Question 1

​There are only increases in total surplus when a country exports a good, since more units of the country's output of that good are produced.

Accepted Answer

A) True 
 B)False

Question 2

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

Accepted Answer

A) True 
 B)False

Question 3

Figure 9-4  
-Refer to Figure 9-4. Total surplus in this market after 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 4

Figure 9-7
The following diagram shows the domestic demand and domestic supply curves in a market.   ​
-Refer to Figure 9-7. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

Accepted Answer

Consumer surplus is

Question 5

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

Accepted Answer

A) True 
 B)False

Question 6

The world price of cotton is the highest price of cotton observed anywhere in the world.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 the deadweight loss caused by the tariff?

Accepted Answer

The deadwe

Question 9

Figure 9-3  
-Refer to Figure 9-3. The size of the tariff on roses is

Accepted Answer

A) $4. 
B) $3. 
C) $2. 
D) $1. 
A) $4. 
B) $3. 
C) $2. 
D) $1.

Question 10

​Imposing a quota on the import of a good is preferable to a tariff because a tariff creates a deadweight loss while a quota does not.

Accepted Answer

A) True 
 B)False

Question 11

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Accepted Answer

A) True 
 B)False

Question 12

Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.

Accepted Answer

A) True 
 B)False

Question 13

Figure 9-5  
-Refer to Figure 9-5. Consumer surplus in this market after trade is

Accepted Answer

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

Question 14

Figure 9-6  
-Refer to Figure 9-6. The tariff

Accepted Answer

A) decreases producer surplus by the area C, decreases consumer surplus by the area C + D + E, and decreases total surplus by the area D + F. 
B) increases producer surplus by the area C, decreases consumer surplus by the area C + D + E + F, and decreases total surplus by the area D + F. 
C) creates government revenue represented by the area B + E and decreases total surplus by the area D + E + F. 
D) increases producer surplus by the area C + G and creates government revenue represented by the area D + E + F. 
A) decreases producer surplus by the area C, decreases consumer surplus by the area C + D + E, and decreases total surplus by the area D + F. 
B) increases producer surplus by the area C, decreases consumer surplus by the area C + D + E + F, and decreases total surplus by the area D + F. 
C) creates government revenue represented by the area B + E and decreases total surplus by the area D + E + F. 
D) increases producer surplus by the area C + G and creates government revenue represented by the area D + E + F.

Question 15

Scenario 9-2
Suppose domestic demand and domestic supply in a market are given by the following equations: $$\begin{array} { l } 
Q ^ { D } = 20 - P \
Q ^ { S } = P
\end{array}$$ ​
-Refer to Scenario 9-2. Suppose the world price in this market is $8 per unit, and suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, how much is the deadweight loss caused by the tariff?

Accepted Answer

The deadwe

Question 16

For Country A, the world price of textiles exceeds the domestic equilibrium price of textiles. As a result, international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience.

Accepted Answer

A) True 
 B)False

Question 17

William and Jamal live in the country of Dumexia. When Dumexia legalized international trade in bananas, the price of bananas in Dumexia increased. As a result, William became better off and Jamal became worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

Accepted Answer

A) True 
 B)False

Question 18

Figure 9-3  
-Refer to Figure 9-3. 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 500. 
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 500.

Question 19

Figure 9-6  
-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. 
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.

Question 20

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 are consumer surplus and producer surplus?

Accepted Answer

With trade and a tar

Exam 9: Application: International Trade

​There are only increases in total surplus when a country exports a good, since more units of the country's output of that good are produced.

The results of a 2008 Los Angeles Times poll suggest that the percentage of Americans who believe trade is harmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy.

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

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. ​ -Refer to Figure 9-7. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy.

The world price of cotton is the highest price of cotton observed anywhere in the world.

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 9-3 -Refer to Figure 9-3. The size of the tariff on roses is

​Imposing a quota on the import of a good is preferable to a tariff because a tariff creates a deadweight loss while a quota does not.

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.

Figure 9-5 -Refer to Figure 9-5. Consumer surplus in this market after trade is

Figure 9-6 -Refer to Figure 9-6. The tariff

For Country A, the world price of textiles exceeds the domestic equilibrium price of textiles. As a result, international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience.

William and Jamal live in the country of Dumexia. When Dumexia legalized international trade in bananas, the price of bananas in Dumexia increased. As a result, William became better off and Jamal became worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

Figure 9-3 -Refer to Figure 9-3. The imposition of a tariff on roses

Figure 9-6 -When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

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

There are only increases in total surplus when a country exports a good, since more units of the country's output of that good are produced.

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-7. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

Imposing a quota on the import of a good is preferable to a tariff because a tariff creates a deadweight loss while a quota does not.