Filters
Question type
Study Flashcards

Figure 9-15 Figure 9-15 -Refer to Figure 9-15.For the saddle market,area E represents A) government's revenue from the tariff. B) producer surplus after the tariff becomes effective. C) the decrease in consumer surplus, relative to the free-trade situation, as a result of the tariff. D) the decrease in total surplus, relative to the free-trade situation, as a result of the tariff. -Refer to Figure 9-15.For the saddle market,area E represents


A) government's revenue from the tariff.
B) producer surplus after the tariff becomes effective.
C) the decrease in consumer surplus, relative to the free-trade situation, as a result of the tariff.
D) the decrease in total surplus, relative to the free-trade situation, as a result of the tariff.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Figure 9-9 Figure 9-9 -Refer to Figure 9-9.Total surplus in this market after trade is A) A + B. B) A + B + C. C) A + B + C + D. D) B + C + D. -Refer to Figure 9-9.Total surplus in this market after trade is


A) A + B.
B) A + B + C.
C) A + B + C + D.
D) B + C + D.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

The imposition of a tariff on imported wine will increase the domestic price of wine,decrease the quantity of wine imported,and increase the quantity of wine produced domestically.

A) True
B) False

Correct Answer

verifed

verified

Without free trade,the domestic price of a good must be equal to the world price of a good.

A) True
B) False

Correct Answer

verifed

verified

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


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

Correct Answer

verifed

verified

Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost because of foreign competition.

A) True
B) False

Correct Answer

verifed

verified

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. 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 and if the world price of peaches is $3,then A) Isoland has a comparative advantage, relative to other countries, in producing peaches. B) Isoland will export peaches. C) producer surplus with trade exceeds producer surplus without trade. D) consumer surplus with trade exceeds consumer surplus without trade. -Refer to Figure 9-18.If Isoland allows international trade and if the world price of peaches is $3,then


A) Isoland has a comparative advantage, relative to other countries, in producing peaches.
B) Isoland will export peaches.
C) producer surplus with trade exceeds producer surplus without trade.
D) consumer surplus with trade exceeds consumer surplus without trade.

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

Correct Answer

verifed

verified

Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. where Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. represents the domestic quantity of cardboard demanded, in tons, and Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. where Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. represents the domestic quantity of cardboard supplied, in tons, and Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard, A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off. B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off. C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off. D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off. again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,


A) domestic producers of cardboard become better off and domestic consumers of cardboard become better off.
B) domestic producers of cardboard become better off and domestic consumers of cardboard become worse off.
C) domestic producers of cardboard become worse off and domestic consumers of cardboard become better off.
D) domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off.

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy,the result was that the country began to import automobiles.The change in policy improved the well-being of that nation in the sense that


A) both producers of automobiles and consumers of automobiles in that nation became better off as a result.
B) the gains to automobile producers in that nation exceeded the losses of the automobile consumers in that nation.
C) the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation.
D) even though total surplus in that nation decreased, it was still true that consumer surplus and producer surplus increased.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Figure 9-5 Figure 9-5 -Refer to Figure 9-5.With trade,this country A) exports 20 wagons. B) exports 50 wagons. C) imports 30 wagons. D) imports 50 wagons. -Refer to Figure 9-5.With trade,this country


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

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

A) True
B) False

Correct Answer

verifed

verified

In September 2009,President Obama imposed a 35 percent tariff on


A) tires imported from South Korea.
B) tires imported from China.
C) automobiles imported from South Korea.
D) beef imported from Canada.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,


A) this is an indication that the world price of soybeans exceeds the nation's domestic price of soybeans in the absence of trade.
B) this is an indication that the nation has a comparative advantage in producing soybeans.
C) the nation's consumers of soybeans become worse off and the nation's producers of soybeans become better off.
D) All of the above are correct.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of pistachios decreases to equal the world price of pistachios,then


A) that country becomes an exporter of pistachios.
B) that country has a comparative advantage in producing pistachios.
C) at the world price, the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country.
D) All of the above are correct.

