Question 1

Which of the following tools and concepts is useful in the analysis of international trade?

Accepted Answer

A)   total surplus
B)   domestic supply
C)   equilibrium price
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 2

Figure 9-9 
-Refer to Figure 9-9.Total surplus in this market after trade is

Accepted Answer

A)   A + B.
B)   A + B + C.
C)   A + B + C + D.
D)   B + C + D.E) None of the above
F) A) and D)

Question 3

The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

Accepted Answer

A)   Pineland has a comparative advantage,relative to other countries,in producing fish.
B)   other countries have a comparative advantage,relative to Pineland,in producing pineapples.
C)   the price of pineapples in Pineland exceeds the world price of pineapples.
D)   if Pineland were to allow trade,it would import fish.E) A) and D)
F) B) and C)

Question 4

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 experience a shortage of wool if trade is not allowed.
B)   Scotland will experience a surplus of wool if trade is not allowed.
C)   Scotland has a comparative advantage in producing wool,relative to the rest of the world.
D)   foreign countries have a comparative advantage in producing wool,relative to Scotland.E) A) and B)
F) All of the above

Question 5

Figure 9-13 
-Refer to Figure 9-13.Consumer surplus after trade is

Accepted Answer

A)   $3,600.
B)   $5,400.
C)   $7,200.
D)   $8,100.E) None of the above
F) A) and D)

Question 6

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Accepted Answer

A)   national-security argument.
B)   infant-industry argument.
C)   unfair-competition argument.
D)   jobs argument.E) All of the above
F) B) and D)

Question 7

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

Accepted Answer

A) True 
 B)False

Question 8

Patterns of trade among nations are primarily determined by

Accepted Answer

A)   cultural considerations.
B)   political considerations.
C)   comparative advantage.
D)   differences in the income elasticity of demand among nations.E) B) and C)
F) A) and D)

Question 9

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Accepted Answer

A) True 
 B)False

Question 10

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,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,

Accepted Answer

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

Question 11

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,relative to the no-trade situation,international trade in cardboard

Accepted Answer

A)   benefits Boxlandian consumers by $750 and harms Boxlandian producers by $660.
B)   harms Boxlandian consumers by $736 and harms Boxlandian producers by $598.
C)   harms Boxlandian consumers by $704 and benefits Boxlandian producers by $864.
D)   harms Boxlandian consumers by $804 and benefits Boxlandian producers by $984.E) A) and D)
F) None of the above

Question 12

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 B)
F) All of the above

Question 13

About what percent of total world trade is accounted for by countries that belong to the World Trade Organization?

Accepted Answer

A)   54 percent
B)   72 percent
C)   89 percent
D)   97 percentE) C) and D)
F) A) and B)

Question 14

Figure 9-4.The domestic country is Nicaragua. 
-Refer to Figure 9-4.Which of the following statements is accurate?

Accepted Answer

A)   Consumer surplus with trade is $3,200.
B)   Producer surplus with trade is $375.
C)   The gains from trade amount to $800.
D)   The gains from trade are represented on the graph by the area bounded by the points (0,$12) , (300,$12) , (300,$7) and (0,$7) .E) B) and C)
F) B) and D)

Question 15

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 16

Assume,for the U.S. ,that the domestic price of tea without international trade is higher than the world price of tea.This suggests that

Accepted Answer

A)   other countries have a comparative advantage over the U.S.in producing tea.
B)   the U.S.has an absolute advantage over other countries in producing tea.
C)   the U.S.will export tea if international trade is allowed.
D)   American tea buyers will become worse off if international trade is allowed.E) None of the above
F) C) and D)

Question 17

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Accepted Answer

A) True 
 B)False

Question 18

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 $45.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland?

Accepted Answer

A)   It increases consumer surplus,decreases producer surplus,and increases total surplus.
B)   It increases consumer surplus,increases producer surplus,and increases total surplus.
C)   It increases consumer surplus,decreases producer surplus,and decreases total surplus.
D)   It decreases consumer surplus,increases producer surplus,and increases total surplus.E) None of the above
F) A) and B)

Question 19

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

Accepted Answer

A)   $1,600.
B)   $2,400.
C)   $3,200.
D)   $3,600.E) B) and D)
F) A) and D)

Question 20

Figure 9-11 
-Refer to Figure 9-11.Producer surplus in this market after trade is

Accepted Answer

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

Exam 9: Application: International Trade

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct Answer
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Figure 9-4.The domestic country is Nicaragua. -Refer to Figure 9-4.Which of the following statements is accurate?

Correct Answer
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Figure 9-13 -Refer to Figure 9-13.Consumer surplus after trade is

Correct Answer
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If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

Correct Answer
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Patterns of trade among nations are primarily determined by

Correct Answer
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Which of the following tools and concepts is useful in the analysis of international trade?

Correct Answer
verified

Assume,for the U.S. ,that the domestic price of tea without international trade is higher than the world price of tea.This suggests that

Correct Answer
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Figure 9-11 -Refer to Figure 9-11.Producer surplus in this market after trade is

Correct Answer
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Figure 9-12 -Refer to Figure 9-12.Consumer surplus after trade is

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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Correct Answer
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Correct Answer
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If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Correct Answer
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Figure 9-9 -Refer to Figure 9-9.Total surplus in this market after 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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The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

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

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Correct Answer
verified

About what percent of total world trade is accounted for by countries that belong to the World Trade Organization?

Correct Answer
verified

Correct Answer
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Exam 9: Application: International Trade

Deadweight loss measures the decrease in total surplus that results from a tariff or quota.

Correct AnswerverifiedShow Answer

Figure 9-4.The domestic country is Nicaragua. -Refer to Figure 9-4.Which of the following statements is accurate?

Correct AnswerverifiedShow Answer

Figure 9-13 -Refer to Figure 9-13.Consumer surplus after trade is

Correct AnswerverifiedShow Answer

If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices,the Swedish economy would be worse off.

Correct AnswerverifiedShow Answer

Patterns of trade among nations are primarily determined by

Correct AnswerverifiedShow Answer

Which of the following tools and concepts is useful in the analysis of international trade?

Correct AnswerverifiedShow Answer

Assume,for the U.S. ,that the domestic price of tea without international trade is higher than the world price of tea.This suggests that

Correct AnswerverifiedShow Answer

Figure 9-11 -Refer to Figure 9-11.Producer surplus in this market after trade is

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

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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 AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Correct AnswerverifiedShow Answer

Figure 9-9 -Refer to Figure 9-9.Total surplus in this market after trade is

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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 AnswerverifiedShow Answer

The nation of Pineland forbids international trade.In Pineland,you can buy 1 pound of fish for 2 pounds of pineapples.In other countries,you can buy 1 pound of fish for 1.5 pounds of pineapples.These facts indicate that

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

"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run." This observation helps to explain why many economists are skeptical about the

Correct AnswerverifiedShow Answer

About what percent of total world trade is accounted for by countries that belong to the World Trade Organization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow 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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