Question 1

When,in our analysis of the gains and losses from international trade,we assume that a particular country is small,we are

Accepted Answer

A) assuming the domestic price before trade will continue to prevail once that country is opened up to trade with other countries. 
B) assuming there is no demand for that country's domestically-produced goods by other countries. 
C) assuming international trade can benefit producers,but not consumers,in that country. 
D) making an assumption that is not necessary to analyze the gains and losses from international trade. 
A) assuming the domestic price before trade will continue to prevail once that country is opened up to trade with other countries. 
B) assuming there is no demand for that country's domestically-produced goods by other countries. 
C) assuming international trade can benefit producers,but not consumers,in that country. 
D) making an assumption that is not necessary to analyze the gains and losses from international trade.

Question 2

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

Accepted Answer

A) $1,600. 
B) $2,400. 
C) $3,200. 
D) $3,600. 
A) $1,600. 
B) $2,400. 
C) $3,200. 
D) $3,600.

Question 3

Figure 9-15  
-Refer to Figure 9-15.Consumer surplus with trade and without a tariff is

Accepted Answer

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

Question 4

Figure 9-6
The figure illustrates the market for roses in a country.  
-The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an

Accepted Answer

A) importer of fish and the price of fish in Germany will be $6.00. 
B) importer of fish and the price of fish in Germany will be $8.00. 
C) exporter of fish and the price of fish in Germany will be $6.00. 
D) exporter of fish and the price of fish in Germany will be $8.00. 
A) importer of fish and the price of fish in Germany will be $6.00. 
B) importer of fish and the price of fish in Germany will be $8.00. 
C) exporter of fish and the price of fish in Germany will be $6.00. 
D) exporter of fish and the price of fish in Germany will be $8.00.

Question 5

Figure 9-19.On the diagram below,Q represents the quantity of textiles and P represents the price of textiles.  
-Refer to Figure 9-19.With free trade,the country for which the figure is drawn will

Accepted Answer

A) export 30 units of textiles. 
B) export 50 units of textiles. 
C) import 30 units of textiles. 
D) import 50 units of textiles. 
A) export 30 units of textiles. 
B) export 50 units of textiles. 
C) import 30 units of textiles. 
D) import 50 units of textiles.

Question 6

Figure 9-1
The figure illustrates the market for coffee in Guatemala.  
-Refer to Figure 9-1.With trade,total surplus in the Guatemalan coffee market amounts to

Accepted Answer

A) 1,250. 
B) 1,468. 
C) 1,870. 
D) 1,980. 
A) 1,250. 
B) 1,468. 
C) 1,870. 
D) 1,980.

Question 7

Figure 9-1
The figure illustrates the market for coffee in Guatemala.  
-Refer to Figure 9-1.In the absence of trade,total surplus in the Guatemalan coffee market amounts to

Accepted Answer

A) 750. 
B) 1,100. 
C) 1,514. 
D) 1,650. 
A) 750. 
B) 1,100. 
C) 1,514. 
D) 1,650.

Question 8

When the nation of Mooseland first permitted trade with other nations,domestic producers of sugar experienced a decrease in producer surplus of $5 million and total surplus in Mooseland's sugar market increased by $2 million.We can conclude that

Accepted Answer

A) Mooseland became an exporter of sugar. 
B) the overall economic well-being of participants in the sugar market in Mooseland fell because of trade. 
C) consumer surplus in Mooseland increased by $7 million. 
D) the opening of trade caused the domestic demand curve for sugar in Mooseland to shift to the right. 
A) Mooseland became an exporter of sugar. 
B) the overall economic well-being of participants in the sugar market in Mooseland fell because of trade. 
C) consumer surplus in Mooseland increased by $7 million. 
D) the opening of trade caused the domestic demand curve for sugar in Mooseland to shift to the right.

Question 9

Figure 9-6
The figure illustrates the market for roses in a country.  
-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 10

Trade enhances the economic well-being of a nation in the sense that

Accepted Answer

A) both domestic producers and domestic consumers of a good become better off with trade,regardless of whether the nation imports or exports the good in question. 
B) the gains of domestic producers of a good exceed the losses of domestic consumers of a good,regardless of whether the nation imports or exports the good in question. 
C) trade results in an increase in total surplus. 
D) trade puts downward pressure on the prices of all goods. 
A) both domestic producers and domestic consumers of a good become better off with trade,regardless of whether the nation imports or exports the good in question. 
B) the gains of domestic producers of a good exceed the losses of domestic consumers of a good,regardless of whether the nation imports or exports the good in question. 
C) trade results in an increase in total surplus. 
D) trade puts downward pressure on the prices of all goods.

Question 11

Figure 9-5
The figure illustrates the market for tricycles in a country.  
-Refer to Figure 9-5.Total surplus with trade exceeds total surplus without trade by

Accepted Answer

A) $640. 
B) $1,280. 
C) $2,560. 
D) $3,840. 
A) $640. 
B) $1,280. 
C) $2,560. 
D) $3,840.

