Deck 9: Essay

Question 1

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Answer 1

With trade,consumer surplus falls by $40,producer surplus rises by $60,and total surplus increases by $20.

Question 2

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus?

Answer 2

Without trade,consumer surplus is $4,000,producer surplus is $4,000,and total surplus is $8,000.

Question 3

Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Answer 3

Brazil will be an exporter of coffee.

Question 4

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how many units will domestic consumers demand,and how many units will domestic producers produce?

Question 5

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Question 6

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Question 7

Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee.If Jumanji allows free trade,will Jumanji be an importer or an exporter of coffee?

Question 8

Figure 9-26
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-26.Suppose the world price in this market is $7.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Question 9

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.If the country allows free trade,how many units will domestic consumers demand and how many units will domestic producers produce?

Question 10

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,what are the equilibrium price and equilibrium quantity in this market?

Question 11

Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed.If the world price of oranges is $10 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of oranges?

Question 12

A tax on an imported good is called a ------ .

Question 13

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Question 14

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?

Question 15

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed.If the world price of corn is $3 per bushel and if Nash allows free trade,will Nash be an importer or an exporter of corn?

Question 16

A country has a comparative advantage in a product if the world price is ----- than that country's domestic price without trade.

Question 17

Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound.If Brazil allows free trade,will Brazil be an importer or an exporter of coffee?

Question 18

Suppose in the country of Jumanji that the price of wheat with no trade allowed is above the world price of wheat.If Jumanji allows free trade,will Jumanji be an importer or an exporter of wheat?

Question 19

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Question 20

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.If the country allows free trade,by how much do consumer surplus,producer surplus,and total surplus change with trade?

Question 21

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.Suppose the world price in this market is $6.If the country allows free trade,how much is consumer surplus?

Question 22

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.Suppose the world price in this market is $6.If the country allows free trade,how many units will domestic consumers demand,and how many units will domestic producers supply?

Question 23

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.Suppose the world price in this market is $8 per unit.If the country allows free trade,how much are consumer surplus,producer surplus,and producer surplus with trade?

Question 24

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.Suppose the world price in this market is $6.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Question 25

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.Suppose the world price in this market is $8 per unit.If the country allows free trade,by how much do consumer surplus,producer surplus,and producer surplus change?

Question 26

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus in this market?

Question 27

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus?

Question 28

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.Suppose the world price in this market is $6.If the country allows free trade,how much is total surplus?

Question 29

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.If the country allows free trade,how many units will domestic consumers demand and how many units will domestic producers supply?

Question 30

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Question 31

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.Suppose the country imposes a $5 per unit tariff.If the country allows trade with a tariff,how much are consumer surplus,producer surplus,tariff revenue,and total surplus?

Question 32

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.With no trade allowed,how much are consumer surplus,producer surplus,and total surplus in this market?

Question 33

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.With no trade allowed,what are the equilibrium price and quantity in this market?

Question 34

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.Suppose the world price in this market is $8 per unit,and suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much are consumer surplus,producer surplus,tariff revenue,and total surplus?

Question 35

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.Suppose the world price in this market is $8 per unit.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Question 36

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.With no trade allowed,what are the equilibrium price and equilibrium quantity in this market?

Question 37

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.If the country allows free trade,will the country import or export this good,and how many units will be imported/exported?

Question 38

Figure 9-28
The following diagram shows the domestic demand and domestic supply curves in a market.
Refer to Figure 9-28.Suppose the world price in this market is $6.If the country allows free trade,how much is producer surplus?

Question 39

Scenario 9-3
Suppose domestic demand and domestic supply in a market are given by the following equations:
Refer to Scenario 9-3.Suppose the world price in this market is $8 per unit,and suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much is the deadweight loss caused by the tariff?

Question 40

Figure 9-27
The following diagram shows the domestic demand and supply curves in a market.Assume that the world price in this market is $20 per unit.
Refer to Figure 9-27.Suppose the country imposes a $5 per unit tariff.If the country allows trade with a tariff,how much is the deadweight loss caused by the tariff?

Question 41

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much is the deadweight loss caused by the tariff?

Question 42

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how many units will be imported?

Question 43

List five arguments given to support trade restrictions.

Question 44

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,what will be the domestic price in this market?

Question 45

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much is tariff revenue?

Question 46

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much is total surplus?

Question 47

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how many units will domestic consumers demand and how many units will domestic producers supply?

Question 48

How does an import quota differ from an equivalent tariff?

Question 49

Characterize the two different approaches a nation can take to achieve free trade.Does one approach have an advantage over the other?

Question 50

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.

Question 51

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.If the country allows free trade,how much are consumer surplus,producer surplus,and total surplus with trade?

Question 52

Figure 9-29
The following diagram shows the domestic demand and domestic supply curves in a market.Assume that the world price in this market is $1 per unit.
Refer to Figure 9-29.Suppose the country imposes a $1 per unit tariff.If the country allows trade with a tariff,how much are consumer surplus and producer surplus?

Question 53

List four benefits of international trade.