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

A flawed argument for protection from foreign trade is that i. tariffs save domestic jobs.
Ii. tariffs protect the national culture.
Iii. quotas bring about diversity and stability.

Accepted Answer

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

Question 3

The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?

Accepted Answer

The tariff raises the price of

Question 4

-The above figure shows the U.S. market for replacement cell phone batteries. With free international trade, the United States

Accepted Answer

A) exports 300,000 batteries. 
B) imports 400,000 batteries. 
C) imports 500,000 batteries. 
D) imports 800,000 batteries. 
E) exports 700,000 batteries. 
A) exports 300,000 batteries. 
B) imports 400,000 batteries. 
C) imports 500,000 batteries. 
D) imports 800,000 batteries. 
E) exports 700,000 batteries.

Question 5

8.5 Chapter Figures
   
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, consumer 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.

Question 6

-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 7

-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 8

How do exports affect sellers' producer surplus?

Accepted Answer

Producer surplus increases. It

Question 9

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

Accepted Answer

Governments use tariffs and nontariff ba

Question 10

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, consumer 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 11

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Accepted Answer

A tariff raises the price of the good. A

Question 12

Once international trade occurs, a country with a comparative advantage in the production of a good will ________ production of the good and ________.

Accepted Answer

A) decrease; import the good 
B) increase; export the good 
C) not change; import the good 
D) increase; import the good 
E) decrease; export the good 
A) decrease; import the good 
B) increase; export the good 
C) not change; import the good 
D) increase; import the good 
E) decrease; export the good

Question 13

-The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops.

Accepted Answer

A) 300,000 
B) 500,000 
C) 700,000 
D) 0 because the United States exports flip-flops 
E) 400,000 
A) 300,000 
B) 500,000 
C) 700,000 
D) 0 because the United States exports flip-flops 
E) 400,000

Question 14

-The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds of cherries would U.S. farmers produce?

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

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 16

-The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________.

Accepted Answer

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

Question 17

What is dumping?

Accepted Answer

Dumping is the situation in wh

Question 18

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 19

When a nation exports a good or service, 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 20

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.

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

A flawed argument for protection from foreign trade is that i. tariffs save domestic jobs. Ii. tariffs protect the national culture. Iii. quotas bring about diversity and stability.

The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?

-The above figure shows the U.S. market for replacement cell phone batteries. With free international trade, the United States

-The above figure shows the U.S. market for wheat. Without international trade, producer 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

How do exports affect sellers' producer surplus?

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Once international trade occurs, a country with a comparative advantage in the production of a good will production of the good and .

-The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops.

-The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds of cherries would U.S. farmers produce?

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

-The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________.

What is dumping?

A country will export a good if it

When a nation exports a good or service, employment in that industry

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

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 8: Global Markets in Action

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

A flawed argument for protection from foreign trade is that i. tariffs save domestic jobs. Ii. tariffs protect the national culture. Iii. quotas bring about diversity and stability.

The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?

-The above figure shows the U.S. market for replacement cell phone batteries. With free international trade, the United States

-The above figure shows the U.S. market for wheat. Without international trade, producer 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

How do exports affect sellers' producer surplus?

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Once international trade occurs, a country with a comparative advantage in the production of a good will ________ production of the good and ________.

-The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops.

-The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds of cherries would U.S. farmers produce?

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

-The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________.

What is dumping?

A country will export a good if it

When a nation exports a good or service, employment in that industry

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

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Once international trade occurs, a country with a comparative advantage in the production of a good will production of the good and .