Question 1

A country exports the goods

Accepted Answer

A)  for which its domestic prices are very high compared to the world prices. 
B)  that the economy can produce the most of. 
C)  that the economy can produce at relatively lowest opportunity cost. 
D)  that it cannot sell domestically. 
E)  in which it has a comparative disadvantage. 
A)  for which its domestic prices are very high compared to the world prices. 
B)  that the economy can produce the most of. 
C)  that the economy can produce at relatively lowest opportunity cost. 
D)  that it cannot sell domestically. 
E)  in which it has a comparative disadvantage.

Question 2

When a nation exports a good or service,employment in that industry

Accepted Answer

A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change. 
A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.

Question 3

Once international trade occurs,a country with a comparative advantage in the production of a good will ________ production of the good and ________.

Accepted Answer

A)  decrease; import the good 
B)  increase; export the good 
C)  not change; import the good 
D)  increase; import the good 
E)  decrease; export the good 
A)  decrease; import the good 
B)  increase; export the good 
C)  not change; import the good 
D)  increase; import the good 
E)  decrease; export the good

Question 4

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts.
-The figure above shows that as a result of the tariff,producer surplus in the United States

Accepted Answer

A)  decreases by $105 million per year. 
B)  increases by $55 million per year. 
C)  decreases by $30 million per year. 
D)  decreases by $20 million per year. 
E)  remains unchanged. 
A)  decreases by $105 million per year. 
B)  increases by $55 million per year. 
C)  decreases by $30 million per year. 
D)  decreases by $20 million per year. 
E)  remains unchanged.

Question 5

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the total exports of cherries from the United States to other nations equals

Accepted Answer

A)  200,000 pounds. 
B)  400,000 pounds. 
C)  600,000 pounds. 
D)  800,000 pounds. 
E)  0 pounds. 
A)  200,000 pounds. 
B)  400,000 pounds. 
C)  600,000 pounds. 
D)  800,000 pounds. 
E)  0 pounds.

Question 6

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to ________ and the price U.S.consumers pay ________ compared to the price paid when there was free trade.

Accepted Answer

A)  $2; decreases 
B)  $14; decreases 
C)  $2; increases 
D)  $12; increases 
E)  $14; increases 
A)  $2; decreases 
B)  $14; decreases 
C)  $2; increases 
D)  $12; increases 
E)  $14; increases

Question 7

When the United States imposes a tariff on an imported good,the

Accepted Answer

A)  price of the good in the United States falls. 
B)  quantity of the good purchased in the United States decreases. 
C)  quantity of the good produced in the United States decreases. 
D)  outcome becomes more efficient. 
E)  amount imported increases. 
A)  price of the good in the United States falls. 
B)  quantity of the good purchased in the United States decreases. 
C)  quantity of the good produced in the United States decreases. 
D)  outcome becomes more efficient. 
E)  amount imported increases.

Question 8

The imposition of a quota ________ domestic production,________ imports,and ________ domestic purchases.

Accepted Answer

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

Question 9

Imports ________ consumer surplus,________ producer surplus,and ________ total surplus.

Accepted Answer

A)  decrease; decrease; decrease 
B)  increase; increase; increase 
C)  increase; decrease; decrease 
D)  increase; decrease; increase 
E)  decrease; increase; increase 
A)  decrease; decrease; decrease 
B)  increase; increase; increase 
C)  increase; decrease; decrease 
D)  increase; decrease; increase 
E)  decrease; increase; increase

Question 10

One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost compared with firms in other nations in the production of such aircraft.

Accepted Answer

A)  a higher 
B)  an unrelated 
C)  a lower 
D)  a nonexistent 
E)  an identical 
A)  a higher 
B)  an unrelated 
C)  a lower 
D)  a nonexistent 
E)  an identical

Question 11

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 12

After NAFTA was signed,the United States allowed more tomatoes to be imported from Mexico.What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?

Accepted Answer

The price

Question 13

-According to the above table,the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.

Accepted Answer

A)  $4; $4 
B)  $6; $6 
C)  $8; $4 
D)  $10; $10 
E)  $4; $8 
A)  $4; $4 
B)  $6; $6 
C)  $8; $4 
D)  $10; $10 
E)  $4; $8

Question 14

When a nation starts importing a good or service,domestic employment in that industry

Accepted Answer

A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country imports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country exports is needed to determine if employment increases, decreases, or does not change. 
A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country imports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country exports is needed to determine if employment increases, decreases, or does not change.

Question 15

The figure above shows the U.S. market for T-shirts, 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 a T-shirt is $5.
-Based on the figure above,international trade leads to

Accepted Answer

A)  a net gain of surplus of $60 million. 
B)  a net loss of surplus of $60 million. 
C)  a net gain of surplus of $90 million. 
D)  a net loss of surplus of $90 million. 
E)  no net gain or loss of surplus. 
A)  a net gain of surplus of $60 million. 
B)  a net loss of surplus of $60 million. 
C)  a net gain of surplus of $90 million. 
D)  a net loss of surplus of $90 million. 
E)  no net gain or loss of surplus.

Question 16

When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.

Accepted Answer

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

A country exports the goods

When a nation exports a good or service,employment in that industry

Once international trade occurs,a country with a comparative advantage in the production of a good will production of the good and .

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the total exports of cherries from the United States to other nations equals

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to and the price U.S.consumers pay compared to the price paid when there was free trade.

When the United States imposes a tariff on an imported good,the

The imposition of a quota domestic production, imports,and domestic purchases.

Imports consumer surplus, producer surplus,and total surplus.

One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost compared with firms in other nations in the production of such aircraft.

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

After NAFTA was signed,the United States allowed more tomatoes to be imported from Mexico.What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?

-According to the above table,the country will import the good if the world price is less than and will export the good if the world price is more than .

When a nation starts importing a good or service,domestic employment in that industry

The figure above shows the U.S. market for T-shirts, 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 a T-shirt is $5. -Based on the figure above,international trade leads to

When a good is imported,the domestic production of it and the domestic consumption of it .

Getting Started

The Usand 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

A country exports the goods

When a nation exports a good or service,employment in that industry

Once international trade occurs,a country with a comparative advantage in the production of a good will ________ production of the good and ________.

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the total exports of cherries from the United States to other nations equals

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to ________ and the price U.S.consumers pay ________ compared to the price paid when there was free trade.

When the United States imposes a tariff on an imported good,the

The imposition of a quota ________ domestic production,________ imports,and ________ domestic purchases.

Imports ________ consumer surplus,________ producer surplus,and ________ total surplus.

One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost compared with firms in other nations in the production of such aircraft.

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

After NAFTA was signed,the United States allowed more tomatoes to be imported from Mexico.What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?

-According to the above table,the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.

When a nation starts importing a good or service,domestic employment in that industry

The figure above shows the U.S. market for T-shirts, 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 a T-shirt is $5. -Based on the figure above,international trade leads to

When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.

Getting Started

The Usand 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

Once international trade occurs,a country with a comparative advantage in the production of a good will production of the good and .

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to and the price U.S.consumers pay compared to the price paid when there was free trade.

The imposition of a quota domestic production, imports,and domestic purchases.

Imports consumer surplus, producer surplus,and total surplus.

-According to the above table,the country will import the good if the world price is less than and will export the good if the world price is more than .

When a good is imported,the domestic production of it and the domestic consumption of it .