Filters
Question type
Study Flashcards

Figure 9-15 Figure 9-15 -Refer to Figure 9-15. Consumer surplus with the tariff is A) A. B) A + B. C) A + C + G. D) A + B + C + D +E + F. -Refer to Figure 9-15. Consumer surplus with the tariff is


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

E) B) and D)
F) A) and D)

Correct Answer

verifed

verified

Scenario 9-3 Suppose domestic demand and domestic supply in a market are given by the following equations: Scenario 9-3 Suppose domestic demand and domestic supply in a market are given by the following equations: -Refer to Scenario 9-3. Suppose the world price in this market is $8 per unit. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported? -Refer to Scenario 9-3. Suppose the world price in this market is $8 per unit. If the country allows free trade, will the country import or export this good, and how many units will be imported/exported?

Correct Answer

verifed

verified

The countr...

View Answer

Suppose Ukraine subsidizes Ukrainian wheat farmers, while Russia offers no subsidy to Russian wheat farmers. As a result of the Ukrainian subsidy, sales of Ukrainian wheat to Russia


A) may prompt Russian farmers to invoke the infant-industry argument.
B) increase the consumer surplus of Russian buyers of wheat.
C) decrease the total surplus of the Russian people.
D) All of the above are correct.

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

Correct Answer

verifed

verified

Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The U.S. is a price-taker in the market for peaches. -Refer to Scenario 9-1. If trade in peaches is allowed, the price of peaches in the United States


A) will increase, and this will cause consumer surplus to decrease.
B) will decrease, and this will cause consumer surplus to increase.
C) will be unaffected, and consumer surplus will be unaffected as well.
D) could increase or decrease or be unaffected; this cannot be determined.

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

Correct Answer

verifed

verified

Figure 9-15 Figure 9-15 -Refer to Figure 9-15. Producer surplus with the tariff is A) G. B) C + G. C) A + C + G. D) A + B + C + G. -Refer to Figure 9-15. Producer surplus with the tariff is


A) G.
B) C + G.
C) A + C + G.
D) A + B + C + G.

E) A) and B)
F) A) and D)

Correct Answer

verifed

verified

Figure 9-6 The figure illustrates the market for roses in a country. Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. With trade and without a tariff, A) the domestic price is equal to the world price. B) roses are sold at $4 in this market. C) there is a shortage of 400 roses in this market. D) this country imports 200 roses. -Refer to Figure 9-6. With trade and without a tariff,


A) the domestic price is equal to the world price.
B) roses are sold at $4 in this market.
C) there is a shortage of 400 roses in this market.
D) this country imports 200 roses.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Figure 9-12 Figure 9-12 -Refer to Figure 9-12. Producer surplus before trade is A) $14,400. B) $16,800. C) $21,600. D) $24,800. -Refer to Figure 9-12. Producer surplus before trade is


A) $14,400.
B) $16,800.
C) $21,600.
D) $24,800.

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

Correct Answer

verifed

verified

One should be especially wary of the national-security argument for restricting trade when that argument is made by


A) representatives of industry.
B) representatives of the defense establishment.
C) members of households.
D) foreign government officials.

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

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. Mexico's gains from trade are represented by the area that is bounded by the points A) (0, P<sub>0</sub>) , (Q<sub>0</sub>, P<sub>0</sub>) , (Q<sub>2</sub>, P<sub>1</sub>) , and (0, P<sub>1</sub>) . B) (0, P<sub>1</sub>) , (0, P<sub>2</sub>) , (Q<sub>0</sub>, P<sub>0</sub>) , and (Q<sub>1</sub>, P<sub>1</sub>) . C) (Q<sub>0</sub>, P<sub>0</sub>) , (Q<sub>2</sub>, P<sub>1</sub>) , and (Q<sub>1</sub>, P<sub>1</sub>) . D) (0, P<sub>0</sub>) , (0, P<sub>2</sub>) , and (Q<sub>0</sub>, P<sub>0</sub>) . -Refer to Figure 9-10. Mexico's gains from trade are represented by the area that is bounded by the points


A) (0, P0) , (Q0, P0) , (Q2, P1) , and (0, P1) .
B) (0, P1) , (0, P2) , (Q0, P0) , and (Q1, P1) .
C) (Q0, P0) , (Q2, P1) , and (Q1, P1) .
D) (0, P0) , (0, P2) , and (Q0, P0) .

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

Correct Answer

verifed

verified

Characterize the two different approaches a nation can take to achieve free trade. Does one approach have an advantage over the other?

Correct Answer

verifed

verified

A unilateral approach is when a country ...

View Answer

Figure 9-11 Figure 9-11 -Refer to Figure 9-11. Producer surplus in this market before trade is A) C. B) B + C. C) A + B + D. D) B + C + D. -Refer to Figure 9-11. Producer surplus in this market before trade is


A) C.
B) B + C.
C) A + B + D.
D) B + C + D.

E) A) and C)
F) C) and D)

Correct Answer

verifed

verified

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?

Correct Answer

verifed

verified

Nash will ...

View Answer

Figure 9-29 The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit. Figure 9-29 The following diagram shows the domestic demand and domestic supply curves in a market. Assume that the world price in this market is $1 per unit. -Refer to Figure 9-29. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade? -Refer to Figure 9-29. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer

verifed

verified

With trade, consumer...

View 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.

A) True
B) False

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

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

Scenario 9-2 -For a small country called Boxland, the equation of the domestic demand curve for cardboard is 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. where 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. 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 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. where 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. 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 produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. 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 produces which of the following results for Boxland?


A) It decreases consumer surplus, increases producer surplus, and decreases total surplus.
B) It decreases consumer surplus, increases producer surplus, and increases total surplus.
C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus.
D) It increases consumer surplus, increases producer surplus, and increases total surplus.

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

Correct Answer

verifed

verified

Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?


A) producers of incense and consumers of steel
B) consumers of all three goods
C) consumers of incense and producers of rugs
D) producers of steel and consumers of incense

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

Correct Answer

verifed

verified

Figure 9-2 The figure illustrates the market for calculators in a country. Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. If this country chooses to trade, the price of calculators in this country will be A) $15 and 80 calculators will be sold domestically. B) $15 and 130 calculators will be sold domestically. C) $20 and 80 calculators will be sold domestically. D) $20 and 130 calculators will be sold domestically. -Refer to Figure 9-2. If this country chooses to trade, the price of calculators in this country will be


A) $15 and 80 calculators will be sold domestically.
B) $15 and 130 calculators will be sold domestically.
C) $20 and 80 calculators will be sold domestically.
D) $20 and 130 calculators will be sold domestically.

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

Correct Answer

verifed

verified

Figure 9-3. The domestic country is China. Figure 9-3. The domestic country is China. -Refer to Figure 9-3. With trade, producer surplus in China is A) $800. B) $1,200. C) $1,800. D) $2,700. -Refer to Figure 9-3. With trade, producer surplus in China is


A) $800.
B) $1,200.
C) $1,800.
D) $2,700.

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

Correct Answer

verifed

verified

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?

Correct Answer

verifed

verified

Jumanji wi...

View Answer

Showing 301 - 320 of 493

Related Exams

Exam 1

Ten Principles of Economics

439 Questions

Exam 2

Thinking Like an Economist

617 Questions

Exam 3

Interdependence and the Gains From Trade

527 Questions

Exam 4

The Market Forces of Supply and Demand

698 Questions

Exam 5

Elasticity and Its Application

595 Questions

Exam 6

Supply, Demand, and Government Policies

644 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets

549 Questions

Exam 8

Application: The Costs of Taxation

511 Questions

Exam 10

Externalities

524 Questions

Exam 11

Public Goods and Common Resources

433 Questions

Exam 12

The Design of the Tax System

551 Questions

Exam 13

The Costs of Production

420 Questions

Exam 14

Firms in Competitive Markets

543 Questions

Exam 15

Monopoly

637 Questions

Exam 16

Monopolistic Competition

587 Questions

Exam 17

Oligopoly

496 Questions

Exam 18

The Markets for the Factors of Production

564 Questions

Exam 19

Earnings and Discrimination

490 Questions

Exam 20

Income Inequality and Poverty

457 Questions

Exam 21

The Theory of Consumer Choice

440 Questions

Exam 22

Frontiers of Microeconomics

441 Questions

Show Answer