Question 1

Figure 9-5 
-Refer to Figure 9-5. Producer surplus in this market after trade is

Accepted Answer

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

Question 2

Figure 9-1
​
 Uganda

-Refer to Figure 9-1. In the absence of trade, total surplus in the Ugandan coffee market amounts to

Accepted Answer

A)  $450.00.
B)  $375.00.
C)  $880.00.
D)  $825.00.E) C) and D)
F) B) and D)

Question 3

Figure 9-2  ​
-Refer to Figure 9-2. If this country allows free trade in skateboards,

Accepted Answer

A)  consumers will gain and producers will lose.
B)  consumers will lose and producers will gain.
C)  both consumers and producers will gain.
D)  both consumers and producers will lose.E) A) and C)
F) B) and C)

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

Suppose New Zealand has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over New Zealand in producing almonds. If trade in almonds is allowed, New Zealand

Accepted Answer

A)  will export almonds.
B)  will import almonds.
C)  will either import almonds or export almonds, but it is not clear from the given information.
D)  would have nothing to gain either from exporting or importing almonds.E) C) and D)
F) B) and C)

Question 6

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

Accepted Answer

A unilateral approach is when a country ...

Question 7

​Since a tariff can increase employment in an industry, the result is a net increase in total surplus.

Accepted Answer

A) True 
 B)False

Question 8

For a given country, comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Accepted Answer

A) True 
 B)False

Question 9

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?

Accepted Answer

Brazil wil...

Question 10

Figure 9-9
The following diagram shows the domestic demand and domestic supply curves in a market.  ​
-Refer to Figure 9-9. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Accepted Answer

The equilibrium pric...

Question 11

Figure 9-2  ​
-Refer to Figure 9-2. Total surplus with trade exceeds total surplus without trade by

Accepted Answer

A)  $1,920.
B)  $3,840.
C)  $23,280.
D)  $7,680.E) A) and B)
F) B) and C)

Question 12

Representative Vazquez cites the "jobs argument" when he argues before Congress in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries. The likely flaw in Representative Vazquez's reasoning is that he ignores the fact that

Accepted Answer

A)  there is no evidence that any worker ever lost their job because of free trade.
B)  unemployment of labor is not a serious problem relative to other economic problems.
C)  the gains from trade are based on comparative advantage.
D)  the gains from trade are based on absolute advantage.E) All of the above
F) A) and D)

Question 13

List five arguments given to support trade restrictions.

Accepted Answer

The jobs argument; the nationa...

Question 14

Figure 9-6 
-Refer to Figure 9-6. The tariff

Accepted Answer

A)  decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
B)  decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F.
C)  increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
D)  increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F.E) B) and C)
F) A) and D)

Question 15

Figure 9-9
The following diagram shows the domestic demand and domestic supply curves in a market.  ​
-Refer to Figure 9-9. Suppose the world price in this market is $6. If the country allows free trade, how much is total surplus?

Accepted Answer

With trade...

Question 16

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

Accepted Answer

A) True 
 B)False

Question 17

Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage.

Accepted Answer

A) True 
 B)False

Question 18

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?

Accepted Answer

Jumanji wi...

Question 19

Figure 9-5 
-Refer to Figure 9-5. 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 B)
F) A) and C)

Question 20

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 Boxland's gains from international trade in cardboard amount to

Accepted Answer

A)  $632.81.
B)  $2,531.25.
C)  $1,265.63.
D)  $7,425.00.E) A) and B)
F) None of the above

Exam 9: Application: International Trade

For a given country, comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Correct Answer
verified

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-9. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct Answer
verified
The equilibrium pric...
View Answer

Figure 9-6 -Refer to Figure 9-6. The tariff

Correct Answer
verified

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-9. Suppose the world price in this market is $6. If the country allows free trade, how much is total surplus?

Correct Answer
verified
With trade...
View Answer

Representative Vazquez cites the "jobs argument" when he argues before Congress in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries. The likely flaw in Representative Vazquez's reasoning is that he ignores the fact that

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Total surplus with trade exceeds total surplus without trade by

Correct Answer
verified

Figure 9-5 -Refer to Figure 9-5. Producer surplus plus consumer surplus in this market after trade is

Correct Answer
verified

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

Correct Answer
verified

Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage.

Correct Answer
verified

Suppose New Zealand has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over New Zealand in producing almonds. If trade in almonds is allowed, New Zealand

Correct Answer
verified

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?

Correct Answer
verified
Brazil wil...
View Answer

List five arguments given to support trade restrictions.

Correct Answer
verified
The jobs argument; the nationa...
View Answer

Figure 9-2 -Refer to Figure 9-2. If this country allows free trade in skateboards,

Correct Answer
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
verified
A unilateral approach is when a country ...
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.

Correct Answer
verified

Since a tariff can increase employment in an industry, the result is a net increase in total surplus.

Correct Answer
verified

Figure 9-5 -Refer to Figure 9-5. Producer surplus in this market after trade is

Correct Answer
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
verified
Jumanji wi...
View Answer

Figure 9-1 Uganda -Refer to Figure 9-1. In the absence of trade, total surplus in the Ugandan coffee market amounts to

Correct Answer
verified

Correct Answer
verified

Exam 9: Application: International Trade

For a given country, comparing the world price of aluminum and the domestic price of aluminum before trade indicates whether that country's demand for aluminum exceeds the demand for aluminum in other countries.

Correct AnswerverifiedShow Answer

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. ​ -Refer to Figure 9-9. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

Figure 9-6 -Refer to Figure 9-6. The tariff

Correct AnswerverifiedShow Answer

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. ​ -Refer to Figure 9-9. Suppose the world price in this market is $6. If the country allows free trade, how much is total surplus?

Correct AnswerverifiedWith trade...View AnswerShow Answer

Representative Vazquez cites the "jobs argument" when he argues before Congress in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries. The likely flaw in Representative Vazquez's reasoning is that he ignores the fact that

Correct AnswerverifiedShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. Total surplus with trade exceeds total surplus without trade by

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5. Producer surplus plus consumer surplus in this market after trade is

Correct AnswerverifiedShow Answer

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

Correct AnswerverifiedShow Answer

Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage.

Correct AnswerverifiedShow Answer

Suppose New Zealand has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over New Zealand in producing almonds. If trade in almonds is allowed, New Zealand

Correct AnswerverifiedShow Answer

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?

Correct AnswerverifiedBrazil wil...View AnswerShow Answer

List five arguments given to support trade restrictions.

Correct AnswerverifiedThe jobs argument; the nationa...View AnswerShow Answer

Figure 9-2 ​ -Refer to Figure 9-2. If this country allows free trade in skateboards,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA unilateral approach is when a country ...View AnswerShow 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.

Correct AnswerverifiedShow Answer

​Since a tariff can increase employment in an industry, the result is a net increase in total surplus.

Correct AnswerverifiedShow Answer

Figure 9-5 -Refer to Figure 9-5. Producer surplus in this market after trade is

Correct AnswerverifiedShow Answer

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 AnswerverifiedJumanji wi...View AnswerShow Answer

Figure 9-1 ​ Uganda -Refer to Figure 9-1. In the absence of trade, total surplus in the Ugandan coffee market amounts to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-9. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct Answer
verified
The equilibrium pric...
View Answer

Correct Answer
verified

Figure 9-9 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-9. Suppose the world price in this market is $6. If the country allows free trade, how much is total surplus?

Correct Answer
verified
With trade...
View Answer

Correct Answer
verified

Figure 9-2 -Refer to Figure 9-2. Total surplus with trade exceeds total surplus without trade by

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Brazil wil...
View Answer

Correct Answer
verified
The jobs argument; the nationa...
View Answer

Figure 9-2 -Refer to Figure 9-2. If this country allows free trade in skateboards,

Correct Answer
verified

Correct Answer
verified
A unilateral approach is when a country ...
View Answer

Correct Answer
verified

Since a tariff can increase employment in an industry, the result is a net increase in total surplus.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Jumanji wi...
View Answer

Figure 9-1 Uganda -Refer to Figure 9-1. In the absence of trade, total surplus in the Ugandan coffee market amounts to

Correct Answer
verified

Correct Answer
verified