Question 1

Figure 9-6
  
-Refer to Figure 9-6.Without trade,what would producer surplus be

Accepted Answer

A) $210 
B) $245 
C) $450 
D) $490 
A) $210 
B) $245 
C) $450 
D) $490

Question 2

According to the graph,answer the following questions about hammocks.​
  
a.What is the equilibrium price of hammocks before trade
b.What is the equilibrium quantity of hammocks before trade
c.What is the price of hammocks after trade is allowed
d.What is the quantity of hammocks exported
e.What is the amount of consumer surplus before trade
f.What is the amount of consumer surplus after trade
g.What is the amount of producer surplus before trade
h.What is the amount of producer surplus after trade
i.What is the amount of total surplus before trade
j.What is the amount of total surplus after trade
k.What is the change in total surplus because of trade

Accepted Answer

a.$12
b.50
c.$15
d.3

Question 3

When a country allows trade and becomes an exporter of a good,which of the following will NOT result

Accepted Answer

A) The price paid by domestic consumers of the good increases. 
B) The price received by domestic producers of the good increases. 
C) The losses of domestic consumers exceed the gains of domestic producers. 
D) The gains of domestic producers exceed the losses of domestic consumers. 
A) The price paid by domestic consumers of the good increases. 
B) The price received by domestic producers of the good increases. 
C) The losses of domestic consumers exceed the gains of domestic producers. 
D) The gains of domestic producers exceed the losses of domestic consumers.

Question 4

Figure 9-9
  
-Refer to Figure 9-9.What is the change in total surplus in this market because of trade

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 5

Figure 9-3
  
-Figure 9-3 represents the domestic hoverboard market in Canada.What would be the equilibrium price and the equilibrium quantity of hoverboards in Canada before trade

Accepted Answer

A) P₀, Q₀ 
B) P₁, Q₂ 
C) P₁, Q₁ 
D) P₀, Q₁ 
A) P₀, Q₀ 
B) P₁, Q₂ 
C) P₁, Q₁ 
D) P₀, Q₁

Question 6

Figure 9-10
  
-Refer to Figure 9-10.What would be the price and domestic quantity demanded after trade

Accepted Answer

A) $8 and 300 
B) $8 and 900 
C) $14 and 600 
D) $14 and 900 
A) $8 and 300 
B) $8 and 900 
C) $14 and 600 
D) $14 and 900

Question 7

How does trade raise the economic well-being of a nation

Accepted Answer

A) The gains of the winners exceed the losses of the losers. 
B) Everyone in an economy gains from trade. 
C) Since countries can choose what products to trade, they will pick those products that are most beneficial to society. 
D) Trade increases a country's gross domestic product (GDP). 
A) The gains of the winners exceed the losses of the losers. 
B) Everyone in an economy gains from trade. 
C) Since countries can choose what products to trade, they will pick those products that are most beneficial to society. 
D) Trade increases a country's gross domestic product (GDP).

Question 8

When a government imposes a tariff on a product,the domestic price will equal the world price.

Accepted Answer

A) True 
 B)False

Question 9

Figure 9-8
  
-Figure 9-8 shows the domestic market for solar panels in Germany.What would be the price and quantity of solar panels in Germany before trade

Accepted Answer

A) P₀, Q₀ 
B) P₁, Q₀ 
C) P₁, Q₁ 
D) P₂, Q₂ 
A) P₀, Q₀ 
B) P₁, Q₀ 
C) P₁, Q₁ 
D) P₂, Q₂

Question 10

Figure 9-7
  
-Refer to Figure 9-7.If trade in shoes is allowed in Korea,what will happen to consumer surplus and producer surplus

Accepted Answer

A) Consumer surplus will increase, and producer surplus will decrease. 
B) Consumer surplus will decrease, and producer surplus will increase. 
C) Producer surplus and consumer surplus will increase. 
D) Producer surplus and consumer surplus will be unaffected. 
A) Consumer surplus will increase, and producer surplus will decrease. 
B) Consumer surplus will decrease, and producer surplus will increase. 
C) Producer surplus and consumer surplus will increase. 
D) Producer surplus and consumer surplus will be unaffected.

Question 11

Figure 9-2
  
-Refer to Figure 9-2.Without trade,what would producer surplus in China be

Accepted Answer

A) $600 
B) $900 
C) $1000 
D) $1200 
A) $600 
B) $900 
C) $1000 
D) $1200

Question 12

When Canada engages in international trade with the United Kingdom,who reaps the economic benefits

Accepted Answer

A) The United Kingdom reaps economic benefits and Canada loses. 
B) Both the United Kingdom and Canada reap economic benefits. 
C) It is an equal tradeoff, so neither country benefits or loses. 
D) The United Kingdom loses and Canada reaps economic benefits. 
A) The United Kingdom reaps economic benefits and Canada loses. 
B) Both the United Kingdom and Canada reap economic benefits. 
C) It is an equal tradeoff, so neither country benefits or loses. 
D) The United Kingdom loses and Canada reaps economic benefits.

Question 13

Figure 9-6
  
-Refer to Figure 9-6.If this country chooses to trade,what would be the price of wagons in this country and how many would be sold domestically

Accepted Answer

A) $5 and 40 wagons would be sold domestically 
B) $5 and 50 wagons would be sold domestically 
C) $5 and 90 wagons would be sold domestically 
D) $8 and 70 wagons would be sold domestically 
A) $5 and 40 wagons would be sold domestically 
B) $5 and 50 wagons would be sold domestically 
C) $5 and 90 wagons would be sold domestically 
D) $8 and 70 wagons would be sold domestically

Question 14

Which of the following is NOT an advantage to a multilateral approach to free trade over a unilateral approach

Accepted Answer

A) A multilateral approach can reduce trade restrictions abroad as well as at home. 
B) A multilateral approach has the potential to result in freer trade. 
C) A multilateral approach may lead to more restricted trade if the negotiations fail. 
D) A multilateral approach may have political advantages. 
A) A multilateral approach can reduce trade restrictions abroad as well as at home. 
B) A multilateral approach has the potential to result in freer trade. 
C) A multilateral approach may lead to more restricted trade if the negotiations fail. 
D) A multilateral approach may have political advantages.

