Question 1

Figure 9-10. The figure applies to Mexico and the good is rifles. 2 - Q1 is A) the number of rifles bought and sold in Mexico. B) the number of rifles produced in Mexico. C) the number of rifles exported by Mexico. D) the number of rifles imported by Mexico." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-10. When trade takes place, the quantity Q2 - Q1 is

Accepted Answer

A)  the number of rifles bought and sold in Mexico.
B)  the number of rifles produced in Mexico.
C)  the number of rifles exported by Mexico.
D)  the number of rifles imported by Mexico.E) A) and B)
F) A) and C)

Question 2

Figure 9-5 
-Refer to Figure 9-5. With trade, producer surplus is

Accepted Answer

A)  $80.
B)  $150.
C)  $210.
D)  $245.E) A) and C)
F) C) and D)

Question 3

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. 
-Refer to Figure 9-8. The country for which the figure is drawn

Accepted Answer

A)  has a comparative advantage relative to other countries in the production of cars and it will export cars.
B)  has a comparative advantage relative to other countries in the production of cars and it will import cars.
C)  has a comparative disadvantage relative to other countries in the production of cars and it will export cars.
D)  has a comparative disadvantage relative to other countries in the production of cars and it will import cars.E) A) and B)
F) None of the above

Question 4

The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Accepted Answer

A)  if it works consumer surplus will decline.
B)  if it works producer surplus falls.
C)  if it fails the country faces a choice between two bad options.
D)  if it fails total surplus will increase.E) None of the above
F) All of the above

Question 5

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Accepted Answer

A)  that country becomes an exporter of beans.
B)  that country has a comparative advantage in producing beans.
C)  at the world price, the quantity of beans supplied in that country exceeds the quantity of beans demanded in that country.
D)  All of the above are correct.E) C) and D)
F) B) and D)

Question 6

Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

Figure 9-15 
-Refer to Figure 9-15. Producer surplus with the tariff is

Accepted Answer

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

Question 9

The nation of Falconia forbids international trade. In Falconia, you can obtain a computer by trading 3 bicycles. In other countries, you can obtain a computer by trading 5 bicycles. These facts indicate that

Accepted Answer

A)  if Falconia were to allow trade, it would export computers.
B)  Falconia has an absolute advantage, relative to other countries, in producing computers.
C)  Falconia has a comparative advantage, relative to other countries, in producing bicycles.
D)  All of the above are correct.E) C) and D)
F) A) and B)

Question 10

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. 
-Refer to Figure 9-8. When the country for which the figure is drawn allows international trade in cars,

Accepted Answer

A)  consumer surplus increases by the area B.
B)  producer surplus decreases by the area B + D.
C)  total surplus increases by the area D.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 11

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.E) None of the above
F) B) and D)

Question 12

Suppose Iran imposes a tariff on lumber. For the tariff to have any effect, it must be the case that

Accepted Answer

A)  Iran is an exporter of lumber.
B)  the domestic quantity of lumber supplied exceeds the domestic quantity of lumber demanded at the world price without the tariff.
C)  the world price without the tariff is less than the price of lumber without trade.
D)  the world price without the tariff is greater than the price of lumber without trade.E) B) and C)
F) All of the above

Question 13

Trade among nations is ultimately based on

Accepted Answer

A)  absolute advantage.
B)  strategic advantage.
C)  comparative advantage.
D)  technical advantage.E) C) and D)
F) B) and C)

Question 14

Figure 9-10. The figure applies to Mexico and the good is rifles. 0, P0) , (Q2, P1) , and (Q1, P1)  represents A) Mexico's gains from trade. B) the amount by which Mexico's gain in consumer surplus exceeds its loss in producer surplus due to trade. C) Mexico's gain in total surplus due to trade. D) All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-10. The area bounded by the points (Q0, P0) , (Q2, P1) , and (Q1, P1)  represents

Accepted Answer

A)  Mexico's gains from trade.
B)  the amount by which Mexico's gain in consumer surplus exceeds its loss in producer surplus due to trade.
C)  Mexico's gain in total surplus due to trade.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 15

Figure 9-20
The figure illustrates the market for rice in Vietnam. 
-Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Accepted Answer

A)  9,250.
B)  10,000.
C)  12,000.
D)  13,000.E) A) and D)
F) B) and C)

Question 16

Figure 9-9 
-Refer to Figure 9-9. The change in total surplus in this market because of trade is

Accepted Answer

A)  D, and this area represents a loss of total surplus because of trade.
B)  D, and this area represents a gain in total surplus because of trade.
C)  B + D, and this area represents a loss of total surplus because of trade.
D)  B + D, and this area represents a gain in total surplus because of trade.E) C) and D)
F) A) and C)

Question 17

Using the graph below, answer the following questions about hammers.  
a. What is the equilibrium price of hammers before trade?
b. What is the equilibrium quantity of hammers before trade?
c. What is the price of hammers after trade is allowed?
d. What is the quantity of hammers imported after trade is allowed?
e. What is the amount of consumer surplus before trade?
f. What is the amount of consumer surplus after trade?
g. What is the amount of producer surplus before trade?
h. What is the amount of producer surplus after trade?
i. What is the amount of total surplus before trade?
j. What is the amount of total surplus after trade?
k. What is the change in total surplus because of trade?

Accepted Answer

a.$14
b.90
c.$10
d.8...

Question 18

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Accepted Answer

A) True 
 B)False

Question 19

"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Accepted Answer

A) True 
 B)False

Question 20

Figure 9-5 
-Refer to Figure 9-5. Bearing in mind that this country is "small," which of the following events conceivably could cause the country to switch from being an importer of wagons to an exporter of wagons?

Accepted Answer

A)  Incomes of domestic citizens increase, and wagons are a normal good.
B)  Within this country, the price of a substitute for wagons decreases.
C)  Within this country, the price of a complement to wagons decreases.
D)  Wages increase for domestic workers who produce wagons.E) B) and D)
F) C) and D)

Exam 9: Application: International Trade

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. The area bounded by the points (Q₀, P₀) , (Q₂, P₁) , and (Q₁, P₁) represents

Correct Answer
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Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Correct Answer
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Figure 9-9 -Refer to Figure 9-9. The change in total surplus in this market because of trade is

Correct Answer
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Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. When trade takes place, the quantity Q₂ - Q₁ is

Correct Answer
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Suppose Iran imposes a tariff on lumber. For the tariff to have any effect, it must be the case that

Correct Answer
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Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. The country for which the figure is drawn

Correct Answer
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Correct Answer
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a.$14
b.90
c.$10
d.8...
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Figure 9-5 -Refer to Figure 9-5. With trade, producer surplus is

Correct Answer
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Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Correct Answer
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Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct Answer
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"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Correct Answer
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The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Correct Answer
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The nation of Falconia forbids international trade. In Falconia, you can obtain a computer by trading 3 bicycles. In other countries, you can obtain a computer by trading 5 bicycles. These facts indicate that

Correct Answer
verified

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

Correct Answer
verified

Trade among nations is ultimately based on

Correct Answer
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Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Correct Answer
verified

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. When the country for which the figure is drawn allows international trade in cars,

Correct Answer
verified

Figure 9-5 -Refer to Figure 9-5. Bearing in mind that this country is "small," which of the following events conceivably could cause the country to switch from being an importer of wagons to an exporter of wagons?

Correct Answer
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Figure 9-9 -Refer to Figure 9-9. Producer surplus in this market before trade is

Correct Answer
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Figure 9-15 -Refer to Figure 9-15. Producer surplus with the tariff is

Correct Answer
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Exam 9: Application: International Trade

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. The area bounded by the points (Q0, P0) , (Q2, P1) , and (Q1, P1) represents

Correct AnswerverifiedShow Answer

Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

Correct AnswerverifiedShow Answer

Figure 9-9 -Refer to Figure 9-9. The change in total surplus in this market because of trade is

Correct AnswerverifiedShow Answer

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. When trade takes place, the quantity Q2 - Q1 is

Correct AnswerverifiedShow Answer

Suppose Iran imposes a tariff on lumber. For the tariff to have any effect, it must be the case that

Correct AnswerverifiedShow Answer

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. The country for which the figure is drawn

Correct AnswerverifiedShow Answer

Correct Answerverifieda.$14b.90c.$10d.8...View AnswerShow Answer

Figure 9-5 -Refer to Figure 9-5. With trade, producer surplus is

Correct AnswerverifiedShow Answer

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of beans increases to equal the world price of beans, then

Correct AnswerverifiedShow Answer

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to

Correct AnswerverifiedShow Answer

"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Correct AnswerverifiedShow Answer

The problem with the protection-as-a-bargaining-chip argument for trade restrictions is

Correct AnswerverifiedShow Answer

The nation of Falconia forbids international trade. In Falconia, you can obtain a computer by trading 3 bicycles. In other countries, you can obtain a computer by trading 5 bicycles. These facts indicate that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Trade among nations is ultimately based on

Correct AnswerverifiedShow Answer

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium without trade, thus reducing the gains from trade.

Correct AnswerverifiedShow Answer

Figure 9-8. On the diagram below, Q represents the quantity of cars and P represents the price of cars. -Refer to Figure 9-8. When the country for which the figure is drawn allows international trade in cars,

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5. Bearing in mind that this country is "small," which of the following events conceivably could cause the country to switch from being an importer of wagons to an exporter of wagons?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15. Producer surplus with the tariff is

Correct AnswerverifiedShow Answer

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. The area bounded by the points (Q₀, P₀) , (Q₂, P₁) , and (Q₁, P₁) represents

Correct Answer
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Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. When trade takes place, the quantity Q₂ - Q₁ is

Correct Answer
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a.$14
b.90
c.$10
d.8...
View Answer

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