Exam 9: Application: International Trade

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

Figure 9-17 -Refer to Figure 9-17. When the country moves from no trade to free trade, consumer surplus

Figure 9-4. The domestic country is Nicaragua. -Refer to Figure 9-4. The change in total surplus in Nicaragua because of trade is

Trade raises the economic well-being of a nation in the sense that

When the nation of Isoland opens up its steel market to international trade, that change

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

Figure 9-26 The following diagram shows the domestic demand and domestic supply curves in a market. -Refer to Figure 9-26. With no trade allowed, how much are consumer surplus, producer surplus, and total surplus in this market?

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. Consumer surplus in the U.S. prior to the opening of the baseball market to international trade is the area

Figure 9-17 -Refer to Figure 9-17. With trade and a tariff, total surplus is

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

Figure 9-6 The figure illustrates the market for roses in a country. -Refer to Figure 9-6. The size of the tariff on roses is

When a country that imports a particular good imposes a tariff on that good,

Spain is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Spain imposes a $5 tariff on chips. As a result,

Figure 9-2 The figure illustrates the market for calculators in a country. -Refer to Figure 9-2. At the world price and with free trade,

Figure 9-14. On the diagram below, Q represents the quantity of crude oil and P represents the price of crude oil. -Refer to Figure 9-14. The country for which the figure is drawn

Figure 9-3. The domestic country is China. -Refer to Figure 9-3. With no international trade,

Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television there was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began

Figure 9-20 The figure illustrates the market for rice in Vietnam. -Refer to Figure 9-20. Vietnam's gains from trade in rice amount to

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

​Figure 9-26 The diagram below illustrates the market for baseballs in the U.S. -Refer to figure 9-26. After the opening of the U.S. baseball market to international trade, it's possible to conclude that