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

Correct Answer

verifed

verified

Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. where Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. represents the domestic quantity of cardboard demanded, in tons, and Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. where Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. represents the domestic quantity of cardboard supplied, in tons, and Scenario 9-2 For a small country called Boxland, the equation of the domestic demand curve for cardboard is where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland? A) It decreases consumer surplus, increases producer surplus, and decreases total surplus. B) It decreases consumer surplus, increases producer surplus, and increases total surplus. C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus. D) It increases consumer surplus, increases producer surplus, and increases total surplus. again represents the price of a ton of cardboard. -Refer to Scenario 9-2.Suppose the world price of cardboard is $60.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland?


A) It decreases consumer surplus, increases producer surplus, and decreases total surplus.
B) It decreases consumer surplus, increases producer surplus, and increases total surplus.
C) It decreases consumer surplus, decreases producer surplus, and decreases total surplus.
D) It increases consumer surplus, increases producer surplus, and increases total surplus.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Figure 9-1 The figure illustrates the market for wool in Scotland. Figure 9-1 The figure illustrates the market for wool in Scotland. -Refer to Figure 9-1.Relative to the no-trade situation,trade with the rest of the world results in A) Scotland consumers paying a higher price for wool. B) a decrease in producer surplus in Scotland. C) a decrease in total surplus in Scotland. D) All of the above are correct. -Refer to Figure 9-1.Relative to the no-trade situation,trade with the rest of the world results in


A) Scotland consumers paying a higher price for wool.
B) a decrease in producer surplus in Scotland.
C) a decrease in total surplus in Scotland.
D) All of the above are correct.

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

When a country allows trade and becomes an importer of a good,


A) domestic producers become better off, and domestic consumers become worse off.
B) domestic producers become worse off, and domestic consumers become better off.
C) domestic consumers become better off, but the effect on the well-being of domestic producers is ambiguous.
D) domestic producers become worse off, but the effect on the well-being of domestic consumers is ambiguous.

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

The nation of Loneland does not allow international trade.In Loneland,you can buy 1 pound of beef for 2 pounds of cheese.In neighboring countries,you can buy 2 pounds of beef for 3 pounds of cheese.If Loneland were to allow free trade,it would export cheese.

A) True
B) False

Correct Answer

verifed

verified

When a country moves away from a free trade position and imposes a tariff on imports,it causes


A) a decrease in total surplus in the market.
B) a decrease in producer surplus in the market.
C) an increase in consumer surplus in the market.
D) a decrease in revenue to the government.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

What are the arguments in favor of trade restrictions,and what are the counterarguments? According to most economists,do any of these arguments really justify trade restrictions? Explain.

Correct Answer

verifed

verified

Arguments mentioned in the text include ...

View Answer

Showing 281 - 300 of 410

Related Exams

Exam 1

Ten Principles of Economics.

349 Questions

Exam 2

Thinking Like an Economist.

535 Questions

Exam 3

Interdependence and the Gains from Trade.

443 Questions

Exam 4

The Market Forces of Supply and Demand.

571 Questions

Exam 5

Elasticity and Its Application

510 Questions

Exam 6

Supply, Demand, And Government Policies.

557 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets.

460 Questions

Exam 8

Application: The Costs of Taxation.

424 Questions

Exam 10

Externalities.

441 Questions

Exam 11

Public Goods and Common Resources.

349 Questions

Exam 12

The Design of the Tax System.

478 Questions

Exam 13

The Costs of Production.

533 Questions

Exam 14

Firms in Competitive Markets.

478 Questions

Exam 15

Monopoly.

526 Questions

Exam 16

Monopolistic Competition.

497 Questions

Exam 17

Oligopoly.

410 Questions

Exam 18

The Market For the Factors of Production.

463 Questions

Exam 19

Earnings and Discrimination.

398 Questions

Exam 20

Income Inequality and Poverty.

374 Questions

Exam 21

The Theory of Consumer Choice.

462 Questions

Exam 22

Frontiers in Microeconomics.

353 Questions

Show Answer