Question 1

The typical relationship between a worker's productivity and the worker's wage rate is

Accepted Answer

A) high productivity workers receive low wage rates. 
B) low productivity workers receive low wage rates. 
C) no link between productivity and wages earned. 
D) high productivity workers find that their jobs are often outsourced. 
E) that workers with high productivity need to have their high wages protected by tariffs. 
A) high productivity workers receive low wage rates. 
B) low productivity workers receive low wage rates. 
C) no link between productivity and wages earned. 
D) high productivity workers find that their jobs are often outsourced. 
E) that workers with high productivity need to have their high wages protected by tariffs.

Question 2

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 3

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 the U.S.net ________ surplus from the tariff is ________.

Accepted Answer

A) loss of; 30 million per year 
B) gain in; $20 million per year 
C) loss of; $10 million per year 
D) gain in; $55 million per year 
E) gain in; zero 
A) loss of; 30 million per year 
B) gain in; $20 million per year 
C) loss of; $10 million per year 
D) gain in; $55 million per year 
E) gain in; zero

Question 4

-The above figure shows the U.S.market for 1 carat diamonds.The free trade, the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure, the price in the United States is equal to ________.

Accepted Answer

A) $4,000; $2,000 
B) $2,000; $3,000 
C) $4,000; $3,000 
D) $2,000; $2,000 
E) $2,000; $4,000 
A) $4,000; $2,000 
B) $2,000; $3,000 
C) $4,000; $3,000 
D) $2,000; $2,000 
E) $2,000; $4,000

Question 5

Which of the following chain of events occurs when a tariff is imposed on a good?

Accepted Answer

A) Domestic prices rise, shifting the domestic supply curve rightward. 
B) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good. 
C) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded. 
D) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied. 
E) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward. 
A) Domestic prices rise, shifting the domestic supply curve rightward. 
B) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good. 
C) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded. 
D) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied. 
E) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward.

Question 6

A country will export a good if it

Accepted Answer

A) can sell the good to a foreigner at a higher price than the no-trade domestic price. 
B) can sell the good to a foreigner at a lower price than the no-trade domestic price. 
C) can dump the good on the world market. 
D) has a high opportunity cost of production. 
E) is impossible to import the good. 
A) can sell the good to a foreigner at a higher price than the no-trade domestic price. 
B) can sell the good to a foreigner at a lower price than the no-trade domestic price. 
C) can dump the good on the world market. 
D) has a high opportunity cost of production. 
E) is impossible to import the good.

Question 7

What is dumping?

Accepted Answer

Dumping is the situation in wh

Question 8

The infant-industry argument is used by those who assert they want to

Accepted Answer

A) limit imports to protect new industries. 
B) increase exports to encourage growth of new industries. 
C) limit exports. 
D) increase imports to earn money to support new industries. 
E) encourage foreign firms to dump in the United States. 
A) limit imports to protect new industries. 
B) increase exports to encourage growth of new industries. 
C) limit exports. 
D) increase imports to earn money to support new industries. 
E) encourage foreign firms to dump in the United States.

Question 9

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

Accepted Answer

A) $4 
B) $14 
C) $12 
D) $6 
E) $2 
A) $4 
B) $14 
C) $12 
D) $6 
E) $2

Question 10

-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 11

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

Accepted Answer

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

Question 12

If a tariff 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 13

-The above figure shows the U.S.market for chocolate.With no 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 14

-The figure above shows the U.S.demand and U.S.supply curves for cherries.Suppose the world price of cherries is $2 per pound.At this price, U.S.consumption of cherries will equal

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 15

The national security argument is used by those who assert they want to

Accepted Answer

A) increase imports as a way of strengthening their country. 
B) increase exports as a way of earning money to strengthen their country. 
C) limit imports that compete with domestic producers important for national defense. 
D) limit exports to control the flow of technology to third world nations. 
E) limit all imports. 
A) increase imports as a way of strengthening their country. 
B) increase exports as a way of earning money to strengthen their country. 
C) limit imports that compete with domestic producers important for national defense. 
D) limit exports to control the flow of technology to third world nations. 
E) limit all imports.

Question 16

-The above figure shows the U.S.market for wheat.When there no international trade, the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

Accepted Answer

A) $14; 300,000 
B) $14; 500,000 
C) $16; 500,000 
D) $16; 300,000 
E) $16; 700,000 
A) $14; 300,000 
B) $14; 500,000 
C) $16; 500,000 
D) $16; 300,000 
E) $16; 700,000

Question 17

-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 production of cherries in the United States will equal

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 18

-The above figure shows the U.S.market for 1 carat diamonds.Area A is the

Accepted Answer

A) increase in producer surplus due to the import quota. 
B) importers' profit from the import quota. 
C) decrease in consumer surplus due to the import quota. 
D) deadweight loss from the import quota. 
E) gain in total surplus due to the import quota. 
A) increase in producer surplus due to the import quota. 
B) importers' profit from the import quota. 
C) decrease in consumer surplus due to the import quota. 
D) deadweight loss from the import quota. 
E) gain in total surplus due to the import quota.

Question 19

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 20

Looking at the average tariff rate in the United States since 1930, we see that

Accepted Answer

A) at first tariffs declined, but have recently risen. 
B) tariffs have trended downward for most of the period. 
C) tariff levels have remained high, at over 50 percent throughout the period. 
D) while we talk about free trade, tariff levels have risen over the last 30 years. 
E) tariffs were made illegal in the United States in 1955. 
A) at first tariffs declined, but have recently risen. 
B) tariffs have trended downward for most of the period. 
C) tariff levels have remained high, at over 50 percent throughout the period. 
D) while we talk about free trade, tariff levels have risen over the last 30 years. 
E) tariffs were made illegal in the United States in 1955.

The typical relationship between a worker's productivity and the worker's wage rate is

Imports consumer surplus, producer surplus, and total surplus.

-The above figure shows the U.S.market for 1 carat diamonds.The free trade, the price in the United States for diamonds is equal to and with the quota illustrated in the figure, the price in the United States is equal to .

Which of the following chain of events occurs when a tariff is imposed on a good?

A country will export a good if it

What is dumping?

The infant-industry argument is used by those who assert they want to

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

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

When a nation exports a good, its surplus increases, and when it imports a good, its surplus increases.

If a tariff 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 .

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

-The figure above shows the U.S.demand and U.S.supply curves for cherries.Suppose the world price of cherries is $2 per pound.At this price, U.S.consumption of cherries will equal

The national security argument is used by those who assert they want to

-The above figure shows the U.S.market for wheat.When there no international trade, the U.S.price of wheat is per ton and the U.S.equilibrium quantity is tons.

-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 production of cherries in the United States will equal

-The above figure shows the U.S.market for 1 carat diamonds.Area A is the

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.

Looking at the average tariff rate in the United States since 1930, we see that

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

The typical relationship between a worker's productivity and the worker's wage rate is

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

-The above figure shows the U.S.market for 1 carat diamonds.The free trade, the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure, the price in the United States is equal to ________.

Which of the following chain of events occurs when a tariff is imposed on a good?

A country will export a good if it

What is dumping?

The infant-industry argument is used by those who assert they want to

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

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

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

If a tariff 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 ________.

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

-The figure above shows the U.S.demand and U.S.supply curves for cherries.Suppose the world price of cherries is $2 per pound.At this price, U.S.consumption of cherries will equal

The national security argument is used by those who assert they want to

-The above figure shows the U.S.market for wheat.When there no international trade, the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

-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 production of cherries in the United States will equal

-The above figure shows the U.S.market for 1 carat diamonds.Area A is the

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.

Looking at the average tariff rate in the United States since 1930, we see that

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

Imports consumer surplus, producer surplus, and total surplus.

-The above figure shows the U.S.market for 1 carat diamonds.The free trade, the price in the United States for diamonds is equal to and with the quota illustrated in the figure, the price in the United States is equal to .

When a nation exports a good, its surplus increases, and when it imports a good, its surplus increases.

If a tariff 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 .

-The above figure shows the U.S.market for wheat.When there no international trade, the U.S.price of wheat is per ton and the U.S.equilibrium quantity is tons.

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.