Question 1

Figure 9-12  
-Refer to Figure 9-12.With trade allowed,this country

Accepted Answer

A)  exports 200 units of the good. 
B)  exports 400 units of the good. 
C)  imports 200 units of the good. 
D)  exports 800 units of the good. 
A)  exports 200 units of the good. 
B)  exports 400 units of the good. 
C)  imports 200 units of the good. 
D)  exports 800 units of the good.

Question 2

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.  
-Refer to Figure 9-18.If Isoland allows international trade,then it will be an exporter of peaches if and only if the world price of peaches is

Accepted Answer

A)  above $2. 
B)  below $4. 
C)  above $4. 
D)  below $7. 
A)  above $2. 
B)  below $4. 
C)  above $4. 
D)  below $7.

Question 3

Patterns of trade among nations are primarily determined by

Accepted Answer

A)  cultural considerations. 
B)  political considerations. 
C)  comparative advantage. 
D)  differences in the income elasticity of demand among nations. 
A)  cultural considerations. 
B)  political considerations. 
C)  comparative advantage. 
D)  differences in the income elasticity of demand among nations.

Question 4

If a country's domestic price of a good is lower than the world price,then that country has a comparative advantage in producing that good.

Accepted Answer

A) True 
 B)False

Question 5

Figure 9-5  
-Refer to Figure 9-5.With trade,this country

Accepted Answer

A)  exports 20 wagons. 
B)  exports 50 wagons. 
C)  imports 30 wagons. 
D)  imports 50 wagons. 
A)  exports 20 wagons. 
B)  exports 50 wagons. 
C)  imports 30 wagons. 
D)  imports 50 wagons.

Question 6

Figure 9-6  
-Refer to Figure 9-6.The amount of revenue collected by the government from the tariff is

Accepted Answer

A)  $200. 
B)  $400. 
C)  $500. 
D)  $600. 
A)  $200. 
B)  $400. 
C)  $500. 
D)  $600.

Question 7

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Accepted Answer

A) True 
 B)False

Question 8

Figure 9-17  
-Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is

Accepted Answer

A)  $8. 
B)  $72. 
C)  $180. 
D)  $252. 
A)  $8. 
B)  $72. 
C)  $180. 
D)  $252.

Question 9

Figure 9-11  
-Refer to Figure 9-11.Producer surplus plus consumer surplus in this market after trade is

Accepted Answer

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

Question 10

Figure 9-10.The figure applies to the nation of Australia and the good is cameras.  
-Refer to Figure 9-10.The area bounded by the points (Q0,P0),(Q2,P1),and (Q1,P1)represents

Accepted Answer

A)  Australia's gains from trade. 
B)  the amount by which Australia's gain in consumer surplus exceeds its loss in producer surplus due to trade. 
C)  Australia's gain in total surplus due to trade. 
D)  All of the above are correct. 
A)  Australia's gains from trade. 
B)  the amount by which Australia's gain in consumer surplus exceeds its loss in producer surplus due to trade. 
C)  Australia's gain in total surplus due to trade. 
D)  All of the above are correct.

Question 11

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Accepted Answer

A)  national-security argument. 
B)  infant-industry argument. 
C)  unfair-competition argument. 
D)  jobs argument. 
A)  national-security argument. 
B)  infant-industry argument. 
C)  unfair-competition argument. 
D)  jobs argument.

Question 12

Figure 9-17  
-Refer to Figure 9-17.With free trade,total surplus is

Accepted Answer

A)  $150. 
B)  $300. 
C)  $450. 
D)  $600. 
A)  $150. 
B)  $300. 
C)  $450. 
D)  $600.

Question 13

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 14

In analyzing international trade,we often focus on a country whose economy is small relative to the rest of the world.We do so

Accepted Answer

A)  because it is impossible to analyze the gains and losses from international trade without making this assumption. 
B)  because then we can assume that world prices of goods are unaffected by that country's participation in international trade. 
C)  in order to rule out the possibility of tariffs or quotas. 
D)  All of the above are correct. 
A)  because it is impossible to analyze the gains and losses from international trade without making this assumption. 
B)  because then we can assume that world prices of goods are unaffected by that country's participation in international trade. 
C)  in order to rule out the possibility of tariffs or quotas. 
D)  All of the above are correct.

