Question 1

One should be especially wary of the national-security argument for restricting trade when that argument is made by

Accepted Answer

A)   representatives of industry.
B)   representatives of the defense establishment.
C)   members of households.
D)   foreign government officials.E) A) and B)
F) A) and C)

Question 2

The nation of Spritzland used to prohibit international trade,but now trade is allowed,and Spritzland is exporting wristwatches.Relative to the previous no-trade situation,total surplus in the market for wristwatches in Spritzland has increased.

Accepted Answer

A) True 
 B)False

Question 3

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Accepted Answer

A) True 
 B)False

Question 4

The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an

Accepted Answer

A)   importer of fish and the price of fish in Germany will be $6.00.
B)   importer of fish and the price of fish in Germany will be $8.00.
C)   exporter of fish and the price of fish in Germany will be $6.00.
D)   exporter of fish and the price of fish in Germany will be $8.00.E) A) and B)
F) B) and D)

Question 5

How does an import quota differ from an equivalent tariff?

Accepted Answer

Both the import quota and the tariff rai...

Question 6

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

Accepted Answer

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

Question 7

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

Question 8

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

Question 9

Figure 9-15
 
-Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

Accepted Answer

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

Question 10

Most economists view the United States as an ongoing experiment that raises serious doubts about the virtues of free trade.

Accepted Answer

A) True 
 B)False

Exam 9: Application: International Trade.

Most economists view the United States as an ongoing experiment that raises serious doubts about the virtues of free trade.

Correct Answer
verified

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Correct Answer
verified

The nation of Spritzland used to prohibit international trade,but now trade is allowed,and Spritzland is exporting wristwatches.Relative to the previous no-trade situation,total surplus in the market for wristwatches in Spritzland has increased.

Correct Answer
verified

How does an import quota differ from an equivalent tariff?

Correct Answer
verified
Both the import quota and the tariff rai...
View Answer

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

Correct Answer
verified

Workers displaced by trade eventually find jobs in

Correct Answer
verified

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

Correct Answer
verified

One should be especially wary of the national-security argument for restricting trade when that argument is made by

Correct Answer
verified

The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

Correct Answer
verified

Exam 9: Application: International Trade.

Most economists view the United States as an ongoing experiment that raises serious doubts about the virtues of free trade.

Correct AnswerverifiedShow Answer

When a country that imports shoes imposes a tariff on shoes,buyers of shoes in that country become worse off.

Correct AnswerverifiedShow Answer

The nation of Spritzland used to prohibit international trade,but now trade is allowed,and Spritzland is exporting wristwatches.Relative to the previous no-trade situation,total surplus in the market for wristwatches in Spritzland has increased.

Correct AnswerverifiedShow Answer

How does an import quota differ from an equivalent tariff?

Correct AnswerverifiedBoth the import quota and the tariff rai...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Workers displaced by trade eventually find jobs in

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

One should be especially wary of the national-security argument for restricting trade when that argument is made by

Correct AnswerverifiedShow Answer

The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.As a result of the tariff,there is a deadweight loss that amounts to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Both the import quota and the tariff rai...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified