Question 1

Figure 9-12 
-Refer to Figure 9-12. Consumer surplus before trade is

Accepted Answer

A)  $3,600.
B)  $4,200.
C)  $5,400.
D)  $6,000.E) B) and C)
F) None of the above

Question 2

Use the graph to answer the following questions about CDs.  a. What is the equilibrium price of CDs before trade?
b. What is the equilibrium quantity of CDs before trade?
c. What is the price of CDs after trade is allowed?
d. What is the quantity of CDs exported after trade is allowed?
e. What is the amount of consumer surplus before trade?
f. What is the amount of consumer surplus after trade?
g. What is the amount of producer surplus before trade?
h. What is the amount of producer surplus after trade?
i. What is the amount of total surplus before trade?
j. What is the amount of total surplus after trade?
k. What is the change in total surplus because of trade?

Accepted Answer

a.$12
b.50
c.$15
d.3...

Question 3

Which of the following is not a commonly-advanced argument for trade restrictions?

Accepted Answer

A)  the jobs argument
B)  the national-security argument
C)  the infant-industry argument
D)  the efficiency argumentE) B) and D)
F) B) and C)

Question 4

Figure 9-1
The figure illustrates the market for wool in Scotland. 
-Refer to Figure 9-1. In the absence of trade, total surplus in Scotland is represented by the area

Accepted Answer

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

Question 5

When a country allows trade and becomes an exporter of a good, which of the following is not a consequence?

Accepted Answer

A)  The price paid by domestic consumers of the good increases.
B)  The price received by domestic producers of the good increases.
C)  The losses of domestic consumers of the good exceed the gains of domestic producers of the good.
D)  The gains of domestic producers of the good exceed the losses of domestic consumers of the good.E) A) and B)
F) None of the above

Question 6

When the nation of Brownland first permitted trade with other nations, domestic producers of wheat experienced an increase in producer surplus of $4 million and total surplus in Brownland's wheat market increased by $1 million. We can conclude that

Accepted Answer

A)  Brownland became an exporter of wheat.
B)  consumer surplus in Brownland increased by $3 million.
C)  the opening of trade caused the domestic supply curve for wheat in Brownland to shift to the left.
D)  this example is inconsistent with the economic theory of international trade.E) All of the above
F) A) and B)

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 9-2 
-Refer to Figure 9-2. If this country chooses to trade, the price of baskets in this country will be

Accepted Answer

A)  $10 and 40 baskets will be sold domestically.
B)  $10 and 105 baskets will be sold domestically.
C)  $7 and 70 baskets will be sold domestically.
D)  $7 and 40 baskets will be sold domestically.E) B) and C)
F) All of the above

Question 9

Figure 9-5 
-Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements?

Accepted Answer

A)  The quantity of wagons that this country imports would increase.
B)  The quantity of wagons that this country imports would decrease, but the country would still be an importer of wagons.
C)  This country would switch from being an importer of wagons to an exporter of wagons.
D)  The domestic price without trade would move closer to the world price.E) None of the above
F) All of the above

Exam 9: Application: International Trade

Which of the following is not a commonly-advanced argument for trade restrictions?

Correct Answer
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Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1. In the absence of trade, total surplus in Scotland is represented by the area

Correct Answer
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When a country allows trade and becomes an exporter of a good, which of the following is not a consequence?

Correct Answer
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Figure 9-12 -Refer to Figure 9-12. Consumer surplus before trade is

Correct Answer
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When the nation of Brownland first permitted trade with other nations, domestic producers of wheat experienced an increase in producer surplus of $4 million and total surplus in Brownland's wheat market increased by $1 million. We can conclude that

Correct Answer
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Correct Answer
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a.$12
b.50
c.$15
d.3...
View Answer

Figure 9-5 -Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements?

Correct Answer
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Figure 9-2 -Refer to Figure 9-2. If this country chooses to trade, the price of baskets in this country will be

Correct Answer
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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

Exam 9: Application: International Trade

Which of the following is not a commonly-advanced argument for trade restrictions?

Correct AnswerverifiedShow Answer

Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1. In the absence of trade, total surplus in Scotland is represented by the area

Correct AnswerverifiedShow Answer

When a country allows trade and becomes an exporter of a good, which of the following is not a consequence?

Correct AnswerverifiedShow Answer

Figure 9-12 -Refer to Figure 9-12. Consumer surplus before trade is

Correct AnswerverifiedShow Answer

When the nation of Brownland first permitted trade with other nations, domestic producers of wheat experienced an increase in producer surplus of $4 million and total surplus in Brownland's wheat market increased by $1 million. We can conclude that

Correct AnswerverifiedShow Answer

Correct Answerverifieda.$12b.50c.$15d.3...View AnswerShow Answer

Figure 9-5 -Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements?

Correct AnswerverifiedShow Answer

Figure 9-2 -Refer to Figure 9-2. If this country chooses to trade, the price of baskets in this country will be

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

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.$12
b.50
c.$15
d.3...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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