Question 15

Figure 9-2  
-Refer to Figure 9-2.With free trade,this country will

Accepted Answer

A)  import 40 baskets. 
B)  import 70 baskets. 
C)  export 35 baskets. 
D)  export 65 baskets. 
A)  import 40 baskets. 
B)  import 70 baskets. 
C)  export 35 baskets. 
D)  export 65 baskets.

Question 16

Figure 9-3.The domestic country is China.  
-Refer to Figure 9-3.The increase in total surplus in China when trade is allowed is

Accepted Answer

A)  $400. 
B)  $500. 
C)  $600. 
D)  $750. 
A)  $400. 
B)  $500. 
C)  $600. 
D)  $750.

Question 17

A country has a comparative advantage in a product if the world price is

Accepted Answer

A)  lower than that country's domestic price without trade. 
B)  higher than that country's domestic price without trade. 
C)  equal to that country's domestic price without trade. 
D)  not subject to manipulation by organizations that govern international trade. 
A)  lower than that country's domestic price without trade. 
B)  higher than that country's domestic price without trade. 
C)  equal to that country's domestic price without trade. 
D)  not subject to manipulation by organizations that govern international trade.

Question 18

Figure 9-4.The domestic country is Jamaica.  
-Refer to Figure 9-4.With trade,Jamaica

Accepted Answer

A)  imports 150 calculators. 
B)  imports 250 calculators. 
C)  exports 100 calculators. 
D)  exports 250 calculators. 
A)  imports 150 calculators. 
B)  imports 250 calculators. 
C)  exports 100 calculators. 
D)  exports 250 calculators.

Question 19

For any country,if the world price of zinc is higher than the domestic price of zinc without trade,that country should

Accepted Answer

A)  export zinc,since that country has a comparative advantage in zinc. 
B)  import zinc,since that country has a comparative advantage in zinc. 
C)  neither export nor import zinc,since that country cannot gain from trade. 
D)  neither export nor import zinc,since that country already produces zinc at a low cost compared to other countries. 
A)  export zinc,since that country has a comparative advantage in zinc. 
B)  import zinc,since that country has a comparative advantage in zinc. 
C)  neither export nor import zinc,since that country cannot gain from trade. 
D)  neither export nor import zinc,since that country already produces zinc at a low cost compared to other countries.

Question 20

Figure 9-12  
-Refer to Figure 9-12.Equilibrium price and equilibrium quantity without trade are

Accepted Answer

A)  $18 and 400. 
B)  $18 and 800. 
C)  $14 and 400. 
D)  $14 and 600. 
A)  $18 and 400. 
B)  $18 and 800. 
C)  $14 and 400. 
D)  $14 and 600.

Exam 9: Application: International Trade

Figure 9-12 -Refer to Figure 9-12.With trade allowed,this country

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. -Refer to Figure 9-18.If Isoland allows international trade,then it will be an exporter of peaches if and only if the world price of peaches is

Patterns of trade among nations are primarily determined by

If a country's domestic price of a good is lower than the world price,then that country has a comparative advantage in producing that good.

Figure 9-5 -Refer to Figure 9-5.With trade,this country

Figure 9-6 -Refer to Figure 9-6.The amount of revenue collected by the government from the tariff is

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Figure 9-17 -Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is

Figure 9-11 -Refer to Figure 9-11.Producer surplus plus consumer surplus in this market after trade is

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.The area bounded by the points (Q0,P0),(Q2,P1),and (Q1,P1)represents

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Figure 9-17 -Refer to Figure 9-17.With free trade,total surplus is

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

In analyzing international trade,we often focus on a country whose economy is small relative to the rest of the world.We do so

Figure 9-2 -Refer to Figure 9-2.With free trade,this country will

Figure 9-3.The domestic country is China. -Refer to Figure 9-3.The increase in total surplus in China when trade is allowed is

A country has a comparative advantage in a product if the world price is

Figure 9-4.The domestic country is Jamaica. -Refer to Figure 9-4.With trade,Jamaica

For any country,if the world price of zinc is higher than the domestic price of zinc without trade,that country should

Figure 9-12 -Refer to Figure 9-12.Equilibrium price and equilibrium quantity without trade are

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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.The area bounded by the points (Q₀,P₀),(Q₂,P₁),and (Q₁,P₁)represents