Question 1

Figure 9-17 
-Refer to Figure 9-17. When comparing no trade to free trade, the gains from trade amount to

Accepted Answer

A)   $400.
B)   $600.
C)   $750.
D)   $1,000.E) None of the above
F) All of the above

Question 2

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5. If this country allows free trade in tricycles,

Accepted Answer

A)   consumers will gain and producers will lose.
B)   consumers will lose and producers will gain.
C)   both consumers and producers will gain.
D)   both consumers and producers will lose.E) None of the above
F) A) and D)

Question 3

Figure 9-10. The figure applies to Mexico and the good is rifles. 
-Refer to Figure 9-10. With trade, the equilibrium price of rifles and the equilibrium quantity of rifles demanded in Mexico are

Accepted Answer

A)   P1 and Q1.
B)   P1 and Q2.
C)   P2 and Q2.
D)   P0 and Q0.E) A) and B)
F) A) and C)

Question 4

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

Question 5

Figure 9-13 
-Refer to Figure 9-13. With trade, domestic production and domestic consumption, respectively, are

Accepted Answer

A)   600 and 600.
B)   600 and 300.
C)   300 and 900.
D)   600 and 900.E) A) and B)
F) A) and C)

Question 6

Figure 9-3. The domestic country is China. 
-Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Accepted Answer

A)   $400.
B)   $500.
C)   $600.
D)   $750.E) A) and B)
F) None of the above

Question 7

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, how many units will be imported?

Accepted Answer

With trade and a tar...

Question 8

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-26. Suppose the world price in this market is $7. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Accepted Answer

With trade, consumer...

Question 9

Which of the following is the most accurate statement?

Accepted Answer

A)   Protection is necessary in order for young industries to grow up and be successful.
B)   Protection is not necessary for an industry to grow.
C)   Protection is necessary because if young industries are not protected, they may suffer losses.
D)   Protection may not always be necessary for infant industries, but it has proven to be useful in most cases.E) A) and B)
F) B) and D)

Question 10

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2. This country

Accepted Answer

A)   has a comparative advantage in calculators.
B)   should export calculators.
C)   is a price taker in the world economy.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 11

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Accepted Answer

A)   More Danish-produced chips are sold in Denmark.
B)   More foreign-produced chips are sold in Denmark.
C)   Danish consumers of chips become better off.
D)   Total surplus in the Danish chip market increases.E) B) and C)
F) A) and D)

Question 12

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1. With trade, total surplus in the Guatemalan coffee market amounts to

Accepted Answer

A)   1,250.
B)   1,468.
C)   1,870.
D)   1,980.E) B) and C)
F) A) and D)

Question 13

For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that

Accepted Answer

A)   an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus.
B)   an import quota has no effect on producer surplus, while a tariff decreases producer surplus.
C)   a tariff raises total surplus, while an import quota does not.
D)   a tariff raises revenue for that country's government, while an import quota does not.E) None of the above
F) A) and B)

Question 14

Figure 9-1
The figure illustrates the market for coffee in Guatemala. 
-Refer to Figure 9-1. In the absence of trade, total surplus in the Guatemalan coffee market amounts to

Accepted Answer

A)   750.
B)   1,100.
C)   1,514.
D)   1,650.E) A) and B)
F) A) and D)

Question 15

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 16

Economists view the fact that Florida grows oranges, Texas pumps oil, and California makes wine as

Accepted Answer

A)   confirmation of the virtues of free trade.
B)   confirmation of the infant-industry argument.
C)   confirmation that free trade agreements are not necessary.
D)   confirmation that specialization in absolute advantage works.E) B) and D)
F) A) and D)

Question 17

If the world price of apples is higher than Argentina's domestic price of apples without trade, then Argentina

Accepted Answer

A)   should import apples.
B)   has a comparative advantage in apples.
C)   should produce just enough apples to meet its domestic demand.
D)   should refrain altogether from producing apples.E) A) and B)
F) All of the above

Question 18

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

Accepted Answer

A)   will export pecans (assuming trade is allowed) .
B)   will import pecans (assuming trade is allowed) .
C)   has a comparative advantage in producing pecans.
D)   All of the above are correct.E) All of the above
F) A) and D)

Question 19

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

Question 20

Figure 9-3. The domestic country is China. 
-Refer to Figure 9-3. With trade, China will

Accepted Answer

A)   import 100 pencil sharpeners.
B)   import 250 pencil sharpeners.
C)   export 150 pencil sharpeners.
D)   export 250 pencil sharpeners.E) A) and C)
F) B) and C)

Exam 9: Application: International Trade

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. With trade, the equilibrium price of rifles and the equilibrium quantity of rifles demanded in Mexico are

Correct Answer
verified

For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that

Correct Answer
verified

Economists view the fact that Florida grows oranges, Texas pumps oil, and California makes wine as

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

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. If this country allows free trade in tricycles,

Correct Answer
verified

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. This country

Correct Answer
verified

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. In the absence of trade, total surplus in the Guatemalan coffee market amounts to

Correct Answer
verified

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct Answer
verified

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Correct Answer
verified

If the world price of apples is higher than Argentina's domestic price of apples without trade, then Argentina

Correct Answer
verified

Which of the following is the most accurate statement?

Correct Answer
verified

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26. Suppose the world price in this market is $7. 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 9-3. The domestic country is China. -Refer to Figure 9-3. With trade, China will

Correct Answer
verified

Figure 9-17 -Refer to Figure 9-17. When comparing no trade to free trade, the gains from trade amount to

Correct Answer
verified

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Correct Answer
verified

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

Correct Answer
verified

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

Correct Answer
verified

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

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. With trade, total surplus in the Guatemalan coffee market amounts to

Correct Answer
verified

Figure 9-13 -Refer to Figure 9-13. With trade, domestic production and domestic consumption, respectively, are

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-10. The figure applies to Mexico and the good is rifles. -Refer to Figure 9-10. With trade, the equilibrium price of rifles and the equilibrium quantity of rifles demanded in Mexico are

Correct AnswerverifiedShow Answer

For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that

Correct AnswerverifiedShow Answer

Economists view the fact that Florida grows oranges, Texas pumps oil, and California makes wine as

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

Figure 9-5 The figure illustrates the market for tricycles in a country. -Refer to Figure 9-5. If this country allows free trade in tricycles,

Correct AnswerverifiedShow Answer

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. This country

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. In the absence of trade, total surplus in the Guatemalan coffee market amounts to

Correct AnswerverifiedShow Answer

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct AnswerverifiedShow Answer

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is

Correct AnswerverifiedShow Answer

If the world price of apples is higher than Argentina's domestic price of apples without trade, then Argentina

Correct AnswerverifiedShow Answer

Which of the following is the most accurate statement?

Correct AnswerverifiedShow Answer

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26. Suppose the world price in this market is $7. 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 9-3. The domestic country is China. -Refer to Figure 9-3. With trade, China will

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17. When comparing no trade to free trade, the gains from trade amount to

Correct AnswerverifiedShow Answer

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India

Correct AnswerverifiedShow Answer

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

Figure 9-1 The figure illustrates the market for coffee in Guatemala. -Refer to Figure 9-1. With trade, total surplus in the Guatemalan coffee market amounts to

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13. With trade, domestic production and domestic consumption, respectively, are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified