Question 1

Figure 9-1
​
 Uganda
 
-Refer to Figure 9-1. With trade, Uganda will

Accepted Answer

A) export 11 units of coffee. 
B) export 5 units of coffee. 
C) import 15 units of coffee. 
D) import 6 units of coffee. 
A) export 11 units of coffee. 
B) export 5 units of coffee. 
C) import 15 units of coffee. 
D) import 6 units of coffee.

Question 2

Figure 9-6  
-Refer to Figure 9-6. 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. 
A) B. 
B) D + F. 
C) D + E + F. 
D) B + D + E + F.

Question 3

Figure 9-6  
-Refer to Figure 9-6. The area C + D + E + F represents

Accepted Answer

A) the decrease in consumer surplus caused by the tariff. 
B) the decrease in total surplus caused by the tariff. 
C) the deadweight loss of the tariff minus government revenue raised by the tariff. 
D) the deadweight loss of the tariff plus government revenue raised by the tariff. 
A) the decrease in consumer surplus caused by the tariff. 
B) the decrease in total surplus caused by the tariff. 
C) the deadweight loss of the tariff minus government revenue raised by the tariff. 
D) the deadweight loss of the tariff plus government revenue raised by the tariff.

Question 4

Figure 9-6  
-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.

Question 5

Figure 9-1
​
 Uganda
 
-Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

Accepted Answer

A) increases by the area B + D. 
B) increases by the area B + D + G. 
C) decreases by the area C + F. 
D) decreases by the area G. 
A) increases by the area B + D. 
B) increases by the area B + D + G. 
C) decreases by the area C + F. 
D) decreases by the area G.

Question 6

What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Accepted Answer

Arguments mentioned in the text include

Question 7

Figure 9-4  
-Refer to Figure 9-4. When the country for which the figure is drawn allows international trade in crude oil,

Accepted Answer

A) consumer surplus changes from the area A + B + D to the area A. 
B) producer surplus changes from the area C to the area B + C + D. 
C) total surplus decreases by the area D. 
D) consumer surplus changes from the area A to the area A + B. 
A) consumer surplus changes from the area A + B + D to the area A. 
B) producer surplus changes from the area C to the area B + C + D. 
C) total surplus decreases by the area D. 
D) consumer surplus changes from the area A to the area A + B.

Question 8

​The small country assumption is made in developing models of international trade because it applies to US markets.

Accepted Answer

A) True 
 B)False

Question 9

Figure 9-10
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 9-10. Suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, how much is tariff revenue?

Accepted Answer

With trade

Question 10

Figure 9-8
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 9-8. Suppose the country imposes a $5 per unit tariff. If the country allows trade with a tariff, how much are consumer surplus, producer surplus, tariff revenue, and total surplus?

Accepted Answer

With trade and a tariff, consu

Question 11

​Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Accepted Answer

A) True 
 B)False

Question 12

Figure 9-3  
-Refer to Figure 9-3. When the tariff is imposed, domestic consumers

Accepted Answer

A) lose surplus of $400. 
B) lose surplus of $450. 
C) gain surplus of $50. 
D) gain surplus of $800. 
A) lose surplus of $400. 
B) lose surplus of $450. 
C) gain surplus of $50. 
D) gain surplus of $800.

Question 13

Economists feel that national security concerns never provide a legitimate rationale for trade restrictions.

Accepted Answer

A) True 
 B)False

Question 14

Figure 9-6  
-Refer to Figure 9-6. Government revenue raised by the tariff is represented by the area

Accepted Answer

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

Question 15

Figure 9-4  
-Refer to Figure 9-4. Total surplus in this market before trade is

Accepted Answer

A) A + B. 
B) A + B + C. 
C) A + B + C + D. 
D) B + C + D. 
A) A + B. 
B) A + B + C. 
C) A + B + C + D. 
D) B + C + D.

Question 16

Figure 9-8
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 9-8. If the country allows free trade, how many units will domestic consumers demand and how many units will domestic producers produce?

Accepted Answer

With trade, domestic

Question 17

Figure 9-4  
-Refer to Figure 9-4. Producer surplus in this market after trade is

Accepted Answer

A) A. 
B) A + B. 
C) B + C + D. 
D) C. 
A) A. 
B) A + B. 
C) B + C + D. 
D) C.

Question 18

Figure 9-1
​
 Uganda
 
-Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

Accepted Answer

A) increases by the area B + D. 
B) increases by the area C + F. 
C) decreases by the area B + D. 
D) decreases by the area D + G. 
A) increases by the area B + D. 
B) increases by the area C + F. 
C) decreases by the area B + D. 
D) decreases by the area D + G.

Question 19

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 20

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. 
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.

Exam 9: Application: International Trade

Figure 9-1 ​ Uganda -Refer to Figure 9-1. With trade, Uganda will

Figure 9-6 -Refer to Figure 9-6. The deadweight loss created by the tariff is represented by the area

Figure 9-6 -Refer to Figure 9-6. The area C + D + E + F represents

Figure 9-6 -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

Figure 9-1 ​ Uganda -Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Figure 9-4 -Refer to Figure 9-4. When the country for which the figure is drawn allows international trade in crude oil,

​The small country assumption is made in developing models of international trade because it applies to US markets.

​Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Figure 9-3 -Refer to Figure 9-3. When the tariff is imposed, domestic consumers

Economists feel that national security concerns never provide a legitimate rationale for trade restrictions.

Figure 9-6 -Refer to Figure 9-6. Government revenue raised by the tariff is represented by the area

Figure 9-4 -Refer to Figure 9-4. Total surplus in this market before trade is

Figure 9-4 -Refer to Figure 9-4. Producer surplus in this market after trade is

Figure 9-1 ​ Uganda -Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda

A tariff increases the quantity of imports and moves the market farther from its equilibrium without 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

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

Applications: 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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 9-1 Uganda -Refer to Figure 9-1. With trade, Uganda will

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda

The small country assumption is made in developing models of international trade because it applies to US markets.

Imposing a tariff on the import of a good is preferable to a quota because a tariff produces revenue for the government, while a quota never produces any revenue for a government.

Figure 9-1 Uganda -Refer to Figure 9-1. When trade in coffee is allowed, consumer surplus in Uganda