Question 1

How does an import quota differ from an equivalent tariff?

Accepted Answer

Both the import quota and the tariff rai

Question 2

According to this statement, if trade in corn is allowed:

Accepted Answer

A) Australia will become an importer of corn 
B) Australia will become an exporter of corn 
C) Australia may become either an importer or an exporter of corn 
D) it is impossible to determine whether Australia will become an importer of corn or an exporter of corn 
A) Australia will become an importer of corn 
B) Australia will become an exporter of corn 
C) Australia may become either an importer or an exporter of corn 
D) it is impossible to determine whether Australia will become an importer of corn or an exporter of corn

Question 3

Graph 9-2
This graph refers to the market for saddles in Argentina.  
-According Graph 9-2, the quantity of saddles exported from Argentina is:

Accepted Answer

A) q₀ minus Q₁ 
B) Q₂ minus Q₁ 
C) Q₂ minus q₀ 
D) q₀ 
A) q₀ minus Q₁ 
B) Q₂ minus Q₁ 
C) Q₂ minus q₀ 
D) q₀

Question 4

Trade among nations is ultimately based on:

Accepted Answer

A) absolute advantage 
B) international trade treaties 
C) comparative advantage 
D) exploitation of weaker countries by more powerful countries 
A) absolute advantage 
B) international trade treaties 
C) comparative advantage 
D) exploitation of weaker countries by more powerful countries

Question 5

The world price is:

Accepted Answer

A) the price that arises in the world market through supply and demand 
B) the lowest price for which a producer will supply a good 
C) the price at which a domestic producer will sell a good in an economy without trade 
D) the price that gives the domestic market a comparative advantage 
A) the price that arises in the world market through supply and demand 
B) the lowest price for which a producer will supply a good 
C) the price at which a domestic producer will sell a good in an economy without trade 
D) the price that gives the domestic market a comparative advantage

Question 6

When the free trade treaty CER was signed between New Zealand and Australia, opponents claimed that New Zealand would suffer significant job losses to more efficient Australian producers.Why would you not be surprised to learn that CER did not lift unemployment in either country?

Accepted Answer

In the short run, both Australia and New

Question 7

Graph 9-1
This graph refers to the market for beef in Japan.  
-According to Graph 9-1, if trade in beef is allowed, Japanese beef:

Accepted Answer

A) consumers and Japanese beef producers will gain 
B) consumers and Japanese beef producers will lose 
C) consumers will gain, and Japanese beef producers will lose 
D) producers will gain, and Japanese beef consumers will lose 
A) consumers and Japanese beef producers will gain 
B) consumers and Japanese beef producers will lose 
C) consumers will gain, and Japanese beef producers will lose 
D) producers will gain, and Japanese beef consumers will lose

Question 8

Graph 9-5
This graph refers to the market for oil in Spain.  
-According to Graph 9-5, the price of oil and the quantity demanded in Spain after trade would be:

Accepted Answer

A) P₁, Q₁ 
B) P₁, Q₂ 
C) P₁, q₀ 
D) P₀, q₀ 
A) P₁, Q₁ 
B) P₁, Q₂ 
C) P₁, q₀ 
D) P₀, q₀

Question 9

When a country allows trade and becomes an importer of a good, consumer surplus:

Accepted Answer

A) and producer surplus will increase 
B) and producer surplus will decrease 
C) will increase and producer surplus will decrease 
D) will decrease and producer surplus will increase 
A) and producer surplus will increase 
B) and producer surplus will decrease 
C) will increase and producer surplus will decrease 
D) will decrease and producer surplus will increase

Question 10

Graph 9-7  
-According to Graph 9-7, domestic production and domestic consumption after trade would be:

Accepted Answer

A) 2400, 2000 
B) 2800, 2000 
C) 2000, 2400 
D) 2000, 2800 
A) 2400, 2000 
B) 2800, 2000 
C) 2000, 2400 
D) 2000, 2800

Question 11

Graph 9-8  
-According to Graph 9-8, producer surplus after trade would be:

Accepted Answer

A) $900 
B) $1100 
C) $1500 
D) $2000 
A) $900 
B) $1100 
C) $1500 
D) $2000

Exam 9: Application: International Trade

How does an import quota differ from an equivalent tariff?

According to this statement, if trade in corn is allowed:

Graph 9-2 This graph refers to the market for saddles in Argentina. -According Graph 9-2, the quantity of saddles exported from Argentina is:

Trade among nations is ultimately based on:

The world price is:

When the free trade treaty CER was signed between New Zealand and Australia, opponents claimed that New Zealand would suffer significant job losses to more efficient Australian producers.Why would you not be surprised to learn that CER did not lift unemployment in either country?

Graph 9-1 This graph refers to the market for beef in Japan. -According to Graph 9-1, if trade in beef is allowed, Japanese beef:

Graph 9-5 This graph refers to the market for oil in Spain. -According to Graph 9-5, the price of oil and the quantity demanded in Spain after trade would be:

When a country allows trade and becomes an importer of a good, consumer surplus:

Graph 9-7 -According to Graph 9-7, domestic production and domestic consumption after trade would be:

Graph 9-8 -According to Graph 9-8, producer surplus after trade would be:

Ten Lessons From 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

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

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 Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

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