Question 1

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit. 
-Refer to Figure 9-29. Suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, what will be the domestic price in this market?

Accepted Answer

With trade and a tar...

Question 2

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market. Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-27. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Accepted Answer

With trade, consumer...

Question 3

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.E) A) and B)
F) C) and D)

Question 4

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.E) A) and C)
F) All of the above

Question 5

Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany

Accepted Answer

A)  may prompt German farmers to invoke the unfair-competition argument.
B)  increase the consumer surplus of German buyers of wheat.
C)  increase the total surplus of the German people.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 6

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Accepted Answer

A) True 
 B)False

Question 7

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

Accepted Answer

A) True 
 B)False

Question 8

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.E) A) and B)
F) B) and D)

Question 9

Figure 9-12 
-Refer to Figure 9-12. Consumer surplus before trade is

Accepted Answer

A)  $14,400.
B)  $16,800.
C)  $21,600.
D)  $24,800.E) B) and C)
F) A) and B)

Question 10

A tariff

Accepted Answer

A)  lowers the domestic price of the exported good below the world price.
B)  keeps the domestic price of the exported good the same as the world price.
C)  raises the domestic price of the imported good above the world price.
D)  lowers the domestic price of the imported good below the world price.E) B) and C)
F) A) and D)

Question 11

When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,

Accepted Answer

A)  consumer surplus increases and total surplus increases in the market for that good.
B)  consumer surplus increases and total surplus decreases in the market for that good.
C)  consumer surplus decreases and total surplus increases in the market for that good.
D)  consumer surplus decreases and total surplus decreases in the market for that good.E) None of the above
F) A) and B)

Question 12

If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus.

Accepted Answer

A) True 
 B)False

Question 13

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Accepted Answer

A) True 
 B)False

Question 14

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations: 
-Refer to Scenario 9-3. With no trade allowed, what are the equilibrium price and quantity in this market?

Accepted Answer

The equilibrium pric...

Question 15

Figure 9-11 
-Refer to Figure 9-11. Consumer surplus in this market before trade is

Accepted Answer

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

Question 16

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. The deadweight loss caused by the tariff is

Accepted Answer

A)  $6,000.
B)  $9,000.
C)  $12,000.
D)  $15,000.E) A) and C)
F) C) and D)

Question 17

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-28. Suppose the world price in this market is $6. If the country allows free trade, how much is consumer surplus?

Accepted Answer

With trade...

Question 18

A tax on an imported good is called a

Accepted Answer

A)  quota.
B)  tariff.
C)  supply tax.
D)  trade tax.E) A) and B)
F) A) and C)

Question 19

Using the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questions given this information.  
a.What is the domestic price and quantity demanded of hammers after the tariff is imposed?
b.What is the quantity of hammers imported before the tariff?
c.What is the quantity of hammers imported after the tariff?
d.What would be the amount of consumer surplus before the tariff?
e.What would be the amount of consumer surplus after the tariff?
f. What would be the amount of producer surplus before the tariff?
g. What would be the amount of producer surplus after the tariff?
h. What would be the amount of government revenue because of the tariff?
i. What would be the total amount of deadweight loss due to the tariff?

Accepted Answer

a.$6, 84
b.66
c.44
d...

Question 20

When a country allows trade and becomes an importer of a good,

Accepted Answer

A)  both domestic producers and domestic consumers become better off.
B)  domestic producers become better off, and domestic consumers become worse off.
C)  domestic producers become worse off, and domestic consumers become better off.
D)  both domestic producers and domestic consumers become worse off.E) B) and C)
F) A) and D)

Exam 9: Application: International Trade

Correct Answer
verified
a.$6, 84
b.66
c.44
d...
View Answer

Correct Answer
verified
With trade and a tar...
View Answer

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

Correct Answer
verified

Figure 9-12 -Refer to Figure 9-12. Consumer surplus before trade is

Correct Answer
verified

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Correct Answer
verified

When a country allows trade and becomes an importer of a good,

Correct Answer
verified

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Correct Answer
verified

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

Correct Answer
verified

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. The deadweight loss caused by the tariff is

Correct Answer
verified

If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus.

Correct Answer
verified

Scenario 9-3 Suppose domestic demand and domestic supply in a market are given by the following equations: -Refer to Scenario 9-3. With no trade allowed, what are the equilibrium price and quantity in this market?

Correct Answer
verified
The equilibrium pric...
View Answer

A tax on an imported good is called a

Correct Answer
verified

Figure 9-11 -Refer to Figure 9-11. Consumer surplus in this market before trade is

Correct Answer
verified

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

Correct Answer
verified

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

Correct Answer
verified

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market. Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer
verified
With trade, consumer...
View Answer

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. Suppose the world price in this market is $6. If the country allows free trade, how much is consumer surplus?

Correct Answer
verified
With trade...
View Answer

A tariff

Correct Answer
verified

Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany

Correct Answer
verified

When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,

Correct Answer
verified

Exam 9: Application: International Trade

Correct Answerverifieda.$6, 84b.66c.44d...View AnswerShow Answer

Correct AnswerverifiedWith trade and a tar...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12. Consumer surplus before trade is

Correct AnswerverifiedShow Answer

According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Correct AnswerverifiedShow Answer

When a country allows trade and becomes an importer of a good,

Correct AnswerverifiedShow Answer

The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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. The deadweight loss caused by the tariff is

Correct AnswerverifiedShow Answer

If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus.

Correct AnswerverifiedShow Answer

Scenario 9-3 Suppose domestic demand and domestic supply in a market are given by the following equations: -Refer to Scenario 9-3. With no trade allowed, what are the equilibrium price and quantity in this market?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

A tax on an imported good is called a

Correct AnswerverifiedShow Answer

Figure 9-11 -Refer to Figure 9-11. Consumer surplus in this market before trade is

Correct AnswerverifiedShow Answer

If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-27 The following diagram shows the domestic demand and supply curves in a market. Assume that the world price in this market is $20 per unit. -Refer to Figure 9-27. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct AnswerverifiedWith trade, consumer...View AnswerShow Answer

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. Suppose the world price in this market is $6. If the country allows free trade, how much is consumer surplus?

Correct AnswerverifiedWith trade...View AnswerShow Answer

A tariff

Correct AnswerverifiedShow Answer

Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany

Correct AnswerverifiedShow Answer

When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,

Correct AnswerverifiedShow Answer

Correct Answer
verified
a.$6, 84
b.66
c.44
d...
View Answer

Correct Answer
verified
With trade and a tar...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The equilibrium pric...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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With trade, consumer...
View Answer

Correct Answer
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With trade...
View Answer

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Correct Answer
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Correct Answer
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