Question 12

Scenario 9-1
The before-trade domestic price of peaches in the United States is $40 per bushel.The world price of peaches is $52 per bushel.The U.S.is a price-taker in the market for peaches.
-Refer to Scenario 9-1.If trade in peaches is allowed,the price of peaches in the United States

Accepted Answer

A) will increase,and this will cause consumer surplus to decrease. 
B) will decrease,and this will cause consumer surplus to increase. 
C) will be unaffected,and consumer surplus will be unaffected as well. 
D) could increase or decrease or be unaffected;this cannot be determined. 
A) will increase,and this will cause consumer surplus to decrease. 
B) will decrease,and this will cause consumer surplus to increase. 
C) will be unaffected,and consumer surplus will be unaffected as well. 
D) could increase or decrease or be unaffected;this cannot be determined.

Question 13

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

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 14

Figure 9-1
The figure illustrates the market for coffee in Guatemala.  
-Refer to Figure 9-1.In the absence of trade,the equilibrium price of coffee in Guatemala is

Accepted Answer

A) $30. 
B) $90. 
C) $110. 
D) $140. 
A) $30. 
B) $90. 
C) $110. 
D) $140.

Question 15

Figure 9-9  
-Refer to Figure 9-9.Consumer surplus in this market after trade is

Accepted Answer

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

Question 16

Figure 9-2
The figure illustrates the market for calculators in a country.  
-Refer to Figure 9-2.This country

Accepted Answer

A) has a comparative advantage in calculators. 
B) should export calculators. 
C) is a price taker in the world economy. 
D) All of the above are correct. 
A) has a comparative advantage in calculators. 
B) should export calculators. 
C) is a price taker in the world economy. 
D) All of the above are correct.

Question 17

Figure 9-25
The following diagram shows the domestic demand and supply in a market.Assume that the world price in this market is $10 per unit.  
-Refer to Figure 9-25.Suppose the government imposes a tariff of $5 per unit.With trade and a tariff,total surplus is

Accepted Answer

A) $1,700. 
B) $1,800. 
C) $1,900. 
D) $2,000. 
A) $1,700. 
B) $1,800. 
C) $1,900. 
D) $2,000.

Question 18

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

Accepted Answer

A) $600. 
B) $1,200. 
C) $1,800. 
D) $2,400. 
A) $600. 
B) $1,200. 
C) $1,800. 
D) $2,400.

Question 19

A quota is

Accepted Answer

A) a tax placed on imports. 
B) a limit on the quantity of imports. 
C) a tax on exports to other countries. 
D) an excess of exports over imports. 
A) a tax placed on imports. 
B) a limit on the quantity of imports. 
C) a tax on exports to other countries. 
D) an excess of exports over imports.

Question 20

Zelzar has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.Which groups in Zelzar are better off as a result of the new free-trade policy?

Accepted Answer

A) producers of incense and consumers of steel 
B) consumers of all three goods 
C) consumers of incense and producers of rugs 
D) producers of steel and consumers of incense 
A) producers of incense and consumers of steel 
B) consumers of all three goods 
C) consumers of incense and producers of rugs 
D) producers of steel and consumers of incense

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

When,in our analysis of the gains and losses from international trade,we assume that a particular country is small,we are

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

Figure 9-15 -Refer to Figure 9-15.Consumer surplus with trade and without a tariff is

Figure 9-6 The figure illustrates the market for roses in a country. -The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an

Figure 9-19.On the diagram below,Q represents the quantity of textiles and P represents the price of textiles. -Refer to Figure 9-19.With free trade,the country for which the figure is drawn will

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.With trade,total surplus in the Guatemalan coffee market amounts to

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.In the absence of trade,total surplus in the Guatemalan coffee market amounts to

When the nation of Mooseland first permitted trade with other nations,domestic producers of sugar experienced a decrease in producer surplus of $5 million and total surplus in Mooseland's sugar market increased by $2 million.We can conclude that

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6.The amount of revenue collected by the government from the tariff is

Trade enhances the economic well-being of a nation in the sense that

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5.Total surplus with trade exceeds total surplus without trade by

Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel.The world price of peaches is $52 per bushel.The U.S.is a price-taker in the market for peaches. -Refer to Scenario 9-1.If trade in peaches is allowed,the price of peaches in the United States

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

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1.In the absence of trade,the equilibrium price of coffee in Guatemala is

Figure 9-9 -Refer to Figure 9-9.Consumer surplus in this market after trade is

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2.This country

Figure 9-25 The following diagram shows the domestic demand and supply in a market.Assume that the world price in this market is $10 per unit. -Refer to Figure 9-25.Suppose the government imposes a tariff of $5 per unit.With trade and a tariff,total surplus is

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

A quota is

Zelzar has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.Which groups in Zelzar are better off as a result of the new free-trade policy?

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