Question 1

Figure 9-6
The figure illustrates the market for roses in a country.  
-Refer to Figure 9-6. The amount of deadweight loss caused by the tariff equals

Accepted Answer

A) $100. 
B) $200. 
C) $400. 
D) $500. 
A) $100. 
B) $200. 
C) $400. 
D) $500.

Question 2

If the United States threatens to impose a tariff on Honduran blueberries if Honduras does not remove agricultural subsidies, the United States will be

Accepted Answer

A) better off no matter how Honduras responds. 
B) better off if Honduras gives in, and will be no worse off if it doesn't. 
C) worse off if Honduras doesn't give in to the threat. 
D) worse off no matter how Honduras responds. 
A) better off no matter how Honduras responds. 
B) better off if Honduras gives in, and will be no worse off if it doesn't. 
C) worse off if Honduras doesn't give in to the threat. 
D) worse off no matter how Honduras responds.

Question 3

The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

Accepted Answer

A) better off, its producers of fish will become better off, and on balance the citizens of Denmark will become better off. 
B) worse off, its producers of fish will become better off, and on balance the citizens of Denmark will become worse off. 
C) Worse off, its producers of fish will become better off, and on balance the citizens of Denmark will become worse off. 
D) better off, its producers of fish will become worse off, and on balance the citizens of Denmark will become better off. 
A) better off, its producers of fish will become better off, and on balance the citizens of Denmark will become better off. 
B) worse off, its producers of fish will become better off, and on balance the citizens of Denmark will become worse off. 
C) Worse off, its producers of fish will become better off, and on balance the citizens of Denmark will become worse off. 
D) better off, its producers of fish will become worse off, and on balance the citizens of Denmark will become better off.

Question 4

Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, the deadweight loss of the tariff is $300 million.

Accepted Answer

A) True 
 B)False

Question 5

Figure 9-15  
-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. 
A) P1 and Q1. 
B) P1 and Q4. 
C) P2 and Q2. 
D) P2 and Q3.

Question 6

Figure 9-12  
-Refer to Figure 9-12. Producer surplus before trade is

Accepted Answer

A) $14,400. 
B) $16,800. 
C) $21,600. 
D) $24,800. 
A) $14,400. 
B) $16,800. 
C) $21,600. 
D) $24,800.

Question 7

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) domestic producers of the good become better off. 
B) domestic consumers of the good become worse off. 
C) the gains of the winners exceed the losses of the losers. 
D) All of the above are correct. 
A) domestic producers of the good become better off. 
B) domestic consumers of the good become worse off. 
C) the gains of the winners exceed the losses of the losers. 
D) All of the above are correct.

Question 9

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

Accepted Answer

A) Consumer surplus decreases by $100; producer surplus increases by $100; and government revenue from the tariff amounts to $50. 
B) Consumer surplus decreases by $200; producer surplus increases by $100; and government revenue from the tariff amounts to $50. 
C) Consumer surplus increases by $100; producer surplus decreases by $200; and government revenue from the tariff amounts to $50. 
D) Consumer surplus decreases by $50; producer surplus increases by $200; and government revenue from the tariff amounts to $150. 
A) Consumer surplus decreases by $100; producer surplus increases by $100; and government revenue from the tariff amounts to $50. 
B) Consumer surplus decreases by $200; producer surplus increases by $100; and government revenue from the tariff amounts to $50. 
C) Consumer surplus increases by $100; producer surplus decreases by $200; and government revenue from the tariff amounts to $50. 
D) Consumer surplus decreases by $50; producer surplus increases by $200; and government revenue from the tariff amounts to $150.

Question 10

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

Accepted Answer

A) producer surplus increases and total surplus increases in the market for that good. 
B) producer surplus increases and total surplus decreases in the market for that good. 
C) producer surplus decreases and total surplus increases in the market for that good. 
D) producer surplus decreases and total surplus decreases in the market for that good. 
A) producer surplus increases and total surplus increases in the market for that good. 
B) producer surplus increases and total surplus decreases in the market for that good. 
C) producer surplus decreases and total surplus increases in the market for that good. 
D) producer surplus decreases and total surplus decreases in the market for that good.

Question 11

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. 
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.

Question 12

Figure 9-17  
-Refer to Figure 9-17. Without trade, total surplus is

Accepted Answer

A) $600. 
B) $1,200. 
C) $1,800. 
D) $2,250. 
A) $600. 
B) $1,200. 
C) $1,800. 
D) $2,250.

Question 13

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit.  
-Refer to Figure 9-29. Suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, how much is total surplus?

Accepted Answer

With trade

Question 14

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. If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is

Accepted Answer

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

Question 15

Free trade allows firms to realize economies of scale, resulting in higher costs of production.

Accepted Answer

A) True 
 B)False

Question 16

What is the fundamental basis for trade among nations?

Accepted Answer

A) shortages or surpluses in nations that do not trade 
B) misguided economic policies 
C) absolute advantage 
D) comparative advantage 
A) shortages or surpluses in nations that do not trade 
B) misguided economic policies 
C) absolute advantage 
D) comparative advantage

Question 17

Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Accepted Answer

A) Total surplus in the domestic country falls. 
B) Producer surplus in the domestic country increases. 
C) The domestic country experiences a deadweight loss. 
D) Revenue is raised for the domestic government. 
A) Total surplus in the domestic country falls. 
B) Producer surplus in the domestic country increases. 
C) The domestic country experiences a deadweight loss. 
D) Revenue is raised for the domestic government.

Question 18

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. 
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.

Question 19

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S.  
-Refer to figure 9-26. After the opening of the U.S. baseball market to international trade, it's possible to conclude that

Accepted Answer

A) ​both U.S. buyers and U.S. sellers are worse off. 
B) ​both U.S. buyers and U.S. sellers are better off. 
C) ​U.S. buyers are better off but U.S. sellers are worse off. 
D) ​U.S. buyers are worse off but U.S. sellers are better off. 
A) ​both U.S. buyers and U.S. sellers are worse off. 
B) ​both U.S. buyers and U.S. sellers are better off. 
C) ​U.S. buyers are better off but U.S. sellers are worse off. 
D) ​U.S. buyers are worse off but U.S. sellers are better off.

Question 20

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Accepted Answer

A) exporting steel and the price per ton in Russia decreased to $650. 
B) exporting steel and the price per ton in Russia remained at $1,000. 
C) importing steel and the price per ton in Russia decreased to $650. 
D) importing steel and the price per ton in Russia remained at $1,000. 
A) exporting steel and the price per ton in Russia decreased to $650. 
B) exporting steel and the price per ton in Russia remained at $1,000. 
C) importing steel and the price per ton in Russia decreased to $650. 
D) importing steel and the price per ton in Russia remained at $1,000.

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The amount of deadweight loss caused by the tariff equals

If the United States threatens to impose a tariff on Honduran blueberries if Honduras does not remove agricultural subsidies, the United States will be

The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, the deadweight loss of the tariff is $300 million.

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

Figure 9-12 -Refer to Figure 9-12. Producer surplus before trade is

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

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

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

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

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

Figure 9-17 -Refer to Figure 9-17. Without trade, total surplus is

Free trade allows firms to realize economies of scale, resulting in higher costs of production.

What is the fundamental basis for trade among nations?

Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

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

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. After the opening of the U.S. baseball market to international trade, it's possible to conclude that

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 9: Application: International Trade

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The amount of deadweight loss caused by the tariff equals

If the United States threatens to impose a tariff on Honduran blueberries if Honduras does not remove agricultural subsidies, the United States will be

The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, the deadweight loss of the tariff is $300 million.

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

Figure 9-12 -Refer to Figure 9-12. Producer surplus before trade is

The nation of Spritzland used to prohibit international trade, but now trade is allowed, and Spritzland is exporting wristwatches. Relative to the previous no-trade situation, total surplus in the market for wristwatches in Spritzland has increased.

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

Suppose a certain country imposes a tariff on a good. Which of the following results of the tariff is possible?

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

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

Figure 9-17 -Refer to Figure 9-17. Without trade, total surplus is

Free trade allows firms to realize economies of scale, resulting in higher costs of production.

What is the fundamental basis for trade among nations?

Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

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

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. After the opening of the U.S. baseball market to international trade, it's possible to conclude that

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. After the opening of the U.S. baseball market to international trade, it's possible to conclude that