Question 1

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2. With free trade, producer surplus is

Accepted Answer

A)  $845.
B)  $1,620.
C)  $1,690.
D)  $3,240.E) All of the above
F) C) and D)

Question 2

Figure 9-20
The figure illustrates the market for rice in Vietnam. 
-Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Accepted Answer

A)  9,250.
B)  10,000.
C)  12,000.
D)  13,000.E) B) and C)
F) A) and B)

Question 3

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

Question 4

Figure 9-11 
-Refer to Figure 9-11. The change in total surplus in this market because of trade is

Accepted Answer

A)  A, and this area represents a loss of total surplus.
B)  B, and this area represents a gain in total surplus.
C)  C, and this area represents a loss of total surplus.
D)  D, and this area represents a gain in total surplus.E) B) and C)
F) A) and B)

Question 5

Figure 9-24
The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-24. Suppose the government imposes a tariff of $10 per unit. With trade and a tariff, total surplus is

Accepted Answer

A)  $750.
B)  $900.
C)  $950.
D)  $1,550.E) A) and B)
F) B) and C)

Question 6

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 $5, then

Accepted Answer

A)  Isoland has a comparative advantage, relative to other countries, in producing peaches.
B)  Isoland will import peaches.
C)  consumer surplus with trade exceeds consumer surplus without trade.
D)  All of the above are correct.E) A) and B)
F) None of the above

Question 7

The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if

Accepted Answer

A)  consumer surplus equals producer surplus in the Canadian soybean market.
B)  total surplus exceeds consumer surplus in the Canadian soybean market.
C)  Canada permits international trade in soybeans.
D)  Canada forbids international trade in soybeans.E) A) and D)
F) C) and D)

Question 8

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

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

Question 9

Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests

Accepted Answer

A)  Japan has a comparative advantage relative to the United States in producing televisions, and Argentina has a comparative advantage relative to Japan in producing sugar.
B)  Japan has a comparative advantage relative to the United States in producing sugar, and Argentina has a comparative advantage relative to Japan in producing televisions.
C)  Japan has an absolute advantage relative to the United States in producing televisions, and Argentina has an absolute advantage relative to Japan in producing sugar.
D)  Japan has an absolute advantage relative to Argentina in producing sugar, and the United States has an absolute advantage relative to Japan in producing televisions.E) B) and C)
F) None of the above

Question 10

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

Accepted Answer

A)  both domestic producers and domestic consumers become better off.
B)  domestic producers become better off, and domestic consumers become worse off.
C)  domestic producers become worse off, and domestic consumers become better off.
D)  both domestic producers and domestic consumers become worse off.E) B) and C)
F) B) and D)

Question 11

When markets open up to international trade, we know that total surplus will rise.
​

Accepted Answer

A) True 
 B)False

Question 12

At present, the United States uses a system of quotas to limit the amount of sugar imported into the country. Which of the following statements is most likely true?

Accepted Answer

A)  The quotas are probably the result of lobbying from U.S. consumers of sugar. The quotas increase consumer surplus for the United States, reduce producer surplus for the United States, and harm foreign sugar producers.
B)  The quotas are probably the result of lobbying from U.S. producers of sugar. The quotas increase producer surplus for the United States, reduce consumer surplus for the United States, and harm foreign sugar producers.
C)  The quotas are probably the result of lobbying from foreign producers of sugar. The quotas reduce producer surplus for the United States, increase consumer surplus for the United States, and benefit foreign sugar producers.
D)  U.S. lawmakers did not need to be lobbied to impose the quotas because total surplus for the United States is higher with the quotas than without them.E) A) and B)
F) None of the above

Question 13

Figure 9-12 
-Refer to Figure 9-12. With trade, the domestic price and domestic quantity demanded are

Accepted Answer

A)  $54 and 800.
B)  $54 and 1,600.
C)  $42 and 800.
D)  $42 and 1,200.E) B) and C)
F) None of the above

