Filters
Question type
Study Flashcards

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


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

Correct Answer

verifed

verified

Figure 9-5 Figure 9-5 -Refer to Figure 9-5.Without trade,producer surplus amounts to A) $210. B) $245. C) $450. D) $455. -Refer to Figure 9-5.Without trade,producer surplus amounts to


A) $210.
B) $245.
C) $450.
D) $455.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Several arguments for restricting trade have been advanced.Those arguments do not include


A) the jobs argument.
B) the protection-as-a-bargaining-chip argument.
C) the no-deadweight-loss argument.
D) the infant-industry argument.

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

Correct Answer

verifed

verified

Using the graph below,answer the following questions about hammers. 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? 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?

Correct Answer

verifed

verified

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

View Answer

Figure 9-17 Figure 9-17 -Refer to Figure 9-17.Without trade,total surplus is A) $600. B) $1,200. C) $1,800. D) $2,250. -Refer to Figure 9-17.Without trade,total surplus is


A) $600.
B) $1,200.
C) $1,800.
D) $2,250.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Figure 9-2 Figure 9-2 -Refer to Figure 9-2.Without trade,consumer surplus is A) $210. B) $245. C) $455. D) $490. -Refer to Figure 9-2.Without trade,consumer surplus is


A) $210.
B) $245.
C) $455.
D) $490.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. -Refer to Figure 9-14.A result of this country allowing international trade in crude oil is as follows: A) The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel. B) The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel. C) The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear. D) All of the above are correct. -Refer to Figure 9-14.A result of this country allowing international trade in crude oil is as follows:


A) The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.
B) The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel.
C) The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear.
D) All of the above are correct.

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

The rules established under the General Agreement on Tariffs and Trade (GATT)are enforced by an international body called the World Trade Organization (WTO).

A) True
B) False

Correct Answer

verifed

verified

When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel,then the domestic price of steel will increase as a result.

A) True
B) False

Correct Answer

verifed

verified

Figure 9-11 Figure 9-11 -Refer to Figure 9-11.The change in total surplus in this market because of trade is A) A, and this area represents a loss of total surplus. B) B, and this area represents a gain in total surplus. C) C, and this area represents a loss of total surplus. D) D, and this area represents a gain in total surplus. -Refer to Figure 9-11.The change in total surplus in this market because of trade is


A) A, and this area represents a loss of total surplus.
B) B, and this area represents a gain in total surplus.
C) C, and this area represents a loss of total surplus.
D) D, and this area represents a gain in total surplus.

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

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


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) A) and B)
F) C) and D)

Correct Answer

verifed

verified

The infant-industry argument


A) is based on the belief that protecting industries when they are young will pay off later.
B) is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children.
C) has the support of most economists.
D) is an argument that is advanced by advocates of free trade.

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

Correct Answer

verifed

verified

Turkey is an importer of wheat.The world price of a bushel of wheat is $7.Turkey imposes a $3-per-bushel tariff on wheat.Turkey is a price-taker in the wheat market.As a result of the tariff,


A) Turkish consumers of wheat become worse off and Turkish producers of wheat become worse off.
B) Turkish consumers of wheat become worse off and Turkish producers of wheat become better off.
C) Turkish consumers of wheat become better off and Turkish producers of wheat become worse off.
D) Turkish consumers of wheat become better off and Turkish producers of wheat become better off.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

The history of the textile industry raises important questions for economic policy.

A) True
B) False

Correct Answer

verifed

verified

Figure 9-5 Figure 9-5 -Refer to Figure 9-5.Without trade,consumer surplus amounts to A) $210.50. B) $245.50. C) $367.50. D) $607.50. -Refer to Figure 9-5.Without trade,consumer surplus amounts to


A) $210.50.
B) $245.50.
C) $367.50.
D) $607.50.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Figure 9-17 Figure 9-17 -Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is A) $32. B) $288. C) $368. D) $720. -Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is


A) $32.
B) $288.
C) $368.
D) $720.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an exporter of a particular good,


A) producer surplus increases and total surplus increases in the market for that good.
B) producer surplus increases and total surplus decreases in the market for that good.
C) producer surplus decreases and total surplus increases in the market for that good.
D) producer surplus decreases and total surplus decreases in the market for that good.

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

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

A) True
B) False

Correct Answer

verifed

verified

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


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

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Congresswoman Gaga represents a state in which several firms manufacture furniture.She wants to impose tariffs on all imported furniture.Which of the following is the least likely consequence of such tariffs?


A) Domestic furniture buyers will lose consumer surplus, have less variety, and will pay higher prices.
B) Domestic furniture producers will gain producer surplus.
C) Domestic furniture producers will have a higher rate of technological advance.
D) Domestic furniture producers will have more market power.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Showing 381 - 400 of 410

Related Exams

Exam 1

Ten Principles of Economics.

349 Questions

Exam 2

Thinking Like an Economist.

535 Questions

Exam 3

Interdependence and the Gains from Trade.

443 Questions

Exam 4

The Market Forces of Supply and Demand.

571 Questions

Exam 5

Elasticity and Its Application

510 Questions

Exam 6

Supply, Demand, And Government Policies.

557 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets.

460 Questions

Exam 8

Application: The Costs of Taxation.

424 Questions

Exam 10

Externalities.

441 Questions

Exam 11

Public Goods and Common Resources.

349 Questions

Exam 12

The Design of the Tax System.

478 Questions

Exam 13

The Costs of Production.

533 Questions

Exam 14

Firms in Competitive Markets.

478 Questions

Exam 15

Monopoly.

526 Questions

Exam 16

Monopolistic Competition.

497 Questions

Exam 17

Oligopoly.

410 Questions

Exam 18

The Market For the Factors of Production.

463 Questions

Exam 19

Earnings and Discrimination.

398 Questions

Exam 20

Income Inequality and Poverty.

374 Questions

Exam 21

The Theory of Consumer Choice.

462 Questions

Exam 22

Frontiers in Microeconomics.

353 Questions

Show Answer