Question 1

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 $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,

Accepted Answer

A)  domestic producers of cardboard become better off and domestic consumers of cardboard become better off.
B)  domestic producers of cardboard become better off and domestic consumers of cardboard become worse off.
C)  domestic producers of cardboard become worse off and domestic consumers of cardboard become better off.
D)  domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off.E) A) and D)
F) None of the above

Question 2

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

Accepted Answer

A)  ​$4800.
B)  ​$2400.
C)  ​$600.
D)  ​$6000.E) None of the above
F) All of the above

Question 3

Japan imposes a $300 per ton tariff on imported steel,raising the price charged in Japan to $1,000.Using only this information,which of the following statements is correct?

Accepted Answer

A)  The world price for steel is $300.
B)  The world price for steel is $700.
C)  The world price for steel is $1,000.
D)  The world price for steel is $1,300.E) B) and C)
F) A) and B)

Question 4

Figure 9-12 
-Refer to Figure 9-12.With trade,domestic production and domestic consumption,respectively,are

Accepted Answer

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

Question 5

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6.The imposition of a tariff on roses

Accepted Answer

A)  increases the number of roses imported by 100.
B)  increases the number of roses imported by 200.
C)  decreases the number of roses imported by 200.
D)  decreases the number of roses imported by 400.E) B) and C)
F) All of the above

Question 6

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5.Without trade,consumer surplus amounts to

Accepted Answer

A)  $810.
B)  $1,620.
C)  $3,240.
D)  $6,480.E) A) and D)
F) None of the above

Question 7

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1.From the figure it is apparent that

Accepted Answer

A)  Guatemala will experience a shortage of coffee if trade is not allowed.
B)  Guatemala will experience a surplus of coffee if trade is not allowed.
C)  Guatemala has a comparative advantage in producing coffee,relative to the rest of the world.
D)  foreign countries have a comparative advantage in producing coffee,relative to Guatemala.E) All of the above
F) A) and D)

Question 8

If the United States imports televisions and the U.S.government imposes a tariff on televisions,then

Accepted Answer

A)  total surplus in the American television market decreases.
B)  producer surplus in the American television market increases.
C)  U.S.imports of foreign televisions decrease.
D)  All of the above are correct.E) B) and C)
F) None of the above

Question 9

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

Accepted Answer

A)  $3,600.
B)  $5,400.
C)  $7,200.
D)  $8,100.E) A) and D)
F) B) and D)

Question 10

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1.With trade,Guatemala will

Accepted Answer

A)  export 22 units of coffee.
B)  export 10 units of coffee.
C)  import 30 units of coffee.
D)  import 12 units of coffee.E) A) and B)
F) B) and D)

Question 11

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,total surplus is

Accepted Answer

A)  $30,000.
B)  $66,000.
C)  $96,000.
D)  $120,000.E) All of the above
F) A) and B)

Question 12

Turkey is an importer of wheat.The world price of a bushel of wheat is $7.Turkey imposes a $3-per-bushel tariff on wheat.Turkey is a price-taker in the wheat market.As a result of the tariff,

Accepted Answer

A)  Turkish consumers of wheat become worse off and Turkish producers of wheat become worse off.
B)  Turkish consumers of wheat become worse off and Turkish producers of wheat become better off.
C)  Turkish consumers of wheat become better off and Turkish producers of wheat become worse off.
D)  Turkish consumers of wheat become better off and Turkish producers of wheat become better off.E) A) and D)
F) B) and D)

Question 13

Figure 9-17 
-Refer to Figure 9-17.With free trade,the country imports

Accepted Answer

A)  16 units of the good.
B)  24 units of the good.
C)  60 units of the good.
D)  64 units of the good.E) None of the above
F) A) and D)

Question 14

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip.Suppose Denmark removes the tariff.Which of the following outcomes is not possible?

Accepted Answer

A)  More Danish-produced chips are sold in Denmark.
B)  More foreign-produced chips are sold in Denmark.
C)  Danish consumers of chips become better off.
D)  Total surplus in the Danish chip market increases.E) B) and C)
F) A) and C)

Question 15

Mexico has imposed a tariff on the importation of chocolate.As a consequence of the tariff,

Accepted Answer

A)  ​Mexico as a whole is better off,since the tariff increases employment and production in the domestic chocolate industry.
B)  ​Mexico as a whole is better off,since the tariff results in tax revenue for the Mexican government.
C)  ​Mexico as a whole is worse off,since producer surplus and consumer surplus both decrease.
D)  ​Mexico as a whole is worse off,since the increase in producer surplus is smaller than the drop in consumer surplus plus tariff revenues.E) C) and D)
F) A) and D)

Question 16

The world price of a pound of almonds is $4.50.Before Uruguay allowed trade in almonds,the price of a pound of almonds there was $3.00.Once Uruguay began allowing trade in almonds with other countries,Uruguay began

Accepted Answer

A)  exporting almonds and the price per pound in Uruguay remained at $3.00.
B)  exporting almonds and the price per pound in Uruguay increased to $4.50.
C)  importing almonds and the price per pound in Uruguay remained at $3.00.
D)  importing almonds and the price per pound in Uruguay increased to $4.50.E) A) and B)
F) A) and C)

Question 17

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an exporter 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) B) and D)
F) C) and D)

Question 18

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1.In the absence of trade,total surplus in Guatemala 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 B)
F) A) and C)

Question 19

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 D)
F) None of the above

Question 20

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

Accepted Answer

A)  the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good.
B)  the gains of the domestic consumers of the good exceed the losses of the domestic producers of the good.
C)  the losses of the domestic producers of the good exceed the gains of the domestic consumers of the good.
D)  the losses of the domestic consumers of the good exceed the gains of the domestic producers of the good.E) B) and C)
F) A) and D)

Exam 9: Application International Trade: The Winners and Losers From Trade

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

Correct Answer
verified

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6.The imposition of a tariff on roses

Correct Answer
verified

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.With trade,Guatemala will

Correct Answer
verified

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5.Without trade,consumer surplus amounts to

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 9-12 -Refer to Figure 9-12.With trade,domestic production and domestic consumption,respectively,are

Correct Answer
verified

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip.Suppose Denmark removes the tariff.Which of the following outcomes is not possible?

Correct Answer
verified

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

Correct Answer
verified

If the United States imports televisions and the U.S.government imposes a tariff on televisions,then

Correct Answer
verified

Mexico has imposed a tariff on the importation of chocolate.As a consequence of the tariff,

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17.With free trade,the country imports

Correct Answer
verified

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an exporter of a particular good,

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 of the U.S.baseball market to international trade,total surplus is

Correct Answer
verified

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.From the figure it is apparent that

Correct Answer
verified

Japan imposes a $300 per ton tariff on imported steel,raising the price charged in Japan to $1,000.Using only this information,which of the following statements is correct?

Correct Answer
verified

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

Correct Answer
verified

The world price of a pound of almonds is $4.50.Before Uruguay allowed trade in almonds,the price of a pound of almonds there was $3.00.Once Uruguay began allowing trade in almonds with other countries,Uruguay began

Correct Answer
verified

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,total surplus is

Correct Answer
verified

Correct Answer
verified

Turkey is an importer of wheat.The world price of a bushel of wheat is $7.Turkey imposes a $3-per-bushel tariff on wheat.Turkey is a price-taker in the wheat market.As a result of the tariff,

Correct Answer
verified

Exam 9: Application International Trade: The Winners and Losers From Trade

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

Correct AnswerverifiedShow Answer

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6.The imposition of a tariff on roses

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.With trade,Guatemala will

Correct AnswerverifiedShow Answer

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5.Without trade,consumer surplus amounts to

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 9-12 -Refer to Figure 9-12.With trade,domestic production and domestic consumption,respectively,are

Correct AnswerverifiedShow Answer

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip.Suppose Denmark removes the tariff.Which of the following outcomes is not possible?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the United States imports televisions and the U.S.government imposes a tariff on televisions,then

Correct AnswerverifiedShow Answer

Mexico has imposed a tariff on the importation of chocolate.As a consequence of the tariff,

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17.With free trade,the country imports

Correct AnswerverifiedShow Answer

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an exporter of a particular good,

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 of the U.S.baseball market to international trade,total surplus is

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.From the figure it is apparent that

Correct AnswerverifiedShow Answer

Japan imposes a $300 per ton tariff on imported steel,raising the price charged in Japan to $1,000.Using only this information,which of the following statements is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The world price of a pound of almonds is $4.50.Before Uruguay allowed trade in almonds,the price of a pound of almonds there was $3.00.Once Uruguay began allowing trade in almonds with other countries,Uruguay began

Correct AnswerverifiedShow 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,total surplus is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Turkey is an importer of wheat.The world price of a bushel of wheat is $7.Turkey imposes a $3-per-bushel tariff on wheat.Turkey is a price-taker in the wheat market.As a result of the tariff,

Correct AnswerverifiedShow 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

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified