Question 1

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 2

Which of the following is correct?
I.U.S.total surplus decreases when the United States exports a good.
Ii.U.S.total surplus decreases when the United States imports a good.
Iii.U.S.total surplus increases when the United States imports a good and when it exports a good.

Accepted Answer

A) i only 
B) iii only 
C) i and ii 
D) ii only 
E) None of the above because the U.S.total surplus does not change as a result of trade 
A) i only 
B) iii only 
C) i and ii 
D) ii only 
E) None of the above because the U.S.total surplus does not change as a result of trade

Question 3

How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?

Accepted Answer

A) It cannot. 
B) by comparing the price it receives to the prices of other domestic producers 
C) by comparing the price it receives to the world price 
D) by comparing the quantity it produces to the quantity produced in the world 
E) by comparing the total domestic quantity to the total world quantity 
A) It cannot. 
B) by comparing the price it receives to the prices of other domestic producers 
C) by comparing the price it receives to the world price 
D) by comparing the quantity it produces to the quantity produced in the world 
E) by comparing the total domestic quantity to the total world quantity

Question 4

If a nation imports a good that can be domestically produced,what happens to the quantity consumed of the good and why?

Accepted Answer

A) The quantity consumed increases because the market price decreases. 
B) The quantity consumed decreases because the market price increases. 
C) The quantity consumed remains constant because the price is unchanged. 
D) The quantity consumed increases because the nation produces more of the good. 
E) The quantity consumed decreases because the market price decreases. 
A) The quantity consumed increases because the market price decreases. 
B) The quantity consumed decreases because the market price increases. 
C) The quantity consumed remains constant because the price is unchanged. 
D) The quantity consumed increases because the nation produces more of the good. 
E) The quantity consumed decreases because the market price decreases.

Question 5

As a result of U.S.tariffs imposed on wool from New Zealand,the quantity of this wool that is imported has

Accepted Answer

A) decreased. 
B) increased a little. 
C) not changed. 
D) increased a lot. 
E) changed but whether it has increased or decreased is ambiguous. 
A) decreased. 
B) increased a little. 
C) not changed. 
D) increased a lot. 
E) changed but whether it has increased or decreased is ambiguous.

Question 6

-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 7

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,U.S.domestic production ________ airplanes per year.

Accepted Answer

A) decreases by 200 
B) increases by 300 
C) decreases by 100 
D) increases by 500 
E) increases by 200 
A) decreases by 200 
B) increases by 300 
C) decreases by 100 
D) increases by 500 
E) increases by 200

Question 8

Which of the following is true?
I.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good.
Ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger.
Iii.Quotas raise the domestic price of imported goods.

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

What is dumping?

Accepted Answer

Dumping is the situation in wh

Question 11

-The above figure shows the U.S.market for flip-flops.With no international trade,the price in the United States for flip-flops is ________.With international trade,the price in the United States for flip-flops is ________.

Accepted Answer

A) $12;$14 
B) $500;$300 
C) $14;$12 
D) $700;$300 
E) $500;$700 
A) $12;$14 
B) $500;$300 
C) $14;$12 
D) $700;$300 
E) $500;$700

Question 12

Imports ________ society's total surplus because of the ________ in price and ________ in consumption.

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 13

A country exports the goods

Accepted Answer

A) for which its domestic prices are very high compared to the world prices. 
B) that the economy can produce the most of. 
C) that the economy can produce at relatively lowest opportunity cost. 
D) that it cannot sell domestically. 
E) in which it has a comparative disadvantage. 
A) for which its domestic prices are very high compared to the world prices. 
B) that the economy can produce the most of. 
C) that the economy can produce at relatively lowest opportunity cost. 
D) that it cannot sell domestically. 
E) in which it has a comparative disadvantage.

Question 14

-The above figure shows the U.S.market for chocolate.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 D;area E 
B) area B + area C + area D;area A + area E 
C) area A;area E 
D) area C + area D;area B + area E 
E) area E;area A + area B + area C + area D 
A) area A + area B + area C + area D;area E 
B) area B + area C + area D;area A + area E 
C) area A;area E 
D) area C + area D;area B + area E 
E) area E;area A + area B + area C + area D

Question 15

Most t-shirts bought by Americans are made in Asia.As a result of free trade,the production of t-shirts in America

Accepted Answer

A) has increased. 
B) has stayed the same. 
C) has decreased. 
D) has been taken over by the government. 
E) might change,but more information about what else the United States imports is needed to determine if U.S.production increased,decreased,or did not change. 
A) has increased. 
B) has stayed the same. 
C) has decreased. 
D) has been taken over by the government. 
E) might change,but more information about what else the United States imports is needed to determine if U.S.production increased,decreased,or did not change.

Question 16

Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?

Accepted Answer

Consumers of the good being imported gai

Question 17

In the 1950s,crude oil and natural gas imports were restricted to keep the domestic industries viable in case of a war.The rationale for this protection is the ________ argument for protection.

Accepted Answer

A) save domestic jobs 
B) national security 
C) anti-dumping 
D) infant-industry 
E) penalizing lax environmental standards 
A) save domestic jobs 
B) national security 
C) anti-dumping 
D) infant-industry 
E) penalizing lax environmental standards

Question 18

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.

Question 19

If a quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.producer surplus from shrimp will ________.

Accepted Answer

A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) increase;not change 
A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) increase;not change

Question 20

-The above figure shows the U.S.market for wheat.When there no international trade,the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

Accepted Answer

A) $14;300,000 
B) $14;500,000 
C) $16;500,000 
D) $16;300,000 
E) $16;700,000 
A) $14;300,000 
B) $14;500,000 
C) $16;500,000 
D) $16;300,000 
E) $16;700,000

A country will export a good if it

Which of the following is correct? I.U.S.total surplus decreases when the United States exports a good. Ii.U.S.total surplus decreases when the United States imports a good. Iii.U.S.total surplus increases when the United States imports a good and when it exports a good.

How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?

If a nation imports a good that can be domestically produced,what happens to the quantity consumed of the good and why?

As a result of U.S.tariffs imposed on wool from New Zealand,the quantity of this wool that is imported has

-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

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

What is dumping?

-The above figure shows the U.S.market for flip-flops.With no international trade,the price in the United States for flip-flops is .With international trade,the price in the United States for flip-flops is .

Imports society's total surplus because of the in price and in consumption.

A country exports the goods

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

Most t-shirts bought by Americans are made in Asia.As a result of free trade,the production of t-shirts in America

Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?

In the 1950s,crude oil and natural gas imports were restricted to keep the domestic industries viable in case of a war.The rationale for this protection is the ________ argument for protection.

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

If a quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will and U.S.producer surplus from shrimp will .

-The above figure shows the U.S.market for wheat.When there no international trade,the U.S.price of wheat is per ton and the U.S.equilibrium quantity is tons.

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

A country will export a good if it

Which of the following is correct? I.U.S.total surplus decreases when the United States exports a good. Ii.U.S.total surplus decreases when the United States imports a good. Iii.U.S.total surplus increases when the United States imports a good and when it exports a good.

How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?

If a nation imports a good that can be domestically produced,what happens to the quantity consumed of the good and why?

As a result of U.S.tariffs imposed on wool from New Zealand,the quantity of this wool that is imported has

-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

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

What is dumping?

-The above figure shows the U.S.market for flip-flops.With no international trade,the price in the United States for flip-flops is ________.With international trade,the price in the United States for flip-flops is ________.

Imports ________ society's total surplus because of the ________ in price and ________ in consumption.

A country exports the goods

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

Most t-shirts bought by Americans are made in Asia.As a result of free trade,the production of t-shirts in America

Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?

In the 1950s,crude oil and natural gas imports were restricted to keep the domestic industries viable in case of a war.The rationale for this protection is the ________ argument for protection.

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

If a quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.producer surplus from shrimp will ________.

-The above figure shows the U.S.market for wheat.When there no international trade,the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

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

-The above figure shows the U.S.market for flip-flops.With no international trade,the price in the United States for flip-flops is .With international trade,the price in the United States for flip-flops is .

Imports society's total surplus because of the in price and in consumption.

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

If a quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will and U.S.producer surplus from shrimp will .

-The above figure shows the U.S.market for wheat.When there no international trade,the U.S.price of wheat is per ton and the U.S.equilibrium quantity is tons.