Question 1

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

Question 2

If a country allows free trade and its domestic price for a given good is lower than the world price,then it will import that good.

Accepted Answer

A) True 
 B)False

Question 3

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland.
  
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Accepted Answer

A)  producer surplus will be smaller than it would be if Isoland banned trade. 
B)  consumer surplus will be smaller than it would be if Isoland banned trade. 
C)  the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied. 
D)  Isoland will be an importer of peaches. 
A)  producer surplus will be smaller than it would be if Isoland banned trade. 
B)  consumer surplus will be smaller than it would be if Isoland banned trade. 
C)  the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied. 
D)  Isoland will be an importer of peaches.

Question 4

Figure 9-17
  
-Refer to Figure 9-17.With trade and a tariff,consumer surplus is

Accepted Answer

A)  $808 and producer surplus is $200. 
B)  $808 and producer surplus is $392. 
C)  $1,024 and producer surplus is $200. 
D)  $1,024 and producer surplus is $392. 
A)  $808 and producer surplus is $200. 
B)  $808 and producer surplus is $392. 
C)  $1,024 and producer surplus is $200. 
D)  $1,024 and producer surplus is $392.

Question 5

When,in our analysis of the gains and losses from international trade,we assume that a country is small,we are in effect assuming that the country

Accepted Answer

A)  cannot experience significant gains or losses by trading with other countries. 
B)  cannot have a significant comparative advantage over other countries. 
C)  cannot affect world prices by trading with other countries. 
D)  All of the above are correct. 
A)  cannot experience significant gains or losses by trading with other countries. 
B)  cannot have a significant comparative advantage over other countries. 
C)  cannot affect world prices by trading with other countries. 
D)  All of the above are correct.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

Accepted Answer

A)  Pineland has a comparative advantage, relative to other countries, in producing fish. 
B)  other countries have a comparative advantage, relative to Pineland, in producing pineapples. 
C)  the price of pineapples in Pineland exceeds the world price of pineapples. 
D)  if Pineland were to allow trade, it would import fish. 
A)  Pineland has a comparative advantage, relative to other countries, in producing fish. 
B)  other countries have a comparative advantage, relative to Pineland, in producing pineapples. 
C)  the price of pineapples in Pineland exceeds the world price of pineapples. 
D)  if Pineland were to allow trade, it would import fish.

Question 8

Suppose Haiti has an absolute advantage over other countries in producing oranges,but other countries have a comparative advantage over Haiti in producing oranges.If trade in oranges is allowed,Haiti

Accepted Answer

A)  will import oranges. 
B)  will export oranges. 
C)  will either export oranges or export oranges, but it is not clear from the given information. 
D)  would have nothing to gain either from exporting or importing oranges. 
A)  will import oranges. 
B)  will export oranges. 
C)  will either export oranges or export oranges, but it is not clear from the given information. 
D)  would have nothing to gain either from exporting or importing oranges.

Question 9

If the Korean steel industry subsidizes the steel that it sells to the United States,the

Accepted Answer

A)  United States should protect its domestic steel industry from this unfair competition. 
B)  harm done to U.S. steel producers from this unfair competition exceeds the gain to U.S. consumers of cheap Korean steel. 
C)  harm done to U.S. steel producers is less than the benefit that accrues to U.S. consumers of steel. 
D)  United States should subsidize the products it sells to Korea. 
A)  United States should protect its domestic steel industry from this unfair competition. 
B)  harm done to U.S. steel producers from this unfair competition exceeds the gain to U.S. consumers of cheap Korean steel. 
C)  harm done to U.S. steel producers is less than the benefit that accrues to U.S. consumers of steel. 
D)  United States should subsidize the products it sells to Korea.

Question 10

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Accepted Answer

A)  consumer surplus equals producer surplus in the Wheatland corn market. 
B)  total surplus exceeds consumer surplus in the Wheatland corn market. 
C)  Wheatland permits international trade in corn. 
D)  Wheatland forbids international trade in corn. 
A)  consumer surplus equals producer surplus in the Wheatland corn market. 
B)  total surplus exceeds consumer surplus in the Wheatland corn market. 
C)  Wheatland permits international trade in corn. 
D)  Wheatland forbids international trade in corn.

Question 11

Import quotas and tariffs both cause the quantity of imports to fall.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  consumer surplus and producer surplus both increase. 
B)  consumer surplus and producer surplus both decrease. 
C)  consumer surplus increases and producer surplus decreases. 
D)  consumer surplus decreases and producer surplus increases. 
A)  consumer surplus and producer surplus both increase. 
B)  consumer surplus and producer surplus both decrease. 
C)  consumer surplus increases and producer surplus decreases. 
D)  consumer surplus decreases and producer surplus increases.

Question 13

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 14

Figure 9-10. The figure applies to Mexico and the good is rifles.
  
