Question 1

The world price of cotton is the highest price of cotton observed anywhere in the world.

Accepted Answer

A) True 
 B)False

Question 2

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,

Accepted Answer

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

Question 3

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 B)
F) A) and C)

Question 4

Figure 9-1
The figure illustrates the market for wool in New Zealand. 
-Refer to Figure 9-1.When trade is allowed,

Accepted Answer

A)   New Zealand producers of wool become better off and New Zealand consumers of wool become worse off.
B)   New Zealand consumers of wool become better off and New Zealand producers of wool become worse off.
C)   both New Zealand producers and consumers of wool become better off.
D)   both New Zealand producers and consumers of wool become worse off.E) A) and C)
F) B) and D)

Question 5

Trade raises the economic well-being of a nation in the sense that

Accepted Answer

A)   the gains of the winners exceed the losses of the losers.
B)   everyone in an economy gains from trade.
C)   since countries can choose what products to trade,they will pick those products that are most beneficial to society.
D)   the nation joins the international community when it begins to engage in trade.E) None of the above
F) A) and D)

Question 6

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

Question 7

If Argentina exports oranges to the rest of the world,Argentina's producers of oranges are worse off,and Argentina's consumers of oranges are better off,as a result of trade.

Accepted Answer

A) True 
 B)False

Question 8

Figure 9-1
The figure illustrates the market for wool in New Zealand. 
-Refer to Figure 9-1.When trade in wool is allowed,producer surplus in New Zealand

Accepted Answer

A)   increases by the area B + D.
B)   increases by the area B + D + G.
C)   decreases by the area C + F.
D)   decreases by the area G.E) A) and C)
F) A) and B)

Question 9

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 10

Figure 9-15 
-Refer to Figure 9-15.For the saddle market,area E represents

Accepted Answer

A)   government's revenue from the tariff.
B)   producer surplus after the tariff becomes effective.
C)   the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff.
D)   the decrease in total surplus,relative to the free-trade situation,as a result of the tariff.E) None of the above
F) C) and D)

Question 11

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. 0) (P1 - P0) . B)  Consumer surplus with trade = (1/2) (Q0) (P3 - P0) . C)  Consumer surplus with trade = (1/2) (Q1) (P3 - P1) . D)  None of the above is correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-7.Which of the following is a valid equation for Welsh consumer surplus with trade?

Accepted Answer

A)   Consumer surplus with trade = (1/2) (Q0) (P1 - P0) .
B)   Consumer surplus with trade = (1/2) (Q0) (P3 - P0) .
C)   Consumer surplus with trade = (1/2) (Q1) (P3 - P1) .
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 12

Figure 9-15 2 - Q1. B)  Q3 - Q2. C)  Q4 - Q3. D)  Q4 - Q3 + Q2 - Q1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Accepted Answer

A)   Q2 - Q1.
B)   Q3 - Q2.
C)   Q4 - Q3.
D)   Q4 - Q3 + Q2 - Q1.E) B) and D)
F) A) and B)

Question 13

If a country allows trade and,for a certain good,the domestic price without trade is higher 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) A) and C)

Question 14

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 15

Figure 9-15 
-Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

Accepted Answer

A)   B.
B)   E.
C)   D + F.
D)   B + D + E + F.E) All of the above
F) A) and C)

Question 16

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. 2 - Q1 is A)  the number of cameras bought and sold in Australia. B)  the number of cameras produced in Australia. C)  the number of cameras exported by Australia. D)  the number of cameras imported by Australia." 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 cameras bought and sold in Australia.
B)   the number of cameras produced in Australia.
C)   the number of cameras exported by Australia.
D)   the number of cameras imported by Australia.E) B) and C)
F) A) and C)

Question 17

Scenario 9-1
The before-trade domestic price of tomatoes in the United States is $500 per ton.The world price of tomatoes is $600 per ton.The U.S.is a price-taker in the market for tomatoes.
-Refer to Scenario 9-1.If trade in tomatoes is allowed,the

Accepted Answer

A)   price paid by American consumers of tomatoes is unchanged relative to the no-trade situation.
B)   total well-being of American producers of tomatoes is diminished relative to the no-trade situation.
C)   total well-being of American consumers of tomatoes is enhanced relative to the no-trade situation.
D)   total well-being of the United States is enhanced relative to the no-trade situation.E) A) and D)
F) B) and C)

Question 18

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. 1 - P0) (Q2 - Q1) . B)  Gains from trade = (1/2) (P1 - P0) (Q2 - Q0)  C)  Gains from trade = (1/2) (P1 - P0) (Q1 + Q2) . D)  Gains from trade = (1/2) (Q1) (P3 - P1) ." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-7.Which of the following is a valid equation for the gains from trade?

Accepted Answer

A)   Gains from trade = (1/2) (P1 - P0) (Q2 - Q1) .
B)   Gains from trade = (1/2) (P1 - P0) (Q2 - Q0) 
C)   Gains from trade = (1/2) (P1 - P0) (Q1 + Q2) .
D)   Gains from trade = (1/2) (Q1) (P3 - P1) .E) A) and B)
F) A) and C)

Question 19

Figure 9-2 
-Refer to Figure 9-2.Without trade,consumer surplus is

Accepted Answer

A)   $210.
B)   $245.
C)   $455.
D)   $490.E) None of the above
F) All of the above

Question 20

Figure 9-11 
-Refer to Figure 9-11.The change in total surplus in this market because of trade is

Accepted Answer

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) None of the above

Exam 9: Application: International Trade

Trade raises the economic well-being of a nation in the sense that

Correct Answer
verified

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

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2.Without trade,consumer surplus is

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents

Correct Answer
verified

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.Which of the following is a valid equation for the gains from trade?

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in New Zealand. -Refer to Figure 9-1.When trade in wool is allowed,producer surplus in New Zealand

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

If Argentina exports oranges to the rest of the world,Argentina's producers of oranges are worse off,and Argentina's consumers of oranges are better off,as a result of trade.

Correct Answer
verified

Figure 9-1 The figure illustrates the market for wool in New Zealand. -Refer to Figure 9-1.When trade is allowed,

Correct Answer
verified

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.Which of the following is a valid equation for Welsh consumer surplus with trade?

Correct Answer
verified

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.When trade takes place,the quantity Q₂ - Q₁ is

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 9-15 -Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

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

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,

Correct Answer
verified

Correct Answer
verified

Figure 9-11 -Refer to Figure 9-11.The change in total surplus in this market because of trade is

Correct Answer
verified

Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton.The world price of tomatoes is $600 per ton.The U.S.is a price-taker in the market for tomatoes. -Refer to Scenario 9-1.If trade in tomatoes is allowed,the

Correct Answer
verified

The world price of cotton is the highest price of cotton observed anywhere in the world.

Correct Answer
verified

Exam 9: Application: International Trade

Trade raises the economic well-being of a nation in the sense that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.A result of the tariff is that,relative to the free-trade situation,the quantity of saddles imported decreases by

Correct AnswerverifiedShow Answer

Figure 9-2 -Refer to Figure 9-2.Without trade,consumer surplus is

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents

Correct AnswerverifiedShow Answer

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.Which of the following is a valid equation for the gains from trade?

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in New Zealand. -Refer to Figure 9-1.When trade in wool is allowed,producer surplus in New Zealand

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

If Argentina exports oranges to the rest of the world,Argentina's producers of oranges are worse off,and Argentina's consumers of oranges are better off,as a result of trade.

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in New Zealand. -Refer to Figure 9-1.When trade is allowed,

Correct AnswerverifiedShow Answer

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-7.Which of the following is a valid equation for Welsh consumer surplus with trade?

Correct AnswerverifiedShow Answer

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.When trade takes place,the quantity Q2 - Q1 is

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 9-15 -Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

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

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,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 9-11 -Refer to Figure 9-11.The change in total surplus in this market because of trade is

Correct AnswerverifiedShow Answer

Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton.The world price of tomatoes is $600 per ton.The U.S.is a price-taker in the market for tomatoes. -Refer to Scenario 9-1.If trade in tomatoes is allowed,the

Correct AnswerverifiedShow Answer

The world price of cotton is the highest price of cotton observed anywhere in the world.

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

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.When trade takes place,the quantity Q₂ - Q₁ is

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