Question 1

Figure 9-2
  
-Refer to Figure 9-2.What is China's position regarding pencil sharpeners in the world market

Accepted Answer

A) It has a comparative advantage in pencil sharpeners. 
B) It cannot be competitive in the world market. 
C) It would be better off if the world price for pencil sharpeners and its pre-trade price were equal. 
D) It has an absolute advantage in pencil sharpeners. 
A) It has a comparative advantage in pencil sharpeners. 
B) It cannot be competitive in the world market. 
C) It would be better off if the world price for pencil sharpeners and its pre-trade price were equal. 
D) It has an absolute advantage in pencil sharpeners.

Question 2

Deadweight loss measures the decrease in total surplus that results from a tariff.

Accepted Answer

A) True 
 B)False

Question 3

Figure 9-11
  
-Refer to Figure 9-11.What is the size of the tariff on carnations

Accepted Answer

A) $2 
B) $4 
C) $6 
D) $8 
A) $2 
B) $4 
C) $6 
D) $8

Question 4

Figure 9-12
  
-Refer to Figure 9-12.As a result of the tariff,what would government revenue be

Accepted Answer

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

Question 5

Using the graph,assume that the government imposes a $1 tariff on solar panels.Answer the following questions given this information.
 
​a.What is the domestic price and quantity demanded of solar panels after the tariff is imposed
b.What is the quantity of solar panels imported before the tariff
c.What is the quantity of solar panels imported after the tariff
d.What would be the amount of consumer surplus before the tariff
e.What would be the amount of consumer surplus after the tariff
f.What would be the amount of producer surplus before the tariff
g.What would be the amount of producer surplus after the tariff
h.What would be the amount of government revenue because of the tariff
i.What would be the total amount of deadweight loss due to the tarif

Accepted Answer

a.$6,84
b.66
c.44
d.

Question 6

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

Accepted Answer

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

Question 7

Figure 9-4
  
-Refer to Figure 9-4.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 8

Figure 9-6
  
-Refer to Figure 9-6.With free trade,what would consumer surplus be

Accepted Answer

A) $245.00 
B) $303.75 
C) $450.00 
D) $607.50 
A) $245.00 
B) $303.75 
C) $450.00 
D) $607.50

Question 9

Suppose Canada threatens to impose a tariff on German cars if Germany does not remove agricultural subsidies.How will Canada end up

Accepted Answer

A) better off, no matter how Germany responds 
B) better off, if Germany gives in to the threat, and will be no worse off if it doesn't 
C) worse off, if Germany doesn't give in to the threat 
D) worse off, no matter how Germany responds 
A) better off, no matter how Germany responds 
B) better off, if Germany gives in to the threat, and will be no worse off if it doesn't 
C) worse off, if Germany doesn't give in to the threat 
D) worse off, no matter how Germany responds

Question 10

What is a quota

Accepted Answer

A) a tax placed on imports 
B) a limit on the quantity of imports 
C) a tax on exports to other countries 
D) the value of net exports 
A) a tax placed on imports 
B) a limit on the quantity of imports 
C) a tax on exports to other countries 
D) the value of net exports

Question 11

Figure 9-3
  
-Figure 9-3 represents the domestic hoverboard market in Canada.What would be the price and quantity demanded of hoverboards in Canada after 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 12

Who do countries protect when they impose restrictions on free foreign trade

Accepted Answer

A) foreign producers 
B) foreign consumers 
C) domestic producers 
D) domestic consumers 
A) foreign producers 
B) foreign consumers 
C) domestic producers 
D) domestic consumers

Question 13

Figure 9-3
  
-Figure 9-3 represents the domestic hoverboard market in Canada.What is the quantity of hoverboards exported from Canada

Accepted Answer

A) 0 
B) (Q₀ - Q₁) 
C) (Q₂ - Q₀) 
D) (Q₂ - Q₁) 
A) 0 
B) (Q₀ - Q₁) 
C) (Q₂ - Q₀) 
D) (Q₂ - Q₁)

Question 14

When will the domestic price of a product equal the world price

Accepted Answer

A) when the domestic supply of the product increases 
B) when trade restrictions are imposed on the product 
C) if the government imposes trade restrictions 
D) if neither trading country has a comparative advantage in the production of the good 
A) when the domestic supply of the product increases 
B) when trade restrictions are imposed on the product 
C) if the government imposes trade restrictions 
D) if neither trading country has a comparative advantage in the production of the good

Question 15

Figure 9-5
  
-Figure 9-5 shows the domestic market for calculators in Haiti.What would Haiti do

Accepted Answer

A) export 100 calculators 
B) import 150 calculators 
C) import 250 calculators 
D) export 300 calculators 
A) export 100 calculators 
B) import 150 calculators 
C) import 250 calculators 
D) export 300 calculators

Question 16

When does a country have a comparative advantage in a product

Accepted Answer

A) when the world price is lower than its domestic price 
B) when the world price is higher than its domestic price 
C) when a country can produce a larger quantity of the product 
D) when a country has better technology to produce the product 
A) when the world price is lower than its domestic price 
B) when the world price is higher than its domestic price 
C) when a country can produce a larger quantity of the product 
D) when a country has better technology to produce the product

Question 17

For any country,if the world price of computers is higher than the domestic price of computers,should that country export or import computers

Accepted Answer

A) export computers, since that country has a comparative advantage in computers 
B) import computers, since that country has a comparative advantage in computers 
C) not trade computers, since that country cannot gain from trade 
D) not trade computers, since they already produce computers more cheaply than other countries 
A) export computers, since that country has a comparative advantage in computers 
B) import computers, since that country has a comparative advantage in computers 
C) not trade computers, since that country cannot gain from trade 
D) not trade computers, since they already produce computers more cheaply than other countries

Question 18

Figure 9-11
  
-Refer to Figure 9-11.When the tariff is imposed,how much do consumers gain or lose

Accepted Answer

A) lose $500 
B) lose $900 
C) gain $500 
D) gain $900 
A) lose $500 
B) lose $900 
C) gain $500 
D) gain $900

Question 19

To correctly analyze the welfare effects of free trade on an economy,what must economists assume

Accepted Answer

A) that the country has a comparative advantage in the product 
B) that the country is the only producer of the product 
C) that the country is a price taker 
D) that the country has an absolute advantage in the product 
A) that the country has a comparative advantage in the product 
B) that the country is the only producer of the product 
C) that the country is a price taker 
D) that the country has an absolute advantage in the product

Question 20

When will the domestic price of a product equal the world price

Accepted Answer

A) when the domestic supply of the product increases 
B) when the country allows free trade 
C) when trade restrictions are imposed on the product 
D) when the country has a comparative advantage in producing the product 
A) when the domestic supply of the product increases 
B) when the country allows free trade 
C) when trade restrictions are imposed on the product 
D) when the country has a comparative advantage in producing the product

Exam 9: Application: International Trade

Figure 9-2 -Refer to Figure 9-2.What is China's position regarding pencil sharpeners in the world market

Deadweight loss measures the decrease in total surplus that results from a tariff.

Figure 9-11 -Refer to Figure 9-11.What is the size of the tariff on carnations

Figure 9-12 -Refer to Figure 9-12.As a result of the tariff,what would government revenue be

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

Figure 9-4 -Refer to Figure 9-4.What is the change in total surplus in this market because of trade

Figure 9-6 -Refer to Figure 9-6.With free trade,what would consumer surplus be

Suppose Canada threatens to impose a tariff on German cars if Germany does not remove agricultural subsidies.How will Canada end up

What is a quota

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

Who do countries protect when they impose restrictions on free foreign trade

Figure 9-3 -Figure 9-3 represents the domestic hoverboard market in Canada.What is the quantity of hoverboards exported from Canada

When will the domestic price of a product equal the world price

Figure 9-5 -Figure 9-5 shows the domestic market for calculators in Haiti.What would Haiti do

When does a country have a comparative advantage in a product

For any country,if the world price of computers is higher than the domestic price of computers,should that country export or import computers

Figure 9-11 -Refer to Figure 9-11.When the tariff is imposed,how much do consumers gain or lose

To correctly analyze the welfare effects of free trade on an economy,what must economists assume

When will the domestic price of a product equal the world price

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

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