Question 1

For a given country,comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Accepted Answer

A) True 
 B)False  False

Question 2

Figure 9-11 
-Refer to Figure 9-11.Consumer surplus in this market after trade is

Accepted Answer

A)  A.
B)  C + B.
C)  A + B + D.
D)  B + C + D.E) None of the above
F) All of the above

Question 3

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. 
-Refer to Figure 9-16.The tariff

Accepted Answer

A)  decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
B)  decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F.
C)  increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
D)  increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F.E) A) and D)
F) A) and C)

Question 4

For a small country called Boxland, the equation of the domestic demand curve for cardboard is
 QD=200−2PQ ^ { D } = 200 - 2 P QD=200−2P 	
where QDQ ^ { D }QD  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
 QS=−60+3PQ ^ { S } = - 60 + 3 PQS=−60+3P  	
where QSQ ^ { S }QS  represents the domestic quantity of cardboard supplied, in tons, and   again represents the price of a ton of cardboard.
-Refer to Scenario 9-2.If Boxland prohibits international trade in cardboard,then the equilibrium price of a ton of cardboard is

Accepted Answer

A)  36 dollars and the equilibrium quantity of cardboard is 74 tons.
B)  44 dollars and the equilibrium quantity of cardboard is 88 tons.
C)  52 dollars and the equilibrium quantity of cardboard is 96 tons.
D)  60 dollars and the equilibrium quantity of cardboard is 100 tons. E) A) and C)
F) A) and B)

Question 5

Figure 9-15 2 - Q1. B) Q3 - Q2. C) Q4 - Q3. D) Q4 - Q3 + Q2 - Q1." class="answers-bank-image d-inline" rel="preload" >

-Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Accepted Answer

A)  Q2 - Q1.
B)  Q3 - Q2.
C)  Q4 - Q3.
D)  Q4 - Q3 + Q2 - Q1.E) C) and D)
F) A) and D)

Question 6

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Accepted Answer

A)  national-security argument.
B)  infant-industry argument.
C)  unfair-competition argument.
D)  jobs argument.E) A) and C)
F) All of the above

Question 7

In September 2009,China took steps toward imposing tariffs on American exports of

Accepted Answer

A)  automotive products and chicken in response to President Obama's decision to impose tariffs on toys imported from China.
B)  airplanes and beef in response to President Obama's decision to impose tariffs on toys imported from China.
C)  automotive products and chicken in response to President Obama's decision to impose tariffs on tires imported from China.
D)  airplanes and beef in response to President Obama's decision to impose tariffs on tires imported from China.E) A) and D)
F) A) and C)

Question 8

A possible outcome of the multilateral approach to free trade is that such an approach can

Accepted Answer

A)  win political support when a unilateral approach cannot.
B)  result in more restricted trade than under a unilateral approach,when international negotiations fail.
C)  result in drastic reductions in tariffs for many countries.
D)  All of the above are correct.E) B) and C)
F) A) and B) D

Question 9

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 trade and without a tariff,the 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 D)
F) C) and D)

Question 10

The General Agreement on Tariffs and Trade (GATT) was initiated in response to

Accepted Answer

A)  in increase in exports of low-priced goods from developing countries to developed countries.
B)  the replacement of manufacturing jobs with service jobs in developed countries.
C)  economic dislocations caused by the North American Free Trade Agreement (NAFT
A)  in the 1990s.
D)  high tariffs imposed during the Great Depression of the 1930s.E) All of the above
F) B) and C)

Question 11

For a country that is considering the adoption of either a tariff or an import quota on a particular good,an important difference is that

Accepted Answer

A)  an import quota has no effect on consumer surplus,while a tariff decreases consumer surplus.
B)  an import quota has no effect on producer surplus,while a tariff decreases producer surplus.
C)  a tariff raises total surplus,while an import quota does not.
D)  a tariff raises revenue for that country's government,while an import quota does not.E) C) and D)
F) A) and D)

Question 12

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 B)
F) A) and C)

Question 13

Figure 9-4.The domestic country is Nicaragua. 
-Refer to Figure 9-4.With trade,Nicaragua

Accepted Answer

A)  imports 150 calculators.
B)  imports 250 calculators.
C)  exports 100 calculators.
D)  exports 250 calculators.E) B) and C)
F) A) and D)

Question 14

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. 
-Refer to Figure 9-16.The deadweight loss created by the tariff is represented by the area

Accepted Answer

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

Question 15

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1.Relative to the no-trade situation,trade with the rest of the world results in

Accepted Answer

A)  Scotland consumers paying a higher price for wool.
B)  a decrease in producer surplus in Scotland.
C)  a decrease in total surplus in Scotland.
D)  All of the above are correct.E) A) and B)
F) C) and D) A

Question 16

A tariff is a

Accepted Answer

A)  limit on how much of a good can be exported.
B)  limit on how much of a good can be imported.
C)  tax on an exported good.
D)  tax on an imported good.E) C) and D)
F) B) and D)

Question 17

How does an import quota differ from an equivalent tariff?

