Exam 9: Application: International Trade.

Suppose France subsidizes French wheat farmers,while Germany offers no subsidy to German wheat farmers.As a result of the French subsidy,sales of French wheat to Germany

When,in our analysis of the gains and losses from international trade,we assume that a particular country is small,we are

Congressman Smith cites the "jobs argument" when he argues in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries.The likely flaw in Congressman Smith's reasoning is that he ignores the fact that

Figure 9-2 -Refer to Figure 9-2.With free trade,this country will

Figure 9-6 -Refer to Figure 9-6.The size of the tariff on carnations is

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,then it will be an exporter of peaches if and only if the world price of peaches is

Suppose that Australia imposes a tariff on imported beef.If the increase in producer surplus is $100 million,the increase in tariff revenue is $200 million,and the reduction in consumer surplus is $500 million,the deadweight loss of the tariff is $300 million.

If a small country imposes a tariff on an imported good,domestic sellers will gain producer surplus,the government will gain tariff revenue,and domestic consumers will gain consumer surplus.

In September 2009,President Obama

Policymakers often consider trade restrictions in order to protect domestic producers from foreign competitors.

The price of sugar that prevails in international markets is called the

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

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

The "unfair-competition" argument might be cited by an American who believes that

The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production.These taxes

When a country allows international trade and becomes an importer of a good,domestic producers of the good are better off,and domestic consumers of the good are worse off.

Figure 9-2 -Refer to Figure 9-2.At the world price and with free trade,

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

Chile is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Chile imposes a $7 tariff on chips.Which of the following outcomes is possible?

Figure 9-13 -Refer to Figure 9-13.The price and domestic quantity demanded after trade are