Question 1

Figure 9-6 
-Refer to Figure 9-6.The amount of revenue collected by the government from the tariff is

Accepted Answer

A)   $200.
B)   $400.
C)   $500.
D)   $600.E) All of the above
F) B) and D)

Question 2

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

Accepted Answer

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

Question 3

A country has a comparative advantage in a product if the world price is

Accepted Answer

A)   lower than that country's domestic price without trade.
B)   higher than that country's domestic price without trade.
C)   equal to that country's domestic price without trade.
D)   not subject to manipulation by organizations that govern international trade.E) B) and C)
F) None of the above

Question 4

For any country,if the world price of zinc is higher than the domestic price of zinc without trade,that country should

Accepted Answer

A)   export zinc,since that country has a comparative advantage in zinc.
B)   import zinc,since that country has a comparative advantage in zinc.
C)   neither export nor import zinc,since that country cannot gain from trade.
D)   neither export nor import zinc,since that country already produces zinc at a low cost compared to other countries.E) A) and B)
F) C) and D)

Question 5

Figure 9-3.The domestic country is China. 
-Refer to Figure 9-3.The increase in total surplus in China when trade is allowed is

Accepted Answer

A)   $400.
B)   $500.
C)   $600.
D)   $750.E) B) and C)
F) C) 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) None of the above
F) All of the above

Question 7

Figure 9-4.The domestic country is Jamaica. 
-Refer to Figure 9-4.With trade,Jamaica

Accepted Answer

A)   imports 150 calculators.
B)   imports 250 calculators.
C)   exports 100 calculators.
D)   exports 250 calculators.E) B) and C)
F) C) and D)

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

Question 9

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Accepted Answer

A) True 
 B)False

Question 10

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Accepted Answer

A) True 
 B)False

Question 11

Figure 9-5 
-Refer to Figure 9-5.With trade,this country

Accepted Answer

A)   exports 20 wagons.
B)   exports 50 wagons.
C)   imports 30 wagons.
D)   imports 50 wagons.E) A) and B)
F) A) and C)

Question 12

Figure 9-12 
-Refer to Figure 9-12.With trade allowed,this country

Accepted Answer

A)   exports 200 units of the good.
B)   exports 400 units of the good.
C)   imports 200 units of the good.
D)   exports 800 units of the good.E) A) and B)
F) B) and D)

Question 13

In analyzing international trade,we often focus on a country whose economy is small relative to the rest of the world.We do so

Accepted Answer

A)   because it is impossible to analyze the gains and losses from international trade without making this assumption.
B)   because then we can assume that world prices of goods are unaffected by that country's participation in international trade.
C)   in order to rule out the possibility of tariffs or quotas.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 14

Figure 9-17 
-Refer to Figure 9-17.With free trade,total surplus is

Accepted Answer

A)   $150.
B)   $300.
C)   $450.
D)   $600.E) C) and D)
F) None of the above

Question 15

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. 0,P0) ,(Q2,P1) ,and (Q1,P1) represents A)  Australia's gains from trade. B)  the amount by which Australia's gain in consumer surplus exceeds its loss in producer surplus due to trade. C)  Australia's gain in total surplus due to trade. D)  All of the above are correct." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 9-10.The area bounded by the points (Q0,P0) ,(Q2,P1) ,and (Q1,P1) represents

Accepted Answer

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

Question 16

Figure 9-12 
-Refer to Figure 9-12.Equilibrium price and equilibrium quantity without trade are

Accepted Answer

A)   $18 and 400.
B)   $18 and 800.
C)   $14 and 400.
D)   $14 and 600.E) A) and B)
F) A) and C)

Question 17

Figure 9-2 
-Refer to Figure 9-2.With free trade,this country will

Accepted Answer

A)   import 40 baskets.
B)   import 70 baskets.
C)   export 35 baskets.
D)   export 65 baskets.E) A) and B)
F) B) and C)

Question 18

Figure 9-17 
-Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is

Accepted Answer

A)   $8.
B)   $72.
C)   $180.
D)   $252.E) B) and C)
F) A) and D)

Question 19

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.If Isoland allows international trade,then it will be an exporter of peaches if and only if the world price of peaches is

Accepted Answer

A)   above $2.
B)   below $4.
C)   above $4.
D)   below $7.E) B) and D)
F) None of the above

Question 20

If a country's domestic price of a good is lower than the world price,then that country has a comparative advantage in producing that good.

Accepted Answer

A) True 
 B)False

Exam 9: Application: International Trade

Figure 9-12 -Refer to Figure 9-12.Equilibrium price and equilibrium quantity without trade are

Correct AnswerverifiedShow Answer

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

Correct AnswerverifiedShow Answer

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.If Isoland allows international trade,then it will be an exporter of peaches if and only if the world price of peaches is

Correct AnswerverifiedShow Answer

The small-economy assumption is necessary to analyze the gains and losses from international trade.

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17.With free trade,total surplus is

Correct AnswerverifiedShow Answer

Figure 9-6 -Refer to Figure 9-6.The amount of revenue collected by the government from the tariff is

Correct AnswerverifiedShow Answer

If a country's domestic price of a good is lower than the world price,then that country has a comparative advantage in producing that good.

Correct AnswerverifiedShow Answer

Figure 9-2 -Refer to Figure 9-2.With free trade,this country will

Correct AnswerverifiedShow Answer

For any country,if the world price of zinc is higher than the domestic price of zinc without trade,that country should

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5.With trade,this country

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

In analyzing international trade,we often focus on a country whose economy is small relative to the rest of the world.We do so

Correct AnswerverifiedShow Answer

Figure 9-17 -Refer to Figure 9-17.The amount of revenue collected by the government from the tariff is

Correct AnswerverifiedShow Answer

A country has a comparative advantage in a product if the world price is

Correct AnswerverifiedShow Answer

Figure 9-10.The figure applies to the nation of Australia and the good is cameras. -Refer to Figure 9-10.The area bounded by the points (Q0,P0) ,(Q2,P1) ,and (Q1,P1) represents

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 9-3.The domestic country is China. -Refer to Figure 9-3.The increase in total surplus in China when trade is allowed is

Correct AnswerverifiedShow Answer

Patterns of trade among nations are primarily determined by

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12.With trade allowed,this country

Correct AnswerverifiedShow Answer

Figure 9-4.The domestic country is Jamaica. -Refer to Figure 9-4.With trade,Jamaica

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

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.The area bounded by the points (Q₀,P₀) ,(Q₂,P₁) ,and (Q₁,P₁) represents

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified