Question 1

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 2

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

Accepted Answer

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

Question 3

After a tariff is imposed on a good,the price of the good

Accepted Answer

A)  does not change. 
B)  falls. 
C)  rises. 
D)  rises only if the domestic demand for the good does not change. 
E)  might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota. 
A)  does not change. 
B)  falls. 
C)  rises. 
D)  rises only if the domestic demand for the good does not change. 
E)  might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota.

Question 4

-The table above has the domestic supply and domestic demand schedules for a product.What is the equilibrium price with no trade? Over what range of prices will the country export the good? Over what range will it import the good? Suppose the world price is $20.What is the quantity demanded,the quantity supplied,and the amount of the good exported or imported?

Accepted Answer

The price with no trade is $12.The count

Question 5

The figure above shows the U.S. market for T-shirts, 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 a T-shirt is $5.
-Based on the figure above,as a result of international trade,consumer surplus

Accepted Answer

A)  increases by $150 million. 
B)  decreases by $150 million. 
C)  increases by $90 million. 
D)  decreases by $90 million. 
E)  remains unchanged. 
A)  increases by $150 million. 
B)  decreases by $150 million. 
C)  increases by $90 million. 
D)  decreases by $90 million. 
E)  remains unchanged.

Question 6

When a nation exports a good,its ________ surplus decreases and 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 7

Which type of policy raises the most revenue for the government?

Accepted Answer

A)  tariff 
B)  quota 
C)  voluntary export restraints 
D)  If they are set at the same level, all of the above raise the same amount of revenue. 
E)  None of the above answers is correct because none of the policies raises revenue for the government. 
A)  tariff 
B)  quota 
C)  voluntary export restraints 
D)  If they are set at the same level, all of the above raise the same amount of revenue. 
E)  None of the above answers is correct because none of the policies raises revenue for the government.

Question 8

-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 9

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 10

A specified maximum amount of the good that may be imported in a given period of time is a

Accepted Answer

A)  forcible limit. 
B)  quota. 
C)  tariff. 
D)  sanction. 
E)  dumping limit. 
A)  forcible limit. 
B)  quota. 
C)  tariff. 
D)  sanction. 
E)  dumping limit.

Question 11

-The above figure shows the U.S.market for wheat.Without international trade,producer surplus is equal to ________.

Accepted Answer

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

Question 12

-The above figure shows the U.S.market for 1 carat diamonds.Area C is the

Accepted Answer

A)  decrease in consumer surplus due to the import quota. 
B)  importers' profit from the quota. 
C)  deadweight loss from the import quota. 
D)  increase in producer surplus due to the import quota. 
E)  gain in total surplus due to the import quota. 
A)  decrease in consumer surplus due to the import quota. 
B)  importers' profit from the quota. 
C)  deadweight loss from the import quota. 
D)  increase in producer surplus due to the import quota. 
E)  gain in total surplus due to the import quota.

Question 13

If the United States imposes a tariff on a good,then

Accepted Answer

A)  domestic consumption of the good decreases. 
B)  foreign consumption of the good decreases. 
C)  foreign production of the good increases. 
D)  domestic production of the good decreases. 
E)  the government makes less revenue than it would have gained if it imposed a quota. 
A)  domestic consumption of the good decreases. 
B)  foreign consumption of the good decreases. 
C)  foreign production of the good increases. 
D)  domestic production of the good decreases. 
E)  the government makes less revenue than it would have gained if it imposed a quota.

Question 14

Three arguments used to promote trade barriers are the national security argument,the infant-industry argument,and the dumping argument.Explain each of these arguments and evaluate whether each one has any flaws.

Accepted Answer

The national security argument is that c

Question 15

Relative to free trade,when a tariff is imposed in a market for an imported good,

Accepted Answer

A)  the consumer surplus in that market increases. 
B)  the producer surplus in that market decreases. 
C)  the total surplus in that market decreases. 
D)  tariff revenue decreases. 
E)  deadweight loss decreases. 
A)  the consumer surplus in that market increases. 
B)  the producer surplus in that market decreases. 
C)  the total surplus in that market decreases. 
D)  tariff revenue decreases. 
E)  deadweight loss decreases.

Question 16

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

Accepted Answer

A)  500,000 
B)  700,000 
C)  400,000 
D)  900,000 
E)  300,000 
A)  500,000 
B)  700,000 
C)  400,000 
D)  900,000 
E)  300,000

Question 17

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 18

The United States imports t-shirts from Asia.As a result,U.S.consumers pay ________ otherwise and Asian producers receive ________ otherwise.

Accepted Answer

A)  a higher price than; a higher price than 
B)  a higher price than; a lower price than 
C)  a lower price than; a higher price than 
D)  a lower price than; a lower price than 
E)  the same price as; the same price as 
A)  a higher price than; a higher price than 
B)  a higher price than; a lower price than 
C)  a lower price than; a higher price than 
D)  a lower price than; a lower price than 
E)  the same price as; the same price as

Question 19

A tariff is

Accepted Answer

A)  a tax imposed on imports. 
B)  any non-tax action used to restrict trade. 
C)  a tax imposed on exports. 
D)  any non-subsidy used to increase trade. 
E)  a subsidy granted to imports. 
A)  a tax imposed on imports. 
B)  any non-tax action used to restrict trade. 
C)  a tax imposed on exports. 
D)  any non-subsidy used to increase trade. 
E)  a subsidy granted to imports.

Question 20

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

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

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

After a tariff is imposed on a good,the price of the good

When a nation exports a good,its surplus decreases and its surplus increases.

Which type of policy raises the most revenue for the government?

-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

A specified maximum amount of the good that may be imported in a given period of time is a

-The above figure shows the U.S.market for wheat.Without international trade,producer surplus is equal to ________.

-The above figure shows the U.S.market for 1 carat diamonds.Area C is the

If the United States imposes a tariff on a good,then

Three arguments used to promote trade barriers are the national security argument,the infant-industry argument,and the dumping argument.Explain each of these arguments and evaluate whether each one has any flaws.

Relative to free trade,when a tariff is imposed in a market for an imported good,

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

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

The United States imports t-shirts from Asia.As a result,U.S.consumers pay otherwise and Asian producers receive otherwise.

A tariff is

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

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 9: Global Markets in Action

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

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

After a tariff is imposed on a good,the price of the good

When a nation exports a good,its ________ surplus decreases and its ________ surplus increases.

Which type of policy raises the most revenue for the government?

-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

A specified maximum amount of the good that may be imported in a given period of time is a

-The above figure shows the U.S.market for wheat.Without international trade,producer surplus is equal to ________.

-The above figure shows the U.S.market for 1 carat diamonds.Area C is the

If the United States imposes a tariff on a good,then

Three arguments used to promote trade barriers are the national security argument,the infant-industry argument,and the dumping argument.Explain each of these arguments and evaluate whether each one has any flaws.

Relative to free trade,when a tariff is imposed in a market for an imported good,

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

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

The United States imports t-shirts from Asia.As a result,U.S.consumers pay ________ otherwise and Asian producers receive ________ otherwise.

A tariff is

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

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

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

When a nation exports a good,its surplus decreases and its surplus increases.

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

The United States imports t-shirts from Asia.As a result,U.S.consumers pay otherwise and Asian producers receive otherwise.

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