Question 1

As a result of importing a good, domestic producers ________ the quantity produced and the price of the good ________.

Accepted Answer

A) increase; rises 
B) increase; falls 
C) decrease; rises 
D) decrease; falls 
E) decrease; does not change 
A) increase; rises 
B) increase; falls 
C) decrease; rises 
D) decrease; falls 
E) decrease; does not change

Question 2

-The above figure shows the U.S.market for flip-flops.When there is no international trade, the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

Accepted Answer

A) $12; 300,000 
B) $14; 500,000 
C) $12; 700,000 
D) $14; 300,000 
E) $14; 700,000 
A) $12; 300,000 
B) $14; 500,000 
C) $12; 700,000 
D) $14; 300,000 
E) $14; 700,000

Question 3

A nation will export a good if its

Accepted Answer

A) no-trade, domestic price is equal to the world price. 
B) no-trade, domestic price is less than the world price 
C) no-trade, domestic price is greater than the world price. 
D) no-trade, domestic quantity is less than the world quantity. 
E) no-trade, domestic quantity is greater than the world quantity. 
A) no-trade, domestic price is equal to the world price. 
B) no-trade, domestic price is less than the world price 
C) no-trade, domestic price is greater than the world price. 
D) no-trade, domestic quantity is less than the world quantity. 
E) no-trade, domestic quantity is greater than the world quantity.

Question 4

How does the United States attempt to compensate losers from lower trade restrictions?

Accepted Answer

The U.S.government attempts to compensat

Question 5

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, international trade leads to

Accepted Answer

A) a net gain in surplus of $12.5 billion. 
B) a net loss of surplus of $12.5 billion. 
C) a net gain in surplus of $27.5 billion. 
D) a net loss of surplus of $15 billion. 
E) no net gain or loss of surplus. 
A) a net gain in surplus of $12.5 billion. 
B) a net loss of surplus of $12.5 billion. 
C) a net gain in surplus of $27.5 billion. 
D) a net loss of surplus of $15 billion. 
E) no net gain or loss of surplus.

Question 6

Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?

Accepted Answer

Producers of the good being exported gai

Question 7

What is a major reason international trade is restricted?

Accepted Answer

A) rent seeking 
B) to allow competition with cheap foreign labor 
C) to save jobs 
D) to prevent dumping 
E) to eliminate monopolies 
A) rent seeking 
B) to allow competition with cheap foreign labor 
C) to save jobs 
D) to prevent dumping 
E) to eliminate monopolies

Question 8

A tariff is a tax

Accepted Answer

A) on an exported good. 
B) on an imported good. 
C) imposed on all traded goods. 
D) imposed on people's income. 
E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports. 
A) on an exported good. 
B) on an imported good. 
C) imposed on all traded goods. 
D) imposed on people's income. 
E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.

Question 9

Which of the following is an argument that is used for protection from free trade?
I∙the national security argument
Ii∙the infant-industry argument
Iii∙the dumping argument

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i, ii, and iii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i, ii, and iii

Question 10

Why do governments in less-developed nations impose tariffs?

Accepted Answer

A) The government gains revenue from the tariff. 
B) The government's low-paid workers are protected from high-paid foreign workers. 
C) The nation's total income will be increased. 
D) The national security of the country definitely is improved. 
E) The government diversify its economy. 
A) The government gains revenue from the tariff. 
B) The government's low-paid workers are protected from high-paid foreign workers. 
C) The nation's total income will be increased. 
D) The national security of the country definitely is improved. 
E) The government diversify its economy.

Question 11

What is "rent seeking"? How does it apply to restricting imports?

Accepted Answer

Rent seeking is lobbying and other polit

Question 12

-Which type of policy raises the most revenue for the government?

Accepted Answer

A) tariff 
B) quota 
C) voluntary export restraints 
D) If they are set at the same level, all of the above raise the same amount of revenue. 
E) None of the above answers is correct because none of the policies raise revenue for the government. 
A) tariff 
B) quota 
C) voluntary export restraints 
D) If they are set at the same level, all of the above raise the same amount of revenue. 
E) None of the above answers is correct because none of the policies raise revenue for the government.

Question 13

When a nation imports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________.

Accepted Answer

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

Question 14

-The above figure shows the U.S.market for wheat.Without international trade, producer surplus is equal to ________.

Accepted Answer

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

Question 15

-The above figure shows the U.S.market for flip-flops.With international trade, U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

Accepted Answer

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

Question 16

-The figure above shows the U.S.demand and the U.S.supply curves of canned peaches.
a∙In the absence of trade, what is price of canned peaches in the United States?
b∙In the absence of trade, what is the level of production in the United States?
c∙If the world price of canned peaches is $1 a can and the United States engages in trade, does the United States import or export canned peaches?
d∙If the world price of canned peaches is $1 a can and the United States engages in trade, what is the quantity produced in the United States and what is the quantity consumed? What is the quantity imported or exported?
e∙If the world price of canned peaches is $2 a can and the United States engages in trade, does the United States import or export canned peaches?
f∙If the world price of canned peaches is $2 a can and the United States engages in trade, what is the quantity produced in the United States and what is the quantity consumed? What is the quantity imported or exported?

Accepted Answer

a∙In the absence of trade, the price is

As a result of importing a good, domestic producers the quantity produced and the price of the good .

-The above figure shows the U.S.market for flip-flops.When there is no international trade, the U.S.price is per flip-flop and the U.S.quantity is flip-flops.

A nation will export a good if its

How does the United States attempt to compensate losers from lower trade restrictions?

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, international trade leads to

Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?

What is a major reason international trade is restricted?

A tariff is a tax

Which of the following is an argument that is used for protection from free trade? I∙the national security argument Ii∙the infant-industry argument Iii∙the dumping argument

Why do governments in less-developed nations impose tariffs?

What is "rent seeking"? How does it apply to restricting imports?

-Which type of policy raises the most revenue for the government?

When a nation imports a good or service, the nation's consumer surplus , its producer surplus , and its total surplus .

-The above figure shows the U.S.market for wheat.Without international trade, producer surplus is equal to ________.

-The above figure shows the U.S.market for flip-flops.With international trade, U.S.consumers buy flip-flops and U.S.producers produce flip-flops.

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

As a result of importing a good, domestic producers ________ the quantity produced and the price of the good ________.

-The above figure shows the U.S.market for flip-flops.When there is no international trade, the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

A nation will export a good if its

How does the United States attempt to compensate losers from lower trade restrictions?

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, international trade leads to

Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?

What is a major reason international trade is restricted?

A tariff is a tax

Which of the following is an argument that is used for protection from free trade? I∙the national security argument Ii∙the infant-industry argument Iii∙the dumping argument

Why do governments in less-developed nations impose tariffs?

What is "rent seeking"? How does it apply to restricting imports?

-Which type of policy raises the most revenue for the government?

When a nation imports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________.

-The above figure shows the U.S.market for wheat.Without international trade, producer surplus is equal to ________.

-The above figure shows the U.S.market for flip-flops.With international trade, U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

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

As a result of importing a good, domestic producers the quantity produced and the price of the good .

-The above figure shows the U.S.market for flip-flops.When there is no international trade, the U.S.price is per flip-flop and the U.S.quantity is flip-flops.

When a nation imports a good or service, the nation's consumer surplus , its producer surplus , and its total surplus .

-The above figure shows the U.S.market for flip-flops.With international trade, U.S.consumers buy flip-flops and U.S.producers produce flip-flops.