Question 1

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-28. Suppose the world price in this market is $6. 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 2

When, in our analysis of the gains and losses from international trade, we assume that a particular country is small, we are

Accepted Answer

A)  assuming the domestic price before trade will continue to prevail once that country is opened up to trade with other countries.
B)  assuming there is no demand for that country's domestically-produced goods by other countries.
C)  assuming international trade can benefit producers, but not consumers, in that country.
D)  making an assumption that is not necessary to analyze the gains and losses from international trade.E) A) and C)
F) A) and B)

Question 3

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. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland?

Accepted Answer

A)  It increases consumer surplus, decreases producer surplus, and increases total surplus.
B)  It increases consumer surplus, increases producer surplus, and increases total surplus.
C)  It increases consumer surplus, decreases producer surplus, and decreases total surplus.
D)  It decreases consumer surplus, increases producer surplus, and increases total surplus.E) All of the above
F) A) and D)

Question 4

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) All of the above

Question 5

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 United States

Accepted Answer

A)  will become an importer of peaches.
B)  will become an exporter of peaches.
C)  may become either an importer or an exporter of peaches, but this cannot be determined.
D)  will experience increases in both consumer surplus and producer surplus.E) B) and D)
F) A) and C)

Question 6

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

Question 7

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

Accepted Answer

With trade, consumer surplus i...

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. With free trade, consumer surplus is

Accepted Answer

A)  $48,000 and producer surplus is $48,000.
B)  $18,000 and producer surplus is $12,000.
C)  $108,000 and producer surplus is $12,000.
D)  $18,000 and producer surplus is $48,000.E) A) and D)
F) B) and C)

Question 9

Figure 9-3. The domestic country is China. 
-Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Accepted Answer

A)  $400.
B)  $500.
C)  $600.
D)  $750.E) B) and D)
F) B) and C)

Question 10

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S. 
-Refer to figure 9-26. Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is​

Accepted Answer

A)  ​$16
B)  $12​
C)  $10
D)  ​$8E) B) and D)
F) B) and C)

Question 11

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5. With trade, the price of tricycles in this country is

Accepted Answer

A)  $11, with 200 tricycles produced in this country and another 320 tricycles imported.
B)  $11, with 360 tricycles produced in this country and another 160 tricycles imported.
C)  $19, with 200 tricycles produced in this country and another 160 tricycles imported.
D)  $19, with 360 tricycles produced in this country and another 320 tricycles imported.E) All of the above
F) A) and C)

Question 12

In principle, trade can make a nation better off, because the gains to the winners exceed the losses to the losers.

Accepted Answer

A) True 
 B)False

Question 13

The price of a good that prevails in a world market is called the

Accepted Answer

A)  absolute price.
B)  relative price.
C)  comparative price.
D)  world price.E) B) and C)
F) A) and B)

Question 14

A tariff on a product

Accepted Answer

A)  is a direct quantitative restriction on the amount of a good that can be imported.
B)  increases the domestic quantity supplied.
C)  increases domestic consumer surplus.
D)  All of the above are correct.E) All of the above
F) B) and D)

Question 15

Suppose Ukraine subsidizes Ukrainian wheat farmers, while Russia offers no subsidy to Russian wheat farmers. As a result of the Ukrainian subsidy, sales of Ukrainian wheat to Russia

Accepted Answer

A)  may prompt Russian farmers to invoke the infant-industry argument.
B)  increase the consumer surplus of Russian buyers of wheat.
C)  decrease the total surplus of the Russian people.
D)  All of the above are correct.E) None of the above
F) B) and D)

Question 16

Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,

Accepted Answer

A)  Japan has a comparative advantage over other countries and Japan will import automobiles.
B)  Japan has a comparative advantage over other countries and Japan will export automobiles.
C)  other countries have a comparative advantage over Japan and Japan will import automobiles.
D)  other countries have a comparative advantage over Japan and Japan will export automobiles.E) A) and D)
F) B) and C)

Question 17

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S. 
-Refer to Figure 9-26. As a result of opening up the baseball market to international trade, the U.S. will​

Accepted Answer

A)  ​import 600 baseballs.
B)  ​export 300 baseballs.
C)  ​import 400 baseballs.
D)  ​export 600 baseballs.E) A) and C)
F) A) and B)

Question 18

Figure 9-7. The figure applies to the nation of Wales and the good is cheese. 2 - Q1 units of cheese. B) exports Q2 - Q1 units of cheese. C) imports Q2 - Q0 units of cheese. D) exports Q2 - Q0 units of cheese." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-7. With trade, Wales

Accepted Answer

A)  imports Q2 - Q1 units of cheese.
B)  exports Q2 - Q1 units of cheese.
C)  imports Q2 - Q0 units of cheese.
D)  exports Q2 - Q0 units of cheese.E) All of the above
F) B) and C)

Question 19

Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television there was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began

Accepted Answer

A)  importing televisions and the price of a television in Paraguay decreased to $300.
B)  importing televisions and the price of a television in Paraguay remained at $350.
C)  exporting televisions and the price of a television in Paraguay decreased to $300.
D)  exporting televisions and the price of a television in Paraguay remained at $350.E) None of the above
F) B) and D)

Question 20

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

Accepted Answer

A) True 
 B)False

Exam 9: Application: International Trade

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. With trade, the price of tricycles in this country is

Correct Answer
verified

In principle, trade can make a nation better off, because the gains to the winners exceed the losses to the losers.

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to Figure 9-26. As a result of opening up the baseball market to international trade, the U.S. will

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

Correct Answer
verified
With trade, consumer surplus i...
View Answer

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. With free trade, consumer surplus is

Correct Answer
verified

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

Correct Answer
verified

Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,

Correct Answer
verified

Correct Answer
verified

The price of a good that prevails in a world market is called the

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 United States

Correct Answer
verified

A tariff on a product

Correct Answer
verified

Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television there was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began

Correct Answer
verified

Suppose Ukraine subsidizes Ukrainian wheat farmers, while Russia offers no subsidy to Russian wheat farmers. As a result of the Ukrainian subsidy, sales of Ukrainian wheat to Russia

Correct Answer
verified

Figure 9-7. The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7. With trade, Wales

Correct Answer
verified

When, in our analysis of the gains and losses from international trade, we assume that a particular country is small, we are

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

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

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. Suppose the world price in this market is $6. 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

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. With trade, the price of tricycles in this country is

Correct AnswerverifiedShow Answer

In principle, trade can make a nation better off, because the gains to the winners exceed the losses to the losers.

Correct AnswerverifiedShow Answer

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is​

Correct AnswerverifiedShow Answer

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to Figure 9-26. As a result of opening up the baseball market to international trade, the U.S. will​

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

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

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. With free trade, consumer surplus is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The price of a good that prevails in a world market is called the

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 United States

Correct AnswerverifiedShow Answer

A tariff on a product

Correct AnswerverifiedShow Answer

Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television there was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began

Correct AnswerverifiedShow Answer

Suppose Ukraine subsidizes Ukrainian wheat farmers, while Russia offers no subsidy to Russian wheat farmers. As a result of the Ukrainian subsidy, sales of Ukrainian wheat to Russia

Correct AnswerverifiedShow Answer

Figure 9-7. The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7. With trade, Wales

Correct AnswerverifiedShow Answer

When, in our analysis of the gains and losses from international trade, we assume that a particular country is small, we are

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

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off.

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. Suppose the world price in this market is $6. 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

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to Figure 9-26. As a result of opening up the baseball market to international trade, the U.S. will

Correct Answer
verified

Correct Answer
verified
With trade, consumer surplus i...
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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The countr...
View Answer

Correct Answer
verified