Question 1

Trade only occurs if there are only winners,and no losers,as a result of the trade.

Accepted Answer

A) True 
 B)False

Question 2

Figure 9-3   Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota.
-Refer to Figure 9-3.What is the area that represents the deadweight loss as a result of the quota?

Accepted Answer

A)  G + H 
B)  G + H + I + J 
C)  E + I + J + M 
D)  E + M 
A)  G + H 
B)  G + H + I + J 
C)  E + I + J + M 
D)  E + M

Question 3

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

Accepted Answer

A)  Internal economies 
B)  External economies 
C)  Autarkial dominance 
D)  Streamlining 
A)  Internal economies 
B)  External economies 
C)  Autarkial dominance 
D)  Streamlining

Question 4

If the opportunity cost of production for two goods is different between two countries,then

Accepted Answer

A)  trade cannot benefit either country. 
B)  only one country can be made better off by trade. 
C)  mutually beneficial trade is possible. 
D)  trade will only benefit both countries if one can lower its opportunity costs. 
A)  trade cannot benefit either country. 
B)  only one country can be made better off by trade. 
C)  mutually beneficial trade is possible. 
D)  trade will only benefit both countries if one can lower its opportunity costs.

Question 5

How have U.S.imports and exports,as a fraction of GDP,changed from 1970 to the present?

Accepted Answer

Since 1950,both exports and imports have

Question 6

Figure 9-2   Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff.
-Refer to Figure 9-2.The increase in domestic producer surplus as a result of the tariff is equal to the area

Accepted Answer

A)  C. 
B)  C + G. 
C)  A + C + G. 
D)  C + D + G + H + I. 
A)  C. 
B)  C + G. 
C)  A + C + G. 
D)  C + D + G + H + I.

Question 7

Table 9-4
Output Per Hour of Work
   Table 9-4 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand.
-Refer to Table 9-4.Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

Accepted Answer

The answer of Table 9-4
Output Per Hour of Work
 ...

Question 8

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Accepted Answer

A)  of 100 percent; 20 percent 
B)  above 50 percent; less than 1.5 percent 
C)  of less than 10 percent; over 40 percent 
D)  of 17 percent; 33 percent 
A)  of 100 percent; 20 percent 
B)  above 50 percent; less than 1.5 percent 
C)  of less than 10 percent; over 40 percent 
D)  of 17 percent; 33 percent

Question 9

Table 9-6
Production and
Consumption Production
Without Trade With Trade
   Denmark and Belize can produce both clocks and hats. Table 9-6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-6.Prior to trade,what was the opportunity cost to produce 1 clock in Denmark?

Accepted Answer

A)  1/6 of a hat 
B)  2/3 of a hat 
C)  1.5 hats 
D)  6 hats 
A)  1/6 of a hat 
B)  2/3 of a hat 
C)  1.5 hats 
D)  6 hats

Question 10

Disagreements about whether the U.S.government should regulate international trade

Accepted Answer

A)  began during the Great Depression. 
B)  began after World War I when government officials no longer believed in isolationism. 
C)  date back to the beginning of the country. 
D)  did not occur until the end of the Mexican War in 1848. 
A)  began during the Great Depression. 
B)  began after World War I when government officials no longer believed in isolationism. 
C)  date back to the beginning of the country. 
D)  did not occur until the end of the Mexican War in 1848.

Question 11

Figure 9-2   Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff.
-Refer to Figure 9-2.As a result of the tariff,domestic producers increase their quantity supplied by

Accepted Answer

A)  31 million pounds of rice. 
B)  22 million pounds of rice. 
C)  15 million pounds or rice. 
D)  6 million pounds of rice. 
A)  31 million pounds of rice. 
B)  22 million pounds of rice. 
C)  15 million pounds or rice. 
D)  6 million pounds of rice.

Question 12

Table 9-6
Production and
Consumption Production
Without Trade With Trade
   Denmark and Belize can produce both clocks and hats. Table 9-6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-6.Which country has a comparative advantage in producing hats?

Accepted Answer

A)  Denmark 
B)  Belize 
C)  both countries 
D)  neither country 
A)  Denmark 
B)  Belize 
C)  both countries 
D)  neither country

Question 13

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

Accepted Answer

A) True 
 B)False

Question 14

Figure 9-2   Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff.
-Refer to Figure 9-2.With the tariff in place,the United States

Accepted Answer

A)  imports 16 million pounds of rice. 
B)  imports 9 million pounds of rice. 
C)  imports 15 million pounds of rice. 
D)  exports 31 million pounds of rice. 
A)  imports 16 million pounds of rice. 
B)  imports 9 million pounds of rice. 
C)  imports 15 million pounds of rice. 
D)  exports 31 million pounds of rice.

Question 15

Which of the following is the best example of a quota?

Accepted Answer

A)  a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B)  a limit on the quantity of tires that can be imported from a foreign country 
C)  a 40% fee imposed on all imported tires 
D)  a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry. 
A)  a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B)  a limit on the quantity of tires that can be imported from a foreign country 
C)  a 40% fee imposed on all imported tires 
D)  a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry.

Question 16

Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product.

Accepted Answer

A country can have an absolute advantage

Question 17

What is a tariff?

Accepted Answer

A tariff is a tax im

Question 18

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

Accepted Answer

A)  both a U.S. and an Italian import. 
B)  a U.S. import and an Italian export. 
C)  a U.S. export and an Italian import. 
D)  neither an export nor an import for either country. 
A)  both a U.S. and an Italian import. 
B)  a U.S. import and an Italian export. 
C)  a U.S. export and an Italian import. 
D)  neither an export nor an import for either country.

Question 19

Which of the following statements is true?

Accepted Answer

A)  All individuals in both countries are made better off as a result of international trade. 
B)  Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. 
C)  Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. 
D)  Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. 
A)  All individuals in both countries are made better off as a result of international trade. 
B)  Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. 
C)  Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. 
D)  Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.

Question 20

Figure 9-1   Figure 9-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.The market price falls to $18.What is the value of domestic producer surplus?

Accepted Answer

A)  $0. 
B)  $40. 
C)  $320. 
D)  $360. 
A)  $0. 
B)  $40. 
C)  $320. 
D)  $360.

Trade only occurs if there are only winners,and no losers,as a result of the trade.

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3.What is the area that represents the deadweight loss as a result of the quota?

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

If the opportunity cost of production for two goods is different between two countries,then

How have U.S.imports and exports,as a fraction of GDP,changed from 1970 to the present?

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.The increase in domestic producer surplus as a result of the tariff is equal to the area

Table 9-4 Output Per Hour of Work Table 9-4 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand. -Refer to Table 9-4.Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

Disagreements about whether the U.S.government should regulate international trade

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.As a result of the tariff,domestic producers increase their quantity supplied by

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.With the tariff in place,the United States

Which of the following is the best example of a quota?

Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product.

What is a tariff?

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

Which of the following statements is true?

Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.The market price falls to $18.What is the value of domestic producer surplus?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters

Exam 9: Comparative Advantage and the Gains From International Trade

Trade only occurs if there are only winners,and no losers,as a result of the trade.

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3.What is the area that represents the deadweight loss as a result of the quota?

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

If the opportunity cost of production for two goods is different between two countries,then

How have U.S.imports and exports,as a fraction of GDP,changed from 1970 to the present?

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.The increase in domestic producer surplus as a result of the tariff is equal to the area

Table 9-4 Output Per Hour of Work Table 9-4 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand. -Refer to Table 9-4.Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Disagreements about whether the U.S.government should regulate international trade

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.As a result of the tariff,domestic producers increase their quantity supplied by

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.With the tariff in place,the United States

Which of the following is the best example of a quota?

Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product.

What is a tariff?

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

Which of the following statements is true?

Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.The market price falls to $18.What is the value of domestic producer surplus?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters

In the 1930s,the United States charged an average tariff rate .Today,the rate is .