Question 1

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

Accepted Answer

The U.S.government attempts to compensat

Question 2

A tax on a good that is imposed when it is imported is called

Accepted Answer

A) an import quota. 
B) a VER. 
C) a tariff. 
D) a sanction. 
E) a border tax. 
A) an import quota. 
B) a VER. 
C) a tariff. 
D) a sanction. 
E) a border tax.

Question 3

When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.

Accepted Answer

A) consumer;producer 
B) consumer;consumer 
C) producer;producer 
D) producer;consumer 
E) total;consumer 
A) consumer;producer 
B) consumer;consumer 
C) producer;producer 
D) producer;consumer 
E) total;consumer

Question 4

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the production of cherries in the United States 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 5

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is ________ per ton.With international trade,the price of wheat in the United States is ________ per ton.

Accepted Answer

A) $16;$14 
B) $500;$300 
C) $14;$16 
D) $700;$300 
E) $500;$700 
A) $16;$14 
B) $500;$300 
C) $14;$16 
D) $700;$300 
E) $500;$700

Question 6

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs,Suevania's consumers will buy ________ machinery and pay ________ before.

Accepted Answer

A) more;a higher price than 
B) more;a lower price than 
C) less;a higher price than 
D) less;a lower price than 
E) the same amount of;the same price as 
A) more;a higher price than 
B) more;a lower price than 
C) less;a higher price than 
D) less;a lower price than 
E) the same amount of;the same price as

Question 7

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to

Accepted Answer

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

Question 8

The national security argument is used by those who assert they want to

Accepted Answer

A) increase imports as a way of strengthening their country. 
B) increase exports as a way of earning money to strengthen their country. 
C) limit imports that compete with domestic producers important for national defense. 
D) limit exports to control the flow of technology to third world nations. 
E) limit all imports. 
A) increase imports as a way of strengthening their country. 
B) increase exports as a way of earning money to strengthen their country. 
C) limit imports that compete with domestic producers important for national defense. 
D) limit exports to control the flow of technology to third world nations. 
E) limit all imports.

Question 9

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

Accepted Answer

A) producer surplus when there is free trade. 
B) deadweight loss from tariff. 
C) tariff revenue. 
D) increase in producer surplus due to the tariff. 
E) gain in total surplus due to the tariff. 
A) producer surplus when there is free trade. 
B) deadweight loss from tariff. 
C) tariff revenue. 
D) increase in producer surplus due to the tariff. 
E) gain in total surplus due to the tariff.

Question 10

When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.

Accepted Answer

A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) increases;does not change 
A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) increases;does not change

Question 11

-The table above has the domestic demand and domestic supply schedules for a good.If the world price of the good is $10 and international trade occurs,then according to the table

Accepted Answer

A) domestic production is higher before trade than after trade. 
B) the country imports 16 units a day. 
C) the country imports 6 units a day. 
D) the country exports 6 units a day. 
E) the country exports 22 units a day. 
A) domestic production is higher before trade than after trade. 
B) the country imports 16 units a day. 
C) the country imports 6 units a day. 
D) the country exports 6 units a day. 
E) the country exports 22 units a day.

Question 12

A quota is a

Accepted Answer

A) quantitative restriction on an import imposed by the importing country. 
B) quantitative restriction on an import imposed by the exporting country. 
C) restriction on how much a customer can buy of a scarce good imposed by the seller. 
D) tax that is imposed on a good when it crosses an international boundary. 
E) trade barrier that does not harm domestic consumers of the good or service. 
A) quantitative restriction on an import imposed by the importing country. 
B) quantitative restriction on an import imposed by the exporting country. 
C) restriction on how much a customer can buy of a scarce good imposed by the seller. 
D) tax that is imposed on a good when it crosses an international boundary. 
E) trade barrier that does not harm domestic consumers of the good or service.

Question 13

When a country imports a good,the ________ in consumer surplus is ________ the ________ in producer surplus.

Accepted Answer

A) decrease;larger than;increase 
B) decrease;smaller than;increase 
C) increase;smaller than;decrease 
D) increase;equal to;decrease 
E) increase;larger than;decrease 
A) decrease;larger than;increase 
B) decrease;smaller than;increase 
C) increase;smaller than;decrease 
D) increase;equal to;decrease 
E) increase;larger than;decrease

Question 14

-The above figure shows the U.S.market for chocolate.With international trade,________ is the transfer of surplus from producers to consumers.

Accepted Answer

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

Question 15

All of the following statements about the United States are true EXCEPT:

Accepted Answer

A) The largest imports are services like royalties,license fees,and financial services,and the largest exports are goods like crude oil,automobiles,and clothing. 
B) The United States is the world's largest international trader. 
C) The United States imports more than it exports. 
D) Services account for a larger portion of U.S.exports than U.S.imports. 
E) Imports are a larger percentage of total expenditure than exports are a percentage of total production. 
A) The largest imports are services like royalties,license fees,and financial services,and the largest exports are goods like crude oil,automobiles,and clothing. 
B) The United States is the world's largest international trader. 
C) The United States imports more than it exports. 
D) Services account for a larger portion of U.S.exports than U.S.imports. 
E) Imports are a larger percentage of total expenditure than exports are a percentage of total production.

Question 16

Currently,the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

Accepted Answer

If the quota is removed,the pr

Question 17

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

Accepted Answer

A) consumer surplus when there is a tariff. 
B) producer surplus when there is a tariff. 
C) tariff revenue. 
D) increase in producer surplus due to the tariff. 
E) gain in total surplus due to the tariff. 
A) consumer surplus when there is a tariff. 
B) producer surplus when there is a tariff. 
C) tariff revenue. 
D) increase in producer surplus due to the tariff. 
E) gain in total surplus due to the tariff.

Question 18

When a nation exports 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;increases;increases 
A) increases;decreases;increases 
B) increases;decreases;decreases 
C) increases;increases;increases 
D) decreases;decreases;decreases 
E) decreases;increases;increases

Question 19

Exports ________ society's total surplus because of the ________ in price and ________ in production.

Accepted Answer

A) increase;rise;increase 
B) increase;rise;decrease 
C) decrease;fall;increase 
D) decrease;fall;decrease 
E) increase;fall;increase 
A) increase;rise;increase 
B) increase;rise;decrease 
C) decrease;fall;increase 
D) decrease;fall;decrease 
E) increase;fall;increase

Question 20

-The above figure shows the U.S.market for wheat.With no international trade,consumer surplus is equal to ________ and producer surplus is equal to ________.

Accepted Answer

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

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

A tax on a good that is imposed when it is imported is called

When a nation exports a good,its surplus increases,and when it imports a good,its surplus increases.

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the production of cherries in the United States will equal

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is per ton.With international trade,the price of wheat in the United States is per ton.

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs,Suevania's consumers will buy machinery and pay before.

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to

The national security argument is used by those who assert they want to

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

When a good is imported,the domestic production of it and the domestic consumption of it .

-The table above has the domestic demand and domestic supply schedules for a good.If the world price of the good is $10 and international trade occurs,then according to the table

A quota is a

When a country imports a good,the in consumer surplus is the in producer surplus.

-The above figure shows the U.S.market for chocolate.With international trade,________ is the transfer of surplus from producers to consumers.

All of the following statements about the United States are true EXCEPT:

Currently,the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

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

Exports society's total surplus because of the in price and in production.

-The above figure shows the U.S.market for wheat.With no international trade,consumer surplus is equal to and producer surplus is equal to .

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

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

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

A tax on a good that is imposed when it is imported is called

When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the production of cherries in the United States will equal

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is ________ per ton.With international trade,the price of wheat in the United States is ________ per ton.

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs,Suevania's consumers will buy ________ machinery and pay ________ before.

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to

The national security argument is used by those who assert they want to

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.

-The table above has the domestic demand and domestic supply schedules for a good.If the world price of the good is $10 and international trade occurs,then according to the table

A quota is a

When a country imports a good,the ________ in consumer surplus is ________ the ________ in producer surplus.

-The above figure shows the U.S.market for chocolate.With international trade,________ is the transfer of surplus from producers to consumers.

All of the following statements about the United States are true EXCEPT:

Currently,the United States has a quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

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

Exports ________ society's total surplus because of the ________ in price and ________ in production.

-The above figure shows the U.S.market for wheat.With no international trade,consumer surplus is equal to ________ and producer surplus is equal to ________.

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

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

When a nation exports a good,its surplus increases,and when it imports a good,its surplus increases.

-The above figure shows the U.S.market for wheat.With no international trade,the price of wheat in the United States is per ton.With international trade,the price of wheat in the United States is per ton.

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs,Suevania's consumers will buy machinery and pay before.

When a good is imported,the domestic production of it and the domestic consumption of it .

When a country imports a good,the in consumer surplus is the in producer surplus.

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

Exports society's total surplus because of the in price and in production.

-The above figure shows the U.S.market for wheat.With no international trade,consumer surplus is equal to and producer surplus is equal to .