Accepted Answer

A)   P1 and Q1.
B)   P1 and Q4.
C)   P2 and Q2.
D)   P2 and Q3.E) A) and C)
F) B) and C)

Question 5

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

Accepted Answer

A)   will import oranges.
B)   will export oranges.
C)   will either export oranges or export oranges,but it is not clear from the given information.
D)   would have nothing to gain either from exporting or importing oranges.E) C) and D)
F) B) and C)

Question 6

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) A) and C)

Question 7

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade,thus reducing the gains from trade.

Accepted Answer

A) True 
 B)False

Question 8

If the demand curve and the supply curve for a good are straight lines,then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by

Accepted Answer

A)   the area of one triangle.
B)   the area of one rectangle.
C)   the combined areas of two different triangles.
D)   the combined areas of two different rectangles.E) A) and C)
F) None of the above

Question 9

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1.In the absence of trade,total surplus in Scotland is represented by the area

Accepted Answer

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

Question 10

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Accepted Answer

A) True 
 B)False

Question 11

The nation of Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing rice,exporting steel,and neither importing nor exporting TVs.We can conclude that producer surplus in Aquilonia is now

Accepted Answer

A)   higher in the steel market,lower in the rice market,and unchanged in the TV market.
B)   higher in the rice and steel markets,and unchanged in the TV market.
C)   lower in the rice and TV markets,and higher in the steel market.
D)   lower in the rice and steel markets,and the same in the TV market.E) B) and D)
F) A) and B)

Question 12

Figure 9-5 
-Refer to Figure 9-5.With trade,this country

Accepted Answer

A)   exports 20 wagons.
B)   exports 50 wagons.
C)   imports 30 wagons.
D)   imports 50 wagons.E) None of the above
F) B) and D)

Question 13

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

Accepted Answer

A)   $1,224.
B)   $1,416.
C)   $1,512.
D)   $1,704.E) B) and C)
F) A) and D)

Question 14

Figure 9-20
The figure illustrates the market for rice in Vietnam. 
-Refer to Figure 9-20.Given that Vietnam is a small country,it is apparent from the figure that

Accepted Answer

A)   Vietnam will export rice if trade is allowed.
B)   Vietnam will import rice if trade is allowed.
C)   Vietnam has nothing to gain either by importing or exporting rice.
D)   the world price will fall if Vietnam begins to allow its citizens to trade with other countries.E) C) and D)
F) B) and D)

Question 15

Figure 9-4
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 9-4.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 16

Suppose the United States exports cars to Switzerland and imports cheese from France.This situation suggests

Accepted Answer

A)   the United States has a comparative advantage relative to France in producing cheese,and Switzerland has a comparative advantage to the United States in producing cars.
B)   the United States has a comparative advantage relative to Switzerland in producing cars,and France has a comparative advantage relative to the United States in producing cheese.
C)   the United States has an absolute advantage relative to Switzerland in producing cars,and France has an absolute advantage relative to the United States in producing cheese.
D)   the United States has an absolute advantage relative to France in producing cheese,and Switzerland has an absolute advantage relative to the United States in producing cars.E) B) and D)
F) B) and C)

Question 17

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

Accepted Answer

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

Question 18

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 19

Honduras is an importer of goose-down pillows.The world price of these pillows is $50.Honduras imposes a $7 tariff on pillows.Honduras is a price-taker in the pillow market.As a result of the tariff,the price of goose-down pillows in Honduras

Accepted Answer

A)   remains at $50 and the quantity of goose-down pillows purchased in Honduras decreases.
B)   increases to $57 and the quantity of goose-down pillows purchased in Honduras decreases.
C)   increases to a new price between $50 and $57 and the quantity of goose-down pillows purchased in Honduras decreases.
D)   increases to a new price above $57 and the quantity of goose-down pillows purchased in Honduras remains the same.E) A) and D)
F) B) and C)

Question 20

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.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $3,then the policy change results in a

Accepted Answer

A)   $15.00 decrease in producer surplus.
B)   $45.00 increase in consumer surplus.
C)   $20.00 increase in total surplus.
D)   $12.50 increase in total surplus.E) C) and D)
F) A) and B)

Exam 9: Application: International Trade

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.In the absence of trade,total surplus in Scotland is represented by the area

Correct Answer
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The nation of Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing rice,exporting steel,and neither importing nor exporting TVs.We can conclude that producer surplus in Aquilonia is now

Correct Answer
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Figure 9-17 -Refer to Figure 9-17.With trade and a tariff,total surplus is

Correct Answer
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Correct Answer
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The deadwe...
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Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents

Correct Answer
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Figure 9-5 -Refer to Figure 9-5.With trade,this country

Correct Answer
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Honduras is an importer of goose-down pillows.The world price of these pillows is $50.Honduras imposes a $7 tariff on pillows.Honduras is a price-taker in the pillow market.As a result of the tariff,the price of goose-down pillows in Honduras

Correct Answer
verified

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Correct Answer
verified

If the demand curve and the supply curve for a good are straight lines,then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by

Correct Answer
verified

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade,thus reducing the gains from trade.

Correct Answer
verified

Correct Answer
verified

Characterize the two different approaches a nation can take to achieve free trade.Does one approach have an advantage over the other?

Correct Answer
verified
A unilateral approach is when a country ...
View Answer

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

Correct Answer
verified

Suppose the United States exports cars to Switzerland and imports cheese from France.This situation suggests

Correct Answer
verified

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

Correct Answer
verified

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20.Given that Vietnam is a small country,it is apparent from the figure that

Correct Answer
verified

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

Correct Answer
verified

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

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
verified
Jumanji wi...
View Answer

Figure 9-15 -Refer to Figure 9-15.With the tariff,the domestic price and domestic quantity demanded are

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.In the absence of trade,total surplus in Scotland is represented by the area

Correct AnswerverifiedShow Answer

The nation of Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing rice,exporting steel,and neither importing nor exporting TVs.We can conclude that producer surplus in Aquilonia is now

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe deadwe...View AnswerShow Answer

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5.With trade,this country

Correct AnswerverifiedShow Answer

Honduras is an importer of goose-down pillows.The world price of these pillows is $50.Honduras imposes a $7 tariff on pillows.Honduras is a price-taker in the pillow market.As a result of the tariff,the price of goose-down pillows in Honduras

Correct AnswerverifiedShow Answer

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Correct AnswerverifiedShow Answer

If the demand curve and the supply curve for a good are straight lines,then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by

Correct AnswerverifiedShow Answer

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade,thus reducing the gains from trade.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Characterize the two different approaches a nation can take to achieve free trade.Does one approach have an advantage over the other?

Correct AnswerverifiedA unilateral approach is when a country ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Suppose the United States exports cars to Switzerland and imports cheese from France.This situation suggests

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20.Given that Vietnam is a small country,it is apparent from the figure that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Figure 9-15 -Refer to Figure 9-15.With the tariff,the domestic price and domestic quantity demanded are

Correct AnswerverifiedShow Answer

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The deadwe...
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A unilateral approach is when a country ...
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Jumanji wi...
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