Question 14

Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,

Accepted Answer

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

Question 15

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

Question 16

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Accepted Answer

A)  better off regardless of how Colombia responds.
B)  better off if Colombia removes the subsidies, and will be no worse off if it doesn't.
C)  worse off if Colombia doesn't remove the subsidies in response to the threat.
D)  worse off regardless of how Colombia responds.E) A) and B)
F) All of the above

Question 17

Figure 9-12 
-Refer to Figure 9-12. Consumer surplus after trade is

Accepted Answer

A)  $6,400.
B)  $9,600.
C)  $12,800.
D)  $14,400.E) A) and B)
F) All of the above

Question 18

Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Accepted Answer

A) True 
 B)False

Question 19

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Accepted Answer

A)  that country becomes an exporter of beans.
B)  that country has a comparative advantage in producing beans.
C)  at the world price, the quantity of beans supplied in that country exceeds the quantity of beans demanded in that country.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 20

Using the graph below, answer the following questions about hammers.  
a.What is the equilibrium price of hammers before trade?
b.What is the equilibrium quantity of hammers before trade?
c.What is the price of hammers after trade is allowed?
d.What is the quantity of hammers imported after trade is allowed?
e.What is the amount of consumer surplus before trade?
f. What is the amount of consumer surplus after trade?
g. What is the amount of producer surplus before trade?
h. What is the amount of producer surplus after trade?
i. What is the amount of total surplus before trade?
j. What is the amount of total surplus after trade?
k. What is the change in total surplus because of trade?

Accepted Answer

a.$14
b.90
c.$10
d.8...

Exam 9: Application: International Trade

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Correct Answer
verified

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Correct Answer
verified

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct Answer
verified

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. With free trade, producer surplus 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

Figure 9-11 -Refer to Figure 9-11. The change in total surplus in this market because of trade is

Correct Answer
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Figure 9-12 -Refer to Figure 9-12. With trade, the domestic price and domestic quantity demanded are

Correct Answer
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Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Correct Answer
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Figure 9-12 -Refer to Figure 9-12. Consumer surplus after trade is

Correct Answer
verified

Figure 9-24 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $20 per unit. -Refer to Figure 9-24. Suppose the government imposes a tariff of $10 per unit. With trade and a tariff, total surplus is

Correct Answer
verified

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

Correct Answer
verified

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

Correct Answer
verified

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 $5, then

Correct Answer
verified

When markets open up to international trade, we know that total surplus will rise.

Correct Answer
verified

The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if

Correct Answer
verified

Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,

Correct Answer
verified

Correct Answer
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a.$14
b.90
c.$10
d.8...
View Answer

Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests

Correct Answer
verified

At present, the United States uses a system of quotas to limit the amount of sugar imported into the country. Which of the following statements is most likely true?

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

Exam 9: Application: International Trade

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

Correct AnswerverifiedShow Answer

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Correct AnswerverifiedShow Answer

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct AnswerverifiedShow Answer

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. With free trade, producer surplus 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

Figure 9-11 -Refer to Figure 9-11. The change in total surplus in this market because of trade is

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12. With trade, the domestic price and domestic quantity demanded are

Correct AnswerverifiedShow Answer

Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12. Consumer surplus after trade is

Correct AnswerverifiedShow Answer

Figure 9-24 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $20 per unit. -Refer to Figure 9-24. Suppose the government imposes a tariff of $10 per unit. With trade and a tariff, total surplus is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

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 $5, then

Correct AnswerverifiedShow Answer

When markets open up to international trade, we know that total surplus will rise. ​

Correct AnswerverifiedShow Answer

The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if

Correct AnswerverifiedShow Answer

Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,

Correct AnswerverifiedShow Answer

Correct Answerverifieda.$14b.90c.$10d.8...View AnswerShow Answer

Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests

Correct AnswerverifiedShow Answer

At present, the United States uses a system of quotas to limit the amount of sugar imported into the country. Which of the following statements is most likely true?

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

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Correct Answer
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When markets open up to international trade, we know that total surplus will rise.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.$14
b.90
c.$10
d.8...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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