Accepted Answer

Both the import quota and the tariff rai...

Question 18

When a nation first begins to trade with other countries and the nation becomes an importer of corn,

Accepted Answer

A)  this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade.
B)  this is an indication that the nation has a comparative advantage in producing corn.
C)  the nation's consumers of corn become better off and the nation's producers of corn become worse off.
D)  All of the above are correct.E) All of the above
F) C) and D)

Question 19

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following arguments for trade restrictions is often advanced?

Accepted Answer

A)  Trade restrictions make all Americans better off.
B)  Trade restrictions increase economic efficiency.
C)  Trade restrictions are necessary for economic growth.
D)  Trade restrictions are sometimes necessary for national security.E) All of the above
F) A) and B)

Exam 9: Application: International Trade

For a given country,comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Correct Answer
verified
False

Figure 9-11 -Refer to Figure 9-11.Consumer surplus in this market after trade is

Correct Answer
verified

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.The tariff

Correct Answer
verified

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Correct Answer
verified

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Correct Answer
verified

In September 2009,China took steps toward imposing tariffs on American exports of

Correct Answer
verified

A possible outcome of the multilateral approach to free trade is that such an approach can

Correct Answer
verified
D

Figure 9-15 -Refer to Figure 9-15.With trade and without a tariff,the price and domestic quantity demanded are

Correct Answer
verified

The General Agreement on Tariffs and Trade (GATT) was initiated in response to

Correct Answer
verified

For a country that is considering the adoption of either a tariff or an import quota on a particular good,an important difference is that

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

Figure 9-4.The domestic country is Nicaragua. -Refer to Figure 9-4.With trade,Nicaragua

Correct Answer
verified

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.The deadweight loss created by the tariff is represented by the area

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.Relative to the no-trade situation,trade with the rest of the world results in

Correct Answer
verified
A

A tariff is a

Correct Answer
verified

How does an import quota differ from an equivalent tariff?

Correct Answer
verified
Both the import quota and the tariff rai...
View Answer

When a nation first begins to trade with other countries and the nation becomes an importer of corn,

Correct Answer
verified

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct Answer
verified

Which of the following arguments for trade restrictions is often advanced?

Correct Answer
verified

Exam 9: Application: International Trade

For a given country,comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Correct AnswerverifiedFalse

Figure 9-11 -Refer to Figure 9-11.Consumer surplus in this market after trade is

Correct AnswerverifiedShow Answer

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.The tariff

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Correct AnswerverifiedShow Answer

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Correct AnswerverifiedShow Answer

In September 2009,China took steps toward imposing tariffs on American exports of

Correct AnswerverifiedShow Answer

A possible outcome of the multilateral approach to free trade is that such an approach can

Correct AnswerverifiedD

Figure 9-15 -Refer to Figure 9-15.With trade and without a tariff,the price and domestic quantity demanded are

Correct AnswerverifiedShow Answer

The General Agreement on Tariffs and Trade (GATT) was initiated in response to

Correct AnswerverifiedShow Answer

For a country that is considering the adoption of either a tariff or an import quota on a particular good,an important difference is that

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

Figure 9-4.The domestic country is Nicaragua. -Refer to Figure 9-4.With trade,Nicaragua

Correct AnswerverifiedShow Answer

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.The deadweight loss created by the tariff is represented by the area

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.Relative to the no-trade situation,trade with the rest of the world results in

Correct AnswerverifiedA

A tariff is a

Correct AnswerverifiedShow Answer

How does an import quota differ from an equivalent tariff?

Correct AnswerverifiedBoth the import quota and the tariff rai...View AnswerShow Answer

When a nation first begins to trade with other countries and the nation becomes an importer of corn,

Correct AnswerverifiedShow Answer

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct AnswerverifiedShow Answer

Which of the following arguments for trade restrictions is often advanced?

Correct AnswerverifiedShow Answer

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False

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D

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A

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Both the import quota and the tariff rai...
View Answer

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