Question 1

How do exports affect buyers' consumer surplus?

Accepted Answer

Consumer surplus decreases.It

Question 2

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

Accepted Answer

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

Question 3

When a nation exports a good or service in which it has a comparative advantage, 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 4

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 5

Goods and services that the United States buys from other nations are called

Accepted Answer

A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods. 
A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods.

Question 6

After a tariff is imposed, consumers must pay a price equal to the

Accepted Answer

A) world market price. 
B) domestic equilibrium price when there is no trade. 
C) world market price plus the tariff. 
D) world market price less the tariff. 
E) domestic equilibrium price when there is no trade plus the tariff. 
A) world market price. 
B) domestic equilibrium price when there is no trade. 
C) world market price plus the tariff. 
D) world market price less the tariff. 
E) domestic equilibrium price when there is no trade plus the tariff.

Question 7

-The above figure shows the U.S.market for chocolate.With international trade, consumer surplus is equal to

Accepted Answer

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

Question 8

When a nation imports a good, its ________ surplus increases and its ________ surplus increases.

Accepted Answer

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

Question 9

When a nation imports 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 10

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

Accepted Answer

If the quota is removed, the p

Question 11

Suppose the world price of a shirt is $10.If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the

Accepted Answer

A) United States falls to $5. 
B) United States rises to $15. 
C) world falls to $5. 
D) world rises to $5. 
E) world rises to $15 
A) United States falls to $5. 
B) United States rises to $15. 
C) world falls to $5. 
D) world rises to $5. 
E) world rises to $15

Question 12

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 13

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

Accepted Answer

A) domestic steel consumers. 
B) domestic steel producers. 
C) foreign steel consumers. 
D) foreign steel producers. 
E) foreign politicians. 
A) domestic steel consumers. 
B) domestic steel producers. 
C) foreign steel consumers. 
D) foreign steel producers. 
E) foreign politicians.

Question 14

Of the following, who gains because of tariffs and why?

Accepted Answer

A) domestic producers of protected goods because they can sell at a higher price 
B) domestic buyers because they can be sure of buying high-quality products 
C) foreign producers because they earn more total revenue 
D) foreign government because they gain more revenue 
E) domestic buyers because they pay a lower price 
A) domestic producers of protected goods because they can sell at a higher price 
B) domestic buyers because they can be sure of buying high-quality products 
C) foreign producers because they earn more total revenue 
D) foreign government because they gain more revenue 
E) domestic buyers because they pay a lower price

Question 15

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 16

What is the infant-industry argument for protection from international trade?

Accepted Answer

A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability. 
A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability.

Question 17

Goods and services that the United States sells to other nations are called

Accepted Answer

A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods. 
A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods.

Question 18

-If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

Accepted Answer

A) U.S. steel consumers 
B) the U.S. government 
C) U.S. importers of steel 
D) foreign exporters of steel 
E) the foreign government 
A) U.S. steel consumers 
B) the U.S. government 
C) U.S. importers of steel 
D) foreign exporters of steel 
E) the foreign government

Question 19

If an import quota is imposed on imports of shrimp into the United States, U.S.producer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

Accepted Answer

A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
E) increase; not change 
A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
E) increase; not change

Question 20

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, as a result of international trade, producer surplus

Accepted Answer

A) increases by $150 million. 
B) decreases by $150 million. 
C) increases by $90 million. 
D) decreases by $90 million. 
E) remains unchanged. 
A) increases by $150 million. 
B) decreases by $150 million. 
C) increases by $90 million. 
D) decreases by $90 million. 
E) remains unchanged.

How do exports affect buyers' consumer surplus?

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

When a nation exports a good or service in which it has a comparative advantage, employment in that industry

A country exports the goods

Goods and services that the United States buys from other nations are called

After a tariff is imposed, consumers must pay a price equal to the

-The above figure shows the U.S.market for chocolate.With international trade, consumer surplus is equal to

When a nation imports a good, its surplus increases and its surplus increases.

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

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

Suppose the world price of a shirt is $10.If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the

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

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

Of the following, who gains because of tariffs and why?

What is the infant-industry argument for protection from international trade?

Goods and services that the United States sells to other nations are called

-If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

If an import quota is imposed on imports of shrimp into the United States, U.S.producer surplus from shrimp will and U.S.total surplus from shrimp will .

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

How do exports affect buyers' consumer surplus?

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

When a nation exports a good or service in which it has a comparative advantage, employment in that industry

A country exports the goods

Goods and services that the United States buys from other nations are called

After a tariff is imposed, consumers must pay a price equal to the

-The above figure shows the U.S.market for chocolate.With international trade, consumer surplus is equal to

When a nation imports a good, its ________ surplus increases and its ________ surplus increases.

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

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

Suppose the world price of a shirt is $10.If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the

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

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

Of the following, who gains because of tariffs and why?

What is the infant-industry argument for protection from international trade?

Goods and services that the United States sells to other nations are called

-If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

If an import quota is imposed on imports of shrimp into the United States, U.S.producer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

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

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

When a nation imports a good, its surplus increases and its surplus increases.

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

If an import quota is imposed on imports of shrimp into the United States, U.S.producer surplus from shrimp will and U.S.total surplus from shrimp will .