-Refer to Figure 9-10.The area bounded by the points (Q₀,P₀),(Q₂,P₁),and (Q₁,P₁)represents

Accepted Answer

A)  Mexico's gains from trade. 
B)  the amount by which Mexico's gain in consumer surplus exceeds its loss in producer surplus due to trade. 
C)  Mexico's gain in total surplus due to trade. 
D)  All of the above are correct. 
A)  Mexico's gains from trade. 
B)  the amount by which Mexico's gain in consumer surplus exceeds its loss in producer surplus due to trade. 
C)  Mexico's gain in total surplus due to trade. 
D)  All of the above are correct.

Question 15

When a country that imports a particular good imposes an import quota on that 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. 
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 16

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 and international trade is allowed.Then Boxland's consumers demand

Accepted Answer

A)  110 tons of cardboard and Boxland's producers supply 120 tons of cardboard. 
B)  96 tons of cardboard and Boxland's producers supply 96 tons of cardboard. 
C)  96 tons of cardboard and Boxland's producers supply 115 tons of cardboard. 
D)  80 tons of cardboard and Boxland's producers supply 120 tons of cardboard. 
A)  110 tons of cardboard and Boxland's producers supply 120 tons of cardboard. 
B)  96 tons of cardboard and Boxland's producers supply 96 tons of cardboard. 
C)  96 tons of cardboard and Boxland's producers supply 115 tons of cardboard. 
D)  80 tons of cardboard and Boxland's producers supply 120 tons of cardboard.

Question 17

Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil.
  
-Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,

Accepted Answer

A)  consumer surplus for domestic crude-oil consumers decreases. 
B)  the demand for crude oil by domestic crude-oil consumers decreases. 
C)  the losses of the domestic losers outweigh the gains of the domestic winners. 
D)  domestic crude-oil producers sell less crude oil. 
A)  consumer surplus for domestic crude-oil consumers decreases. 
B)  the demand for crude oil by domestic crude-oil consumers decreases. 
C)  the losses of the domestic losers outweigh the gains of the domestic winners. 
D)  domestic crude-oil producers sell less crude oil.

Question 18

When a country that imports a particular good imposes a tariff on that 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. 
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 19

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 $45 and international trade is allowed.Then Boxland's consumers demand

Accepted Answer

A)  110 tons of cardboard and Boxland's producers supply 75 tons of cardboard. 
B)  110 tons of cardboard and Boxland's producers supply 96 tons of cardboard. 
C)  96 tons of cardboard and Boxland's producers supply 75 tons of cardboard. 
D)  96 tons of cardboard and Boxland's producers supply 96 tons of cardboard. 
A)  110 tons of cardboard and Boxland's producers supply 75 tons of cardboard. 
B)  110 tons of cardboard and Boxland's producers supply 96 tons of cardboard. 
C)  96 tons of cardboard and Boxland's producers supply 75 tons of cardboard. 
D)  96 tons of cardboard and Boxland's producers supply 96 tons of cardboard.

Question 20

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland.
  
-Refer to Figure 9-18.If Isoland allows international trade and if the world price of peaches is $5,then

Accepted Answer

A)  Isoland has a comparative advantage, relative to other countries, in producing peaches. 
B)  Isoland will import peaches. 
C)  consumer surplus with trade exceeds consumer surplus without trade. 
D)  All of the above are correct. 
A)  Isoland has a comparative advantage, relative to other countries, in producing peaches. 
B)  Isoland will import peaches. 
C)  consumer surplus with trade exceeds consumer surplus without trade. 
D)  All of the above are correct.

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

If a country allows free trade and its domestic price for a given good is lower than the world price,then it will import that good.

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Figure 9-17 -Refer to Figure 9-17.With trade and a tariff,consumer surplus is

When,in our analysis of the gains and losses from international trade,we assume that a country is small,we are in effect assuming that the country

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

The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

Suppose Haiti has an absolute advantage over other countries in producing oranges,but other countries have a comparative advantage over Haiti in producing oranges.If trade in oranges is allowed,Haiti

If the Korean steel industry subsidizes the steel that it sells to the United States,the

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Import quotas and tariffs both cause the quantity of imports to fall.

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

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

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀),(Q₂,P₁),and (Q₁,P₁)represents

When a country that imports a particular good imposes an import quota on that good,

Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. -Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,

When a country that imports a particular good imposes a tariff on that good,

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and if the world price of peaches is $5,then

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

If a country allows free trade and its domestic price for a given good is lower than the world price,then it will import that good.

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

Figure 9-17 -Refer to Figure 9-17.With trade and a tariff,consumer surplus is

When,in our analysis of the gains and losses from international trade,we assume that a country is small,we are in effect assuming that the country

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

The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

Suppose Haiti has an absolute advantage over other countries in producing oranges,but other countries have a comparative advantage over Haiti in producing oranges.If trade in oranges is allowed,Haiti

If the Korean steel industry subsidizes the steel that it sells to the United States,the

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Import quotas and tariffs both cause the quantity of imports to fall.

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

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

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀),(Q₂,P₁),and (Q₁,P₁)represents

When a country that imports a particular good imposes an import quota on that good,

Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. -Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,

When a country that imports a particular good imposes a tariff on that good,

Figure 9-18. On the diagram below, Q represents the quantity of peaches and P represents the price of peaches. The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade and if the world price of peaches is $5,then

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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters