Question 1

Figure 9-12  
-Refer to Figure 9-12.Producer surplus after trade is

Accepted Answer

A) $28,000. 
B) $30,000. 
C) $35,200. 
D) $38,400. 
A) $28,000. 
B) $30,000. 
C) $35,200. 
D) $38,400.

Question 2

The world price of a ton of steel is $650.Before Russia allowed trade in steel,the price of a ton of steel there was $1,000.Once Russia allowed trade in steel with other countries,Russia began

Accepted Answer

A) exporting steel and the price per ton in Russia decreased to $650. 
B) exporting steel and the price per ton in Russia remained at $1,000. 
C) importing steel and the price per ton in Russia decreased to $650. 
D) importing steel and the price per ton in Russia remained at $1,000. 
A) exporting steel and the price per ton in Russia decreased to $650. 
B) exporting steel and the price per ton in Russia remained at $1,000. 
C) importing steel and the price per ton in Russia decreased to $650. 
D) importing steel and the price per ton in Russia remained at $1,000.

Question 3

Figure 9-15  
-Refer to Figure 9-15.For the saddle market,area E represents

Accepted Answer

A) government's revenue from the tariff. 
B) producer surplus after the tariff becomes effective. 
C) the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff. 
D) the decrease in total surplus,relative to the free-trade situation,as a result of the tariff. 
A) government's revenue from the tariff. 
B) producer surplus after the tariff becomes effective. 
C) the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff. 
D) the decrease in total surplus,relative to the free-trade situation,as a result of the tariff.

Question 4

Figure 9-15  
-Refer to Figure 9-15.Producer surplus with the tariff is

Accepted Answer

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

Question 5

Scenario 9-2
• For a small country called Boxland,the equation of the domestic demand curve for
cardboard is   ,
where   represents the domestic quantity of cardboard demanded,in tons,and   represents the price of a ton of cardboard.
• For Boxland,the equation of the domestic supply curve for cardboard is   ,
where   represents the domestic quantity of cardboard supplied,in tons,and   again
represents the price of a ton of cardboard.
-Refer to Scenario 9-2.If Boxland prohibits international trade in cardboard,then the equilibrium price of a ton of cardboard is

Accepted Answer

A) $36 and the equilibrium quantity of cardboard is 74 tons. 
B) $44 and the equilibrium quantity of cardboard is 88 tons. 
C) $52 and the equilibrium quantity of cardboard is 96 tons. 
D) $60 and the equilibrium quantity of cardboard is 100 tons. 
A) $36 and the equilibrium quantity of cardboard is 74 tons. 
B) $44 and the equilibrium quantity of cardboard is 88 tons. 
C) $52 and the equilibrium quantity of cardboard is 96 tons. 
D) $60 and the equilibrium quantity of cardboard is 100 tons.

Question 6

Figure 9-5
The figure illustrates the market for tricycles in a country.  
-Refer to Figure 9-5.With trade,the price of tricycles in this country is

Accepted Answer

A) $11,with 200 tricycles produced in this country and another 320 tricycles imported. 
B) $11,with 360 tricycles produced in this country and another 160 tricycles imported. 
C) $19,with 200 tricycles produced in this country and another 160 tricycles imported. 
D) $19,with 360 tricycles produced in this country and another 320 tricycles imported. 
A) $11,with 200 tricycles produced in this country and another 320 tricycles imported. 
B) $11,with 360 tricycles produced in this country and another 160 tricycles imported. 
C) $19,with 200 tricycles produced in this country and another 160 tricycles imported. 
D) $19,with 360 tricycles produced in this country and another 320 tricycles imported.

Question 7

Figure 9-5
The figure illustrates the market for tricycles in a country.  
-Refer to Figure 9-5.With trade,this country

Accepted Answer

A) exports 160 tricycles. 
B) exports 320 tricycles. 
C) imports 160 tricycles. 
D) imports 320 tricycles. 
A) exports 160 tricycles. 
B) exports 320 tricycles. 
C) imports 160 tricycles. 
D) imports 320 tricycles.

Question 8

Figure 9-4.The domestic country is Nicaragua.  
-Refer to Figure 9-4.Consumer surplus in Nicaragua without trade is

Accepted Answer

A) $375. 
B) $2,000. 
C) $2,250. 
D) $8,700. 
A) $375. 
B) $2,000. 
C) $2,250. 
D) $8,700.

Question 9

Figure 9-6
The figure illustrates the market for roses in a country.  
-The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become

Accepted Answer

A) better off,its producers of fish will become better off,and on balance the citizens of Denmark will become better off. 
B) worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off 
C) worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off. 
D) better off,its producers of fish will become worse off,and on balance the citizens of Denmark will become better off 
A) better off,its producers of fish will become better off,and on balance the citizens of Denmark will become better off. 
B) worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off 
C) worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off. 
D) better off,its producers of fish will become worse off,and on balance the citizens of Denmark will become better off

Question 10

Figure 9-15  
-Refer to Figure 9-15.For the saddle market,area B represents

Accepted Answer

A) government's revenue from the tariff. 
B) the deadweight loss of the tariff. 
C) the increase in producer surplus,relative to the free-trade situation,as a result of the tariff. 
D) None of the above is correct. 
A) government's revenue from the tariff. 
B) the deadweight loss of the tariff. 
C) the increase in producer surplus,relative to the free-trade situation,as a result of the tariff. 
D) None of the above is correct.

Question 11

When a nation first begins to trade with other countries and the nation becomes an importer of corn,

Accepted Answer

A) this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade. 
B) this is an indication that the nation has a comparative advantage in producing corn. 
C) the nation's consumers of corn become better off and the nation's producers of corn become worse off. 
D) All of the above are correct. 
A) this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade. 
B) this is an indication that the nation has a comparative advantage in producing corn. 
C) the nation's consumers of corn become better off and the nation's producers of corn become worse off. 
D) All of the above are correct.

Question 12

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of pistachios decreases to equal the world price of pistachios,then

Accepted Answer

A) that country becomes an exporter of pistachios. 
B) that country has a comparative advantage in producing pistachios. 
C) at the world price,the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country. 
D) All of the above are correct. 
A) that country becomes an exporter of pistachios. 
B) that country has a comparative advantage in producing pistachios. 
C) at the world price,the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country. 
D) All of the above are correct.

Question 13

Figure 9-22
The following diagram shows the domestic demand and domestic supply in a market.In addition,assume that the world price in this market is $40 per unit.  
-Refer to Figure 9-22.Suppose the government imposes a tariff of $20 per unit.Relative to the free-trade outcome,the imposition of the tariff

Accepted Answer

A) decreases imports of the good by 300 units and increases domestic production of the good by 300 units. 
B) decreases imports of the good by 300 units and increases domestic production of the good by 600 units. 
C) decreases imports of the good by 600 units and increases domestic production of the good by 300 units. 
D) decreases imports of the good by 600 units and increases domestic production of the good by 600 units. 
A) decreases imports of the good by 300 units and increases domestic production of the good by 300 units. 
B) decreases imports of the good by 300 units and increases domestic production of the good by 600 units. 
C) decreases imports of the good by 600 units and increases domestic production of the good by 300 units. 
D) decreases imports of the good by 600 units and increases domestic production of the good by 600 units.

Question 14

For any country that allows free trade,

Accepted Answer

A) domestic quantity demanded is equal to domestic quantity supplied at the world price. 
B) domestic quantity demanded is greater than domestic quantity supplied at the world price. 
C) both producers and consumers in that country gain when domestic products are exported,but both groups lose when foreign products are imported. 
D) the domestic price is equal to the world price. 
A) domestic quantity demanded is equal to domestic quantity supplied at the world price. 
B) domestic quantity demanded is greater than domestic quantity supplied at the world price. 
C) both producers and consumers in that country gain when domestic products are exported,but both groups lose when foreign products are imported. 
D) the domestic price is equal to the world price.

Question 15

Figure 9-20
The figure illustrates the market for rice in Vietnam.  
-Refer to Figure 9-20.Given that Vietnam is a small country,it is apparent from the figure that

Accepted Answer

A) Vietnam will export rice if trade is allowed. 
B) Vietnam will import rice if trade is allowed. 
C) Vietnam has nothing to gain either by importing or exporting rice. 
D) the world price will fall if Vietnam begins to allow its citizens to trade with other countries. 
A) Vietnam will export rice if trade is allowed. 
B) Vietnam will import rice if trade is allowed. 
C) Vietnam has nothing to gain either by importing or exporting rice. 
D) the world price will fall if Vietnam begins to allow its citizens to trade with other countries.

Question 16

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S.  
-Refer to Figure 9-26.As a result of opening up the baseball market to international trade,the U.S.will​

Accepted Answer

A) ​import 600 baseballs. 
B) ​export 300 baseballs. 
C) ​import 400 baseballs. 
D) ​export 600 baseballs. 
A) ​import 600 baseballs. 
B) ​export 300 baseballs. 
C) ​import 400 baseballs. 
D) ​export 600 baseballs.

Question 17

Scenario 9-2
• For a small country called Boxland,the equation of the domestic demand curve for
cardboard is   ,
where   represents the domestic quantity of cardboard demanded,in tons,and   represents the price of a ton of cardboard.
• For Boxland,the equation of the domestic supply curve for cardboard is   ,
where   represents the domestic quantity of cardboard supplied,in tons,and   again
represents the price of a ton of cardboard.
-Refer to Scenario 9-2.Suppose the world price of cardboard is $45.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland?

Accepted Answer

A) It increases consumer surplus,decreases producer surplus,and increases total surplus. 
B) It increases consumer surplus,increases producer surplus,and increases total surplus. 
C) It increases consumer surplus,decreases producer surplus,and decreases total surplus. 
D) It decreases consumer surplus,increases producer surplus,and increases total surplus. 
A) It increases consumer surplus,decreases producer surplus,and increases total surplus. 
B) It increases consumer surplus,increases producer surplus,and increases total surplus. 
C) It increases consumer surplus,decreases producer surplus,and decreases total surplus. 
D) It decreases consumer surplus,increases producer surplus,and increases total surplus.

Question 18

Figure 9-13  
-Refer to Figure 9-13.Producer surplus before trade is

Accepted Answer

A) $3,600. 
B) $4,400. 
C) $5,200. 
D) $6,600. 
A) $3,600. 
B) $4,400. 
C) $5,200. 
D) $6,600.

Question 19

Figure 9-7.The figure applies to the nation of Wales and the good is cheese.  
-Refer to Figure 9-7.The equilibrium price and the equilibrium quantity of cheese in Wales before trade are

Accepted Answer

A) P1 and Q2. 
B) P1 and Q1. 
C) P0 and Q0. 
D) P0 and Q1. 
A) P1 and Q2. 
B) P1 and Q1. 
C) P0 and Q0. 
D) P0 and Q1.

Question 20

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

Accepted Answer

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

Exam 9: Application International Trade: The Winners and Losers From Trade

Figure 9-12 -Refer to Figure 9-12.Producer surplus after trade is

The world price of a ton of steel is $650.Before Russia allowed trade in steel,the price of a ton of steel there was $1,000.Once Russia allowed trade in steel with other countries,Russia began

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents

Figure 9-15 -Refer to Figure 9-15.Producer surplus with the tariff is

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5.With trade,the price of tricycles in this country is

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5.With trade,this country

Figure 9-4.The domestic country is Nicaragua. -Refer to Figure 9-4.Consumer surplus in Nicaragua without trade is

Figure 9-6 The figure illustrates the market for roses in a country. -The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area B represents

When a nation first begins to trade with other countries and the nation becomes an importer of corn,

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of pistachios decreases to equal the world price of pistachios,then

For any country that allows free trade,

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20.Given that Vietnam is a small country,it is apparent from the figure that

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to Figure 9-26.As a result of opening up the baseball market to international trade,the U.S.will​

Figure 9-13 -Refer to Figure 9-13.Producer surplus before trade is

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.The equilibrium price and the equilibrium quantity of cheese in Wales before trade are

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

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to Figure 9-26.As a result of opening up the baseball market to international trade,the U.S.will

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