Question 15

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing cinnamon,exporting steel,and neither importing nor exporting rugs.What can we conclude about consumer surplus in Aquilonia

Accepted Answer

A) It is now higher for steel, lower for cinnamon, and the same for rugs. 
B) It is now higher for cinnamon and steel, but not rugs. 
C) It is now higher for cinnamon and rugs, but not steel. 
D) It is now higher for cinnamon, lower for steel, and the same for rugs. 
A) It is now higher for steel, lower for cinnamon, and the same for rugs. 
B) It is now higher for cinnamon and steel, but not rugs. 
C) It is now higher for cinnamon and rugs, but not steel. 
D) It is now higher for cinnamon, lower for steel, and the same for rugs.

Question 16

What is one reason for the decline in the Canadian textile industry

Accepted Answer

A) foreign competition 
B) an increase in raw material prices 
C) a decrease in Canadian demand for clothing 
D) the enactment of the Canadian minimum wage law 
A) foreign competition 
B) an increase in raw material prices 
C) a decrease in Canadian demand for clothing 
D) the enactment of the Canadian minimum wage law

Question 17

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

According to the graph shown,answer the following questions about solar panels.
 
a.What is the equilibrium price of solar panels before trade
b.What is the equilibrium quantity of solar panels before trade
c.What is the price of solar panels after trade is allowed
d.What is the quantity of solar panels imported
e.What is the amount of consumer surplus before trade
f.What is the amount of consumer surplus after trade
g.What is the amount of producer surplus before trade
h.What is the amount of producer surplus after trade
i.What is the amount of total surplus before trade
j.What is the amount of total surplus after trade
k.What is the change in total surplus because of trade

Accepted Answer

a.$14
b.90
c.$10
d.8

Question 20

Figure 9-10
  
-Refer to Figure 9-10.How many units of this product would be imported after trade

Accepted Answer

A) 300 
B) 600 
C) 900 
D) 1200 
A) 300 
B) 600 
C) 900 
D) 1200

Figure 9-6 -Refer to Figure 9-6.Without trade,what would producer surplus be

When a country allows trade and becomes an exporter of a good,which of the following will NOT result

Figure 9-9 -Refer to Figure 9-9.What is the change in total surplus in this market because of trade

Figure 9-3 -Figure 9-3 represents the domestic hoverboard market in Canada.What would be the equilibrium price and the equilibrium quantity of hoverboards in Canada before trade

Figure 9-10 -Refer to Figure 9-10.What would be the price and domestic quantity demanded after trade

How does trade raise the economic well-being of a nation

When a government imposes a tariff on a product,the domestic price will equal the world price.

Figure 9-8 -Figure 9-8 shows the domestic market for solar panels in Germany.What would be the price and quantity of solar panels in Germany before trade

Figure 9-7 -Refer to Figure 9-7.If trade in shoes is allowed in Korea,what will happen to consumer surplus and producer surplus

Figure 9-2 -Refer to Figure 9-2.Without trade,what would producer surplus in China be

When Canada engages in international trade with the United Kingdom,who reaps the economic benefits

Figure 9-6 -Refer to Figure 9-6.If this country chooses to trade,what would be the price of wagons in this country and how many would be sold domestically

Which of the following is NOT an advantage to a multilateral approach to free trade over a unilateral approach

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing cinnamon,exporting steel,and neither importing nor exporting rugs.What can we conclude about consumer surplus in Aquilonia

What is one reason for the decline in the Canadian textile industry

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

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

Figure 9-10 -Refer to Figure 9-10.How many units of this product would be imported after trade

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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Exam 9: Application: International Trade

Figure 9-6 -Refer to Figure 9-6.Without trade,what would producer surplus be

When a country allows trade and becomes an exporter of a good,which of the following will NOT result

Figure 9-9 -Refer to Figure 9-9.What is the change in total surplus in this market because of trade

Figure 9-3 -Figure 9-3 represents the domestic hoverboard market in Canada.What would be the equilibrium price and the equilibrium quantity of hoverboards in Canada before trade

Figure 9-10 -Refer to Figure 9-10.What would be the price and domestic quantity demanded after trade

How does trade raise the economic well-being of a nation

When a government imposes a tariff on a product,the domestic price will equal the world price.

Figure 9-8 -Figure 9-8 shows the domestic market for solar panels in Germany.What would be the price and quantity of solar panels in Germany before trade

Figure 9-7 -Refer to Figure 9-7.If trade in shoes is allowed in Korea,what will happen to consumer surplus and producer surplus

Figure 9-2 -Refer to Figure 9-2.Without trade,what would producer surplus in China be

When Canada engages in international trade with the United Kingdom,who reaps the economic benefits

Figure 9-6 -Refer to Figure 9-6.If this country chooses to trade,what would be the price of wagons in this country and how many would be sold domestically

Which of the following is NOT an advantage to a multilateral approach to free trade over a unilateral approach

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing cinnamon,exporting steel,and neither importing nor exporting rugs.What can we conclude about consumer surplus in Aquilonia

What is one reason for the decline in the Canadian textile industry

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

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

Figure 9-10 -Refer to Figure 9-10.How many units of this product would be imported after trade

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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters