Question 1

When a nation exports a good,its consumer surplus ________,and its producer surplus ________.

Accepted Answer

A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases 
E)  does not change; increases 
A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases 
E)  does not change; increases

Question 2

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Accepted Answer

Yes,there are losers from opening up to

Question 3

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,U.S.domestic production ________ airplanes per year.

Accepted Answer

A)  decreases by 200 
B)  increases by 300 
C)  decreases by 100 
D)  increases by 500 
E)  increases by 200 
A)  decreases by 200 
B)  increases by 300 
C)  decreases by 100 
D)  increases by 500 
E)  increases by 200

Question 4

When a nation exports a good,its ________ surplus decreases and its ________ surplus increases.

Accepted Answer

A)  consumer; producer 
B)  consumer; consumer 
C)  producer; producer 
D)  producer; consumer 
E)  total; consumer 
A)  consumer; producer 
B)  consumer; consumer 
C)  producer; producer 
D)  producer; consumer 
E)  total; consumer

Question 5

How does a quota affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

Accepted Answer

A quota raises the price of the good bec

Question 6

How does the United States attempt to compensate losers from lower trade restrictions?

Accepted Answer

The U.S.government attempts to compensat

Question 7

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to ________ and producer surplus is equal to ________.

Accepted Answer

A)  area A + area B + area C + area D; area E 
B)  area B + area C + area D; area A + area E 
C)  area A; area E 
D)  area C + area D; area B + area E 
E)  area E; area A + area B + area C + area D 
A)  area A + area B + area C + area D; area E 
B)  area B + area C + area D; area A + area E 
C)  area A; area E 
D)  area C + area D; area B + area E 
E)  area E; area A + area B + area C + area D

Question 8

Comparing developed and developing nations in their use of tariffs,we see that

Accepted Answer

A)  the developing nations' governments get very little revenue from tariffs. 
B)  both governments get large amounts of revenue from tariffs. 
C)  many developing nations' governments get a large portion of their revenue from tariffs. 
D)  developing nations almost never impose tariffs because they want their people to obtain goods and services at the lowest possible price. 
E)  developed nations rely much more than developing nations on tariff revenue. 
A)  the developing nations' governments get very little revenue from tariffs. 
B)  both governments get large amounts of revenue from tariffs. 
C)  many developing nations' governments get a large portion of their revenue from tariffs. 
D)  developing nations almost never impose tariffs because they want their people to obtain goods and services at the lowest possible price. 
E)  developed nations rely much more than developing nations on tariff revenue.

Question 9

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

Accepted Answer

A)  500,000 
B)  700,000 
C)  400,000 
D)  900,000 
E)  300,000 
A)  500,000 
B)  700,000 
C)  400,000 
D)  900,000 
E)  300,000

Question 10

How do exports affect buyers' consumer surplus?

Accepted Answer

Consumer surplus decreases.It

Question 11

When a nation exports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

Accepted Answer

A)  increases; decreases; increases 
B)  increases; decreases; decreases 
C)  increases; increases; increases 
D)  decreases; decreases; decreases 
E)  decreases; increases; increases 
A)  increases; decreases; increases 
B)  increases; decreases; decreases 
C)  increases; increases; increases 
D)  decreases; decreases; decreases 
E)  decreases; increases; increases

Question 12

If the United States imposes a tariff on foreign chocolate,how are U.S.producers of chocolate affected?

Accepted Answer

A)  The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases. 
B)  The quantity of chocolate they produce increases. 
C)  The price at which they sell their chocolate falls. 
D)  They are harmed because foreign exporters of chocolate increase their supply in response to the higher price. 
E)  They are unaffected because the quota applies to foreign producers, not to U.S. producers. 
A)  The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases. 
B)  The quantity of chocolate they produce increases. 
C)  The price at which they sell their chocolate falls. 
D)  They are harmed because foreign exporters of chocolate increase their supply in response to the higher price. 
E)  They are unaffected because the quota applies to foreign producers, not to U.S. producers.

Question 13

All of the following statements about the United States are true EXCEPT:

Accepted Answer

A)  The largest imports are services like royalties, license fees, and financial services, and the largest exports are goods like crude oil, automobiles, and clothing. 
B)  The United States is the world's largest international trader. 
C)  The United States imports more than it exports. 
D)  Services account for a larger portion of U.S. exports than U.S. imports. 
E)  Imports are a larger percentage of total expenditure than exports are a percentage of total production. 
A)  The largest imports are services like royalties, license fees, and financial services, and the largest exports are goods like crude oil, automobiles, and clothing. 
B)  The United States is the world's largest international trader. 
C)  The United States imports more than it exports. 
D)  Services account for a larger portion of U.S. exports than U.S. imports. 
E)  Imports are a larger percentage of total expenditure than exports are a percentage of total production.

Question 14

When Italy buys Boeing jets,the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

Accepted Answer

A)  lower than; lower 
B)  higher than; higher 
C)  lower than; higher 
D)  higher than; lower 
E)  the same as; higher 
A)  lower than; lower 
B)  higher than; higher 
C)  lower than; higher 
D)  higher than; lower 
E)  the same as; higher

Question 15

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is ________ per ton.With international trade,the price of wheat in the United States is ________ per ton.

Accepted Answer

A)  $16; $14 
B)  $500; $300 
C)  $14; $16 
D)  $700; $300 
E)  $500; $700 
A)  $16; $14 
B)  $500; $300 
C)  $14; $16 
D)  $700; $300 
E)  $500; $700

Question 16

-The above figure shows the U.S.market for wheat.With international trade,________ is the transfer of surplus from consumers to producers.

Accepted Answer

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

Question 17

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

Accepted Answer

Wage rates must be weighed against produ

Question 18

A nation will import a good if its no-trade,domestic

Accepted Answer

A)  price is equal to the world price. 
B)  price is less than the world price. 
C)  price is greater than the world price. 
D)  quantity is less than the world quantity. 
E)  quantity is greater than the world quantity. 
A)  price is equal to the world price. 
B)  price is less than the world price. 
C)  price is greater than the world price. 
D)  quantity is less than the world quantity. 
E)  quantity is greater than the world quantity.

Question 19

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-Based on the figure above,as a result of international trade,producer surplus

Accepted Answer

A)  increases by $15 billion. 
B)  decreases by $15 billion. 
C)  increases by $27.5 billion. 
D)  decreases by $12.5 billion. 
E)  remains unchanged. 
A)  increases by $15 billion. 
B)  decreases by $15 billion. 
C)  increases by $27.5 billion. 
D)  decreases by $12.5 billion. 
E)  remains unchanged.

Question 20

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

Accepted Answer

A)  better; higher price and greater quantity sold 
B)  better; higher price and smaller quantity sold 
C)  better; lower price and greater quantity sold 
D)  worse; lower price and smaller quantity sold 
E)  worse; higher price and greater quantity sold 
A)  better; higher price and greater quantity sold 
B)  better; higher price and smaller quantity sold 
C)  better; lower price and greater quantity sold 
D)  worse; lower price and smaller quantity sold 
E)  worse; higher price and greater quantity sold

When a nation exports a good,its consumer surplus ,and its producer surplus .

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

When a nation exports a good,its surplus decreases and its surplus increases.

How does a quota affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

How does the United States attempt to compensate losers from lower trade restrictions?

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to and producer surplus is equal to .

Comparing developed and developing nations in their use of tariffs,we see that

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

How do exports affect buyers' consumer surplus?

When a nation exports a good or service,the nation's consumer surplus ,its producer surplus ,and its total surplus .

If the United States imposes a tariff on foreign chocolate,how are U.S.producers of chocolate affected?

All of the following statements about the United States are true EXCEPT:

When Italy buys Boeing jets,the price Italy pays is if it produced its own jets and the price Boeing receives is than it could receive from an additional U.S.buyer.

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is per ton.With international trade,the price of wheat in the United States is per ton.

-The above figure shows the U.S.market for wheat.With international trade,________ is the transfer of surplus from consumers to producers.

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

A nation will import a good if its no-trade,domestic

Relative to free trade,domestic consumers of a good are off with a tariff because of the .

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 9: Global Markets in Action

When a nation exports a good,its consumer surplus ________,and its producer surplus ________.

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

When a nation exports a good,its ________ surplus decreases and its ________ surplus increases.

How does a quota affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

How does the United States attempt to compensate losers from lower trade restrictions?

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to ________ and producer surplus is equal to ________.

Comparing developed and developing nations in their use of tariffs,we see that

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

How do exports affect buyers' consumer surplus?

When a nation exports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

If the United States imposes a tariff on foreign chocolate,how are U.S.producers of chocolate affected?

All of the following statements about the United States are true EXCEPT:

When Italy buys Boeing jets,the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is ________ per ton.With international trade,the price of wheat in the United States is ________ per ton.

-The above figure shows the U.S.market for wheat.With international trade,________ is the transfer of surplus from consumers to producers.

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

A nation will import a good if its no-trade,domestic

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

When a nation exports a good,its consumer surplus ,and its producer surplus .

When a nation exports a good,its surplus decreases and its surplus increases.

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to and producer surplus is equal to .

When a nation exports a good or service,the nation's consumer surplus ,its producer surplus ,and its total surplus .

When Italy buys Boeing jets,the price Italy pays is if it produced its own jets and the price Boeing receives is than it could receive from an additional U.S.buyer.

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is per ton.With international trade,the price of wheat in the United States is per ton.

Relative to free trade,domestic consumers of a good are off with a tariff because of the .