Question 1

If a country allows trade and,for a certain good,the domestic price without trade is lower than the world price,

Accepted Answer

A)   the country will be an exporter of the good.
B)   the country will be an importer of the good.
C)   the country will be neither an exporter nor an importer of the good.
D)   Additional information is needed about demand to determine whether the country will be an exporter of the good,an importer of the good,or neither.E) B) and C)
F) C) and D)

Question 2

Scenario 9-2
For a small country called Boxland,the equation of the domestic demand curve for cardboard is  ,
where  represents the domestic quantity of cardboard demanded,in tons,and  represents the price of a ton of cardboard.
For Boxland,the equation of the domestic supply curve for cardboard is  ,
where  represents the domestic quantity of cardboard supplied,in tons,and  again represents the price of a ton of cardboard.
-Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then Boxland's gains from international trade in cardboard amount to

Accepted Answer

A)   $145.
B)   $160.
C)   $210.
D)   $320.E) B) and C)
F) A) and D)

Question 3

Figure 9-2
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 9-2.With free trade,the country imports

Accepted Answer

A)   300 units of the good.
B)   600 units of the good.
C)   900 units of the good.
D)   1,200 units of the good.E) B) and D)
F) C) and D)

Question 4

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Accepted Answer

A) True 
 B)False

Question 5

If a country is an exporter of a good,then it must be the case that

Accepted Answer

A)   the world price is less than its domestic price.
B)   consumer surplus is higher than a no trade situation.
C)   the world price is greater than its domestic price.
D)   they used an infant-industry argument to protect its producers.E) None of the above
F) B) and D)

Question 6

When the nation of Duxembourg allows trade and becomes an importer of software,

Accepted Answer

A)   residents of Duxembourg who produce software become worse off;residents of Duxembourg who buy software become better off;and the economic well-being of Duxembourg rises.
B)   residents of Duxembourg who produce software become worse off;residents of Duxembourg who buy software become better off;and the economic well-being of Duxembourg falls.
C)   residents of Duxembourg who produce software become better off;residents of Duxembourg who buy software become worse off;and the economic well-being of Duxembourg rises.
D)   residents of Duxembourg who produce software become better off;residents of Duxembourg who buy software become worse off;and the economic well-being of Duxembourg falls.E) A) and C)
F) A) and B)

Question 7

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. 
-Refer to Figure 9-16.Government revenue raised by the tariff is represented by the area

Accepted Answer

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

Question 8

Figure 9-6 
-The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become

Accepted Answer

A)   better off,its producers of fish will become better off,and on balance the citizens of Denmark will become better off
B)   worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off .
C)   worse off,its producers of fish will become better off, and on balance the citizens of Denmark will become worse off.
D)   better off,its producers of fish will become worse off,and on balance the citizens of Denmark will become better off.E) A) and C)
F) A) and B)

Question 9

Figure 9-5 
-Refer to Figure 9-5.If this country allows free trade in wagons,

Accepted Answer

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

Question 10

The nation of Cranolia used to prohibit international trade,but now trade is allowed,and Cranolia is exporting furniture.Relative to the previous no-trade situation,buyers of furniture in Cranolia are now better off.

Accepted Answer

A) True 
 B)False

Question 11

A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach,because the multilateral approach can reduce trade restrictions abroad as well as at home.

Accepted Answer

A) True 
 B)False

Question 12

Figure 9-15 1 and Q1. B)  P1 and Q4. C)  P2 and Q2. D)  P2 and Q3." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-15.With trade and without a tariff,the price and domestic quantity demanded are

Accepted Answer

A)   P1 and Q1.
B)   P1 and Q4.
C)   P2 and Q2.
D)   P2 and Q3.E) None of the above
F) B) and C)

Question 13

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 B)
F) All of the above

Question 14

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland. 
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $5,then the policy change results in a

Accepted Answer

A)   $25 decrease in consumer surplus.
B)   $20 increase in consumer surplus.
C)   $25 decrease in producer surplus.
D)   $20 increase in producer surplus.E) A) and B)
F) A) and C)

Question 15

Figure 9-3
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-3.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Accepted Answer

The countr...

Question 16

Figure 9-15 
-Refer to Figure 9-15.The amount of government revenue created by the tariff is

Accepted Answer

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

Question 17

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Accepted Answer

A)   consumer surplus equals producer surplus in the Wheatland corn market.
B)   total surplus exceeds consumer surplus in the Wheatland corn market.
C)   Wheatland permits international trade in corn.
D)   Wheatland forbids international trade in corn.E) None of the above
F) C) and D)

Question 18

The "unfair-competition" argument might be cited by an American who believes that

Accepted Answer

A)   almost every country has a comparative advantage,relative to the United States,in producing almost all goods.
B)   young industries should be protected against foreign competition until they become profitable.
C)   the American automobile industry should be protected against Japanese firms that are able to produce automobiles at relatively low cost.
D)   the French government's subsidies to French farmers justify restrictions on American imports of French agricultural products.E) A) and B)
F) B) and D)

Question 19

If the United Kingdom imports tea cups from other countries,then U.K.producers of tea cups are better off,and U.K.consumers of tea cups are worse off,as a result of trade.

Accepted Answer

A) True 
 B)False

Question 20

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1.From the figure it is apparent that

Accepted Answer

A)   Scotland will export wool if trade is allowed.
B)   Scotland will import wool if trade is allowed.
C)   Scotland has nothing to gain either by importing or exporting wool.
D)   the world price will fall if Scotland begins to allow its citizens to trade with other countries.E) B) and D)
F) A) and C)

Exam 9: Application: International Trade

Figure 9-15 -Refer to Figure 9-15.The amount of government revenue created by the tariff is

Correct Answer
verified

If a country is an exporter of a good,then it must be the case that

Correct Answer
verified

If a country allows trade and,for a certain good,the domestic price without trade is lower than the world price,

Correct Answer
verified

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Correct Answer
verified

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Correct Answer
verified

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.Government revenue raised by the tariff is represented by the area

Correct Answer
verified

Correct Answer
verified

Figure 9-3 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-3.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Correct Answer
verified
The countr...
View Answer

Figure 9-5 -Refer to Figure 9-5.If this country allows free trade in wagons,

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.With trade and without a tariff,the price and domestic quantity demanded are

Correct Answer
verified

If the United Kingdom imports tea cups from other countries,then U.K.producers of tea cups are better off,and U.K.consumers of tea cups are worse off,as a result of trade.

Correct Answer
verified

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

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.From the figure it is apparent that

Correct Answer
verified

Figure 9-6 -The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become

Correct Answer
verified

The nation of Cranolia used to prohibit international trade,but now trade is allowed,and Cranolia is exporting furniture.Relative to the previous no-trade situation,buyers of furniture in Cranolia are now better off.

Correct Answer
verified

Figure 9-2 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 9-2.With free trade,the country imports

Correct Answer
verified

When the nation of Duxembourg allows trade and becomes an importer of software,

Correct Answer
verified

Correct Answer
verified

A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach,because the multilateral approach can reduce trade restrictions abroad as well as at home.

Correct Answer
verified

The "unfair-competition" argument might be cited by an American who believes that

Correct Answer
verified

Exam 9: Application: International Trade

Figure 9-15 -Refer to Figure 9-15.The amount of government revenue created by the tariff is

Correct AnswerverifiedShow Answer

If a country is an exporter of a good,then it must be the case that

Correct AnswerverifiedShow Answer

If a country allows trade and,for a certain good,the domestic price without trade is lower than the world price,

Correct AnswerverifiedShow Answer

The market for corn in Wheatland consists solely of domestic buyers of corn and domestic sellers of corn if

Correct AnswerverifiedShow Answer

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Correct AnswerverifiedShow Answer

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price. -Refer to Figure 9-16.Government revenue raised by the tariff is represented by the area

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 9-3 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-3.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Correct AnswerverifiedThe countr...View AnswerShow Answer

Figure 9-5 -Refer to Figure 9-5.If this country allows free trade in wagons,

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.With trade and without a tariff,the price and domestic quantity demanded are

Correct AnswerverifiedShow Answer

If the United Kingdom imports tea cups from other countries,then U.K.producers of tea cups are better off,and U.K.consumers of tea cups are worse off,as a result of trade.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.From the figure it is apparent that

Correct AnswerverifiedShow Answer

Figure 9-6 -The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become

Correct AnswerverifiedShow Answer

The nation of Cranolia used to prohibit international trade,but now trade is allowed,and Cranolia is exporting furniture.Relative to the previous no-trade situation,buyers of furniture in Cranolia are now better off.

Correct AnswerverifiedShow Answer

Figure 9-2 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 9-2.With free trade,the country imports

Correct AnswerverifiedShow Answer

When the nation of Duxembourg allows trade and becomes an importer of software,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach,because the multilateral approach can reduce trade restrictions abroad as well as at home.

Correct AnswerverifiedShow Answer

The "unfair-competition" argument might be cited by an American who believes that

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
The countr...
View 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