Question 1

When a country allows trade and becomes an importer of a good,which of the following would NOT be the case

Accepted Answer

A)  The gains of domestic consumers exceed the losses of domestic producers.
B)  The losses of domestic producers exceed the gains of domestic consumers.
C)  The price paid by domestic consumers of the good decreases.
D)  The price received by domestic producers of the good decreases.E) All of the above
F) B) and C)

Question 2

What happens if the Japanese steel industry subsidizes the steel that it sells to Canada

Accepted Answer

A)  Canada should protect its domestic steel industry from this unfair competition.
B)  The harm done to Canadian steel producers from this unfair competition exceeds the gain to Canadian consumers of cheap Japanese steel.
C)  The harm done to Canadian steel producers is less than the benefit to Canadian consumers of steel.
D)  Canada should subsidize the products it sells to Japan.E) A) and B)
F) All of the above

Question 3

Figure 9-12
 
-Refer to Figure 9-12.What would consumer surplus be after the tariff

Accepted Answer

A)  A
B)  A + B
C)  A + B + C
D)  A + C + GE) B) and D)
F) B) and C)

Question 4

What are the arguments in favour of trade restrictions, and what are the counterarguments? As an economist, do any of these arguments justify trade restrictions? Explain.

Accepted Answer

Arguments mentioned in the text include ...

Question 5

When a country allows trade and becomes an importer of a good,what happens to consumer surplus and producer surplus

Accepted Answer

A)  Consumer surplus and producer surplus will increase.
B)  Consumer surplus and producer surplus will decrease.
C)  Consumer surplus will increase, and producer surplus will decrease.
D)  Consumer surplus will decrease, and producer surplus will increase.E) All of the above
F) B) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If the United Kingdom imports teacups from other countries,U.K.producers of teacups are better off as a result of trade,but U.K.consumers of teacups are worse off.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an argument for restricting trade

Accepted Answer

A)  the jobs argument
B)  the national-security argument
C)  the infant-industry argument
D)  the efficiency argumentE) B) and D)
F) B) and C)

Question 9

What is a tariff

Accepted Answer

A)  a tax on imported goods
B)  a tax on exported goods
C)  a limit on imported goods
D)  a tax on luxury goodsE) B) and D)
F) A) and B)

Question 10

Opponents of free trade often want Canada to prohibit the import of goods made in overseas factories that pay wages below the Canadian minimum wage.What will prohibiting such goods likely do

Accepted Answer

A)  cause these factories to pay the Canadian minimum wage
B)  increase the rate of technological advance in poor countries so that they can afford to pay higher wages
C)  increase poverty in poor countries and benefit Canadian firms that compete with these imports
D)  harm Canadian firms that compete with these importsE) B) and C)
F) All of the above

Question 11

What will a tariff and an import quota do to the quantity of imports and the domestic price

Accepted Answer

A)  increase the quantity of imports and raise domestic price
B)  increase the quantity of imports and lower domestic price
C)  reduce the quantity of imports and raise domestic price
D)  reduce the quantity of imports and lower domestic priceE) None of the above
F) B) and C)

Question 12

Figure 9-6
 
-Refer to Figure 9-6.How many wagons would this country import or export

Accepted Answer

A)  export 20 wagons
B)  import 20 wagons
C)  import 30 wagons
D)  import 50 wagonsE) B) and C)
F) None of the above

Question 13

Figure 9-6
 
-Refer to Figure 9-6.If this country allows free trade in wagons,what will be the result

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

Question 14

What happens when a country allows trade and becomes an exporter of a good

Accepted Answer

A)  Domestic producers gain, and domestic consumers lose.
B)  Domestic producers lose, and domestic consumers gain.
C)  Domestic producers and domestic consumers both gain.
D)  Domestic producers and domestic consumers both lose.E) A) and B)
F) A) and C)

Question 15

Figure 9-2
 
-Refer to Figure 9-2.If China chooses to trade,what would the price of pencil sharpeners in China be and how many would be sold domestically

Accepted Answer

A)  $12 and 200 would be sold domestically
B)  $16 and 200 would be sold domestically
C)  $16 and 300 would be sold domestically
D)  $16 and 450 would be sold domesticallyE) A) and B)
F) A) and C)

Question 16

Suppose the domestic supply and demand for snowboards in Canada are given by the following equations:
QS = -110 + 3P
QD = 390 - 2P
a.In the absence of international trade in snowboards,what will the domestic price be
b.In the absence of international trade in snowboards,how many snowboards will be sold in Canada
c.If Canada could trade snowboards freely with the rest of the world at the price of $80,how many snowboards will be produced in Canada
d.If Canada could trade snowboards freely with the rest of the world at the price of $80,how many snowboards will be purchased in Canada
e.If Canada trades snowboards freely with the rest of the world at the price of $80,should Canada import or export snowboards
 And how many
f.In the absence of trade,what is the consumer surplus and producer surplus in Canada for the snowboard market
g.If Canada could trade snowboards freely with the rest of the world at the price of $80,what is the consumer surplus and producer surplus in Canada for the market for snowboards
h.What is the change in total surplus after the opening of free trade

Accepted Answer

a.Q_S= Qd; P* = $100
b.Q* = 190
c.Q_S= -110 ...

