Question 1

​If we know that Canada exports maple syrup, we can conclude that maple syrup consumers in Canada are worse off than they would be in the absence of trade.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Workers displaced by trade eventually find jobs in

Accepted Answer

A)  another country.
B)  the government sector.
C)  the industries in which the country has a comparative advantage.
D)  a different company in the same industry.E) C) and D)
F) A) and B)

Question 4

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market. 
-Refer to Figure 9-28. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Accepted Answer

The equilibrium pric...

Question 5

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 6

​We can conclude that international trade is beneficial because, regardless of whether the country imports or exports a good, the overall increase in well-being outweighs the losses associated with trade.

Accepted Answer

A) True 
 B)False

Question 7

If a country allows free trade and imports cars, then it is the case that the gains to domestic producers outweigh the losses to domestic consumers.

Accepted Answer

A) True 
 B)False

Question 8

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Accepted Answer

A)  exporting steel and the price per ton in Russia decreased to $650.
B)  exporting steel and the price per ton in Russia remained at $1,000.
C)  importing steel and the price per ton in Russia decreased to $650.
D)  importing steel and the price per ton in Russia remained at $1,000.E) A) and B)
F) A) and C)

Question 9

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

Question 10

When a country takes a unilateral approach to free trade, it

Accepted Answer

A)  removes trade restrictions on its own.
B)  reduces its trade restrictions while other countries do the same.
C)  does not remove trade restrictions no matter what other countries do.
D)  is willing to trade with multiple countries at once.E) None of the above
F) A) and B)

Question 11

Some goods can be produced at low cost only if they are produced in large quantities. This phenomenon is called

Accepted Answer

A)  marginal cost of production.
B)  marginal benefit of size.
C)  economies of scale.
D)  economies of production.E) A) and D)
F) B) and C)

Question 12

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S. 
-​Refer to figure 9-26. The figure shows that

Accepted Answer

A)  ​the U.S. will import baseballs when the market opens to international trade.
B)  ​the U.S. will export baseballs when the market opens to international trade.
C)  ​the U.S. will be a net loser when the market for baseballs opens to international trade.
D)  ​if the U.S. opens its baseball market to international trade, the price will plummet.E) C) and D)
F) A) and B)

Question 13

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

Accepted Answer

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

Question 14

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. 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 15

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 16

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

Accepted Answer

A)  How does international trade affect consumer well-being?
B)  Who gains and who loses from free trade among countries?
C)  How do the gains from trade compare to the losses?
D)  Which argument for restricting free trade is politically feasible?E) A) and D)
F) B) and C)

Question 17

Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether

Accepted Answer

A)  consumer surplus exceeds producer surplus in Teeveeland.
B)  Teeveeland has an absolute advantage in producing televisions.
C)  Teeveeland has a comparative advantage in producing televisions.
D)  All of the above are correct.E) A) and C)
F) B) and C)

Question 18

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

Accepted Answer

A)  foreign competitors that can produce quality textile goods at low cost.
B)  lower prices of goods that are substitutes for clothing.
C)  a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good.
D)  the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.E) C) and D)
F) None of the above

Question 19

Refer to Figure 9-15. The amount of government revenue created by the tariff is

Accepted Answer

A)  B.
B)  E.
C)  D + F.
D)  B + D + E + F.E) C) and D)
F) None of the above

Question 20

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 B)
F) A) and C)

Exam 9: Application: International Trade

If we know that Canada exports maple syrup, we can conclude that maple syrup consumers in Canada are worse off than they would be in the absence of trade.

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

Workers displaced by trade eventually find jobs in

Correct Answer
verified

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

Correct Answer
verified

Patterns of trade among nations are primarily determined by

Correct Answer
verified

Some goods can be produced at low cost only if they are produced in large quantities. This phenomenon is called

Correct Answer
verified

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

Correct Answer
verified

Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether

Correct Answer
verified

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

Correct Answer
verified

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Correct Answer
verified

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

Correct Answer
verified

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

Correct Answer
verified

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

If a country allows free trade and imports cars, then it is the case that the gains to domestic producers outweigh the losses to domestic consumers.

Correct Answer
verified

Correct Answer
verified
With trade...
View Answer

We can conclude that international trade is beneficial because, regardless of whether the country imports or exports a good, the overall increase in well-being outweighs the losses associated with trade.

Correct Answer
verified

Refer to Figure 9-15. The amount of government revenue created by the tariff is

Correct Answer
verified

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct Answer
verified
The equilibrium pric...
View Answer

When a country takes a unilateral approach to free trade, it

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. The figure shows that

Correct Answer
verified

Exam 9: Application: International Trade

​If we know that Canada exports maple syrup, we can conclude that maple syrup consumers in Canada are worse off than they would be in the absence of trade.

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

Workers displaced by trade eventually find jobs in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Patterns of trade among nations are primarily determined by

Correct AnswerverifiedShow Answer

Some goods can be produced at low cost only if they are produced in large quantities. This phenomenon is called

Correct AnswerverifiedShow Answer

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

Correct AnswerverifiedShow Answer

Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether

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

The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began

Correct AnswerverifiedShow Answer

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

Correct AnswerverifiedShow Answer

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

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

If a country allows free trade and imports cars, then it is the case that the gains to domestic producers outweigh the losses to domestic consumers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWith trade...View AnswerShow Answer

​We can conclude that international trade is beneficial because, regardless of whether the country imports or exports a good, the overall increase in well-being outweighs the losses associated with trade.

Correct AnswerverifiedShow Answer

Refer to Figure 9-15. The amount of government revenue created by the tariff is

Correct AnswerverifiedShow Answer

Figure 9-28 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-28. With no trade allowed, what are the equilibrium price and equilibrium quantity in this market?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

When a country takes a unilateral approach to free trade, it

Correct AnswerverifiedShow Answer

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -​Refer to figure 9-26. The figure shows that

Correct AnswerverifiedShow Answer

If we know that Canada exports maple syrup, we can conclude that maple syrup consumers in Canada are worse off than they would be in the absence of trade.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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With trade...
View Answer

We can conclude that international trade is beneficial because, regardless of whether the country imports or exports a good, the overall increase in well-being outweighs the losses associated with trade.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The equilibrium pric...
View Answer

Correct Answer
verified

Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. The figure shows that

Correct Answer
verified