Question 1

"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Accepted Answer

A) True 
 B)False

Question 2

Figure 9-4 
-Refer to Figure 9-4. Consumer surplus in this market after trade is

Accepted Answer

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

Question 3

Figure 9-10
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 9-10. Suppose the country imposes a $1 per unit tariff. If the country allows trade with a tariff, how much is total surplus?

Accepted Answer

With trade...

Question 4

Figure 9-2  ​
-Refer to Figure 9-2. With trade, producer surplus is

Accepted Answer

A)  $19,440.
B)  $3,000.
C)  $9,720.
D)  $23,280.E) B) and C)
F) All of the above

Question 5

Figure 9-10
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 9-10. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Accepted Answer

Without trade, consu...

Question 6

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

Accepted Answer

Jumanji wi...

Question 7

Figure 9-2  ​
-Refer to Figure 9-2. With trade, consumer surplus is

Accepted Answer

A)  $19,440.
B)  $23,280.
C)  $20,280.
D)  $9,720.E) A) and B)
F) B) and C)

Question 8

Figure 9-2  ​
-Refer to Figure 9-2. With trade, the price of skateboards in this country is

Accepted Answer

A)  $33, with 200 skateboards produced in this country and another 320 skateboards imported.
B)  $33, with 360 skateboards produced in this country and another 160 skateboards imported.
C)  $57, with 200 skateboards produced in this country and another 160 skateboards imported.
D)  $57, with 360 skateboards produced in this country and another 160 skateboards imported.E) None of the above
F) A) and B)

Question 9

GATT is an example of a successful unilateral approach to achieving free trade.

Accepted Answer

A) True 
 B)False

Question 10

A tax on an imported good is called a

Accepted Answer

A)  quota.
B)  tariff.
C)  supply tax.
D)  trade tax.E) C) and D)
F) B) and C)

Question 11

Figure 9-2  ​
-Refer to Figure 9-2. Without trade, total surplus amounts to

Accepted Answer

A)  $9,720.
B)  $3,000.
C)  $23,280.
D)  $19,440.E) B) and C)
F) C) and D)

Question 12

If the Korean steel industry subsidizes the steel that it sells to the United States, the

Accepted Answer

A)  United States should protect its domestic steel industry from this unfair competition.
B)  harm done to U.S.steel producers from this unfair competition exceeds the gain to U.S.consumers of cheap Korean steel.
C)  harm done to U.S.steel producers is less than the benefit that accrues to U.S.consumers of steel.
D)  United States should subsidize the products it sells to Korea.E) A) and C)
F) C) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Figure 9-7
The following diagram shows the domestic demand and domestic supply curves in a market.  ​
-Refer to Figure 9-7. Suppose the world price in this market is $7. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Accepted Answer

With trade, consumer...

Question 15

When the nation of Duxembourg allows trade and becomes an importer of software,

Accepted Answer

A)  residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises.
B)  residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg falls.
C)  residents of Duxembourg who produce software become better off; residents of Duxembourg who buy software become worse off; and the economic well-being of Duxembourg rises.
D)  residents of Duxembourg who produce software become better off; residents of Duxembourg who buy software become worse off; and the economic well-being of Duxembourg falls.E) B) and C)
F) A) and D)

Question 16

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in

Accepted Answer

A)  Ugandan consumers paying a higher price for coffee.
B)  a decrease in producer surplus in Uganda.
C)  a decrease in total surplus in Uganda.
D)  an increase in consumer surplus.E) A) and C)
F) A) and B)

Question 17

Scenario 9-1
​
For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD = 210 − 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = -90 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard.
-Refer to Scenario 9-1. Suppose the world price of cardboard is $82.5. Then, relative to the no-trade situation, international trade in cardboard

Accepted Answer

A)  harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $1,392.19.
B)  harms Boxlandian consumers by $1,518.75 and benefits Boxlandian producers by $2,784.38.
C)  harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $2,784.38.
D)  harms Boxlandian consumers by $759.38 and benefits Boxlandian producers by $1,392.19.E) All of the above
F) A) and B)

Question 18

Scenario 9-2
Suppose domestic demand and domestic supply in a market are given by the following equations: $$\begin{array} { l } 
Q ^ { D } = 20 - P \
Q ^ { S } = P
\end{array}$$ ​
-Refer to Scenario 9-2. With no trade allowed, what are the equilibrium price and quantity in this market?

Accepted Answer

The equilibrium pric...

Question 19

Figure 9-5 
-When a country that imports a particular good imposes a tariff on that good,

Accepted Answer

A)  consumer surplus increases and total surplus decreases in the market for that good.
B)  domestic sellers and domestic buyers become worse off.
C)  the domestic quantity demanded increases.
D)  domestic sellers become better off and domestic buyers become worse off.E) A) and B)
F) A) and C)

Question 20

Figure 9-3 
-Refer to Figure 9-3. Without trade, the equilibrium price of roses is

Accepted Answer

A)  $4 and the equilibrium quantity is 300 roses.
B)  $3 and the equilibrium quantity is 200 roses.
C)  $3 and the equilibrium quantity is 400 roses.
D)  $2 and the equilibrium quantity is 500 roses.E) A) and B)
F) B) and C)

Exam 9: Application: International Trade

Correct Answer
verified
With trade...
View Answer

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-7. Suppose the world price in this market is $7. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer
verified
With trade, consumer...
View Answer

Figure 9-5 -When a country that imports a particular good imposes a tariff on that good,

Correct Answer
verified

If the Korean steel industry subsidizes the steel that it sells to the United States, the

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. With trade, consumer surplus is

Correct Answer
verified

Figure 9-10 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 9-10. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct Answer
verified
Without trade, consu...
View Answer

Figure 9-2 -Refer to Figure 9-2. With trade, producer surplus is

Correct Answer
verified

Correct Answer
verified

When the nation of Duxembourg allows trade and becomes an importer of software,

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Without trade, total surplus amounts to

Correct Answer
verified

A tax on an imported good is called a

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. With trade, the price of skateboards in this country is

Correct Answer
verified

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

Correct Answer
verified

Figure 9-3 -Refer to Figure 9-3. Without trade, the equilibrium price of roses is

Correct Answer
verified

GATT is an example of a successful unilateral approach to achieving free trade.

Correct Answer
verified

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

Correct Answer
verified
Jumanji wi...
View Answer

Scenario 9-2 Suppose domestic demand and domestic supply in a market are given by the following equations: $\begin{array} { l } Q ^ { D } = 20 - P \\Q ^ { S } = P\end{array}$ -Refer to Scenario 9-2. With no trade allowed, what are the equilibrium price and quantity in this market?

Correct Answer
verified
The equilibrium pric...
View Answer

Figure 9-4 -Refer to Figure 9-4. Consumer surplus in this market after trade is

Correct Answer
verified

"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in

Correct Answer
verified

Exam 9: Application: International Trade

Correct AnswerverifiedWith trade...View AnswerShow Answer

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. ​ -Refer to Figure 9-7. Suppose the world price in this market is $7. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct AnswerverifiedWith trade, consumer...View AnswerShow Answer

Figure 9-5 -When a country that imports a particular good imposes a tariff on that good,

Correct AnswerverifiedShow Answer

If the Korean steel industry subsidizes the steel that it sells to the United States, the

Correct AnswerverifiedShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. With trade, consumer surplus is

Correct AnswerverifiedShow Answer

Figure 9-10 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 9-10. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct AnswerverifiedWithout trade, consu...View AnswerShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. With trade, producer surplus is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the nation of Duxembourg allows trade and becomes an importer of software,

Correct AnswerverifiedShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. Without trade, total surplus amounts to

Correct AnswerverifiedShow Answer

A tax on an imported good is called a

Correct AnswerverifiedShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. With trade, the price of skateboards in this country is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-3 -Refer to Figure 9-3. Without trade, the equilibrium price of roses is

Correct AnswerverifiedShow Answer

GATT is an example of a successful unilateral approach to achieving free trade.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedJumanji wi...View AnswerShow Answer

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

Figure 9-4 -Refer to Figure 9-4. Consumer surplus in this market after trade is

Correct AnswerverifiedShow Answer

"Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers." This statement is correct for a nation that exports manufactured goods, but it is not correct for a nation that imports manufactured goods.

Correct AnswerverifiedShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in

Correct AnswerverifiedShow Answer

Correct Answer
verified
With trade...
View Answer

Figure 9-7 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-7. Suppose the world price in this market is $7. If the country allows free trade, how much are consumer surplus, producer surplus, and total surplus with trade?

Correct Answer
verified
With trade, consumer...
View Answer

Correct Answer
verified

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. With trade, consumer surplus is

Correct Answer
verified

Figure 9-10 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 9-10. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus?

Correct Answer
verified
Without trade, consu...
View Answer

Figure 9-2 -Refer to Figure 9-2. With trade, producer surplus is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Without trade, total surplus amounts to

Correct Answer
verified

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. With trade, the price of skateboards in this country is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Jumanji wi...
View Answer

Correct Answer
verified
The equilibrium pric...
View Answer

Correct Answer
verified

Correct Answer
verified

Figure 9-1 Uganda -Refer to Figure 9-1. Relative to the no-trade situation, trade with the rest of the world results in

Correct Answer
verified