Question 17

Which industry was a major part of the Canadian economy a century ago,but not now

Accepted Answer

A)  agriculture
B)  textile and clothing
C)  coal mining
D)  automobileE) B) and D)
F) A) and D)

Question 18

Whereas an export tax allows each firm to decide on its production volume in response to a market price,what does a quota do

Accepted Answer

A)  It dictates the minimum quantity each can produce.
B)  It dictates the maximum quantity each can produce.
C)  It dictates the maximum price each can charge.
D)  It dictates the minimum price each can charge.E) B) and C)
F) C) and D)

Question 19

Which of the following are countries that limit foreign trade likely to do

Accepted Answer

A)  forego the additional surplus that trade allows, but probably enjoy economies of scale
B)  forego the additional surplus that trade allows, but be compensated by a higher rate of technological change
C)  forego the additional surplus that trade allows, but have a lower rate of unemployment
D)  forego the additional surplus that trade allows, but have more firms with domestic market powerE) B) and C)
F) C) and D)

Question 20

When a country takes a unilateral approach to free trade,what happens

Accepted Answer

A)  It removes trade restrictions on its own.
B)  It reduces its trade restrictions while other countries do the same.
C)  It does not remove trade restrictions.
D)  It removes all trade restrictions.E) A) and B)
F) A) and C)

Exam 9: Application: International Trade

If the United Kingdom imports teacups from other countries,U.K.producers of teacups are better off as a result of trade,but U.K.consumers of teacups are worse off.

Correct Answer
verified

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

Correct Answer
verified

Figure 9-6 -Refer to Figure 9-6.If this country allows free trade in wagons,what will be the result

Correct Answer
verified

Opponents of free trade often want Canada to prohibit the import of goods made in overseas factories that pay wages below the Canadian minimum wage.What will prohibiting such goods likely do

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2.If China chooses to trade,what would the price of pencil sharpeners in China be and how many would be sold domestically

Correct Answer
verified

What happens if the Japanese steel industry subsidizes the steel that it sells to Canada

Correct Answer
verified

Which industry was a major part of the Canadian economy a century ago,but not now

Correct Answer
verified

Figure 9-6 -Refer to Figure 9-6.How many wagons would this country import or export

Correct Answer
verified

What is a tariff

Correct Answer
verified

Correct Answer
verified
a.Q_S= Qd; P* = $100
b.Q* = 190
c.Q_S= -110 ...
View Answer

When a country allows trade and becomes an importer of a good,which of the following would NOT be the case

Correct Answer
verified

When a country allows trade and becomes an importer of a good,what happens to consumer surplus and producer surplus

Correct Answer
verified

What will a tariff and an import quota do to the quantity of imports and the domestic price

Correct Answer
verified

What happens when a country allows trade and becomes an exporter of a good

Correct Answer
verified

Figure 9-12 -Refer to Figure 9-12.What would consumer surplus be after the tariff

Correct Answer
verified

Which of the following are countries that limit foreign trade likely to do

Correct Answer
verified

What are the arguments in favour of trade restrictions, and what are the counterarguments? As an economist, do any of these arguments justify trade restrictions? Explain.

Correct Answer
verified
Arguments mentioned in the text include ...
View Answer

Whereas an export tax allows each firm to decide on its production volume in response to a market price,what does a quota do

Correct Answer
verified

When a country takes a unilateral approach to free trade,what happens

Correct Answer
verified

Which of the following is NOT an argument for restricting trade

Correct Answer
verified

Exam 9: Application: International Trade

If the United Kingdom imports teacups from other countries,U.K.producers of teacups are better off as a result of trade,but U.K.consumers of teacups are worse off.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-6 -Refer to Figure 9-6.If this country allows free trade in wagons,what will be the result

Correct AnswerverifiedShow Answer

Opponents of free trade often want Canada to prohibit the import of goods made in overseas factories that pay wages below the Canadian minimum wage.What will prohibiting such goods likely do

Correct AnswerverifiedShow Answer

Figure 9-2 -Refer to Figure 9-2.If China chooses to trade,what would the price of pencil sharpeners in China be and how many would be sold domestically

Correct AnswerverifiedShow Answer

What happens if the Japanese steel industry subsidizes the steel that it sells to Canada

Correct AnswerverifiedShow Answer

Which industry was a major part of the Canadian economy a century ago,but not now

Correct AnswerverifiedShow Answer

Figure 9-6 -Refer to Figure 9-6.How many wagons would this country import or export

Correct AnswerverifiedShow Answer

What is a tariff

Correct AnswerverifiedShow Answer

Correct Answerverifieda.QS = Qd; P* = $100b.Q* = 190c.QS = -110 ...View AnswerShow Answer

When a country allows trade and becomes an importer of a good,which of the following would NOT be the case

Correct AnswerverifiedShow Answer

When a country allows trade and becomes an importer of a good,what happens to consumer surplus and producer surplus

Correct AnswerverifiedShow Answer

What will a tariff and an import quota do to the quantity of imports and the domestic price

Correct AnswerverifiedShow Answer

What happens when a country allows trade and becomes an exporter of a good

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12.What would consumer surplus be after the tariff

Correct AnswerverifiedShow Answer

Which of the following are countries that limit foreign trade likely to do

Correct AnswerverifiedShow Answer

What are the arguments in favour of trade restrictions, and what are the counterarguments? As an economist, do any of these arguments justify trade restrictions? Explain.

Correct AnswerverifiedArguments mentioned in the text include ...View AnswerShow Answer

Whereas an export tax allows each firm to decide on its production volume in response to a market price,what does a quota do

Correct AnswerverifiedShow Answer

When a country takes a unilateral approach to free trade,what happens

Correct AnswerverifiedShow Answer

Which of the following is NOT an argument for restricting trade

Correct AnswerverifiedShow 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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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
verified
a.Q_S= Qd; P* = $100
b.Q* = 190
c.Q_S= -110 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Arguments mentioned in the text include ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified