Question 1

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 consumer surplus?

Accepted Answer

A) $0 
B) $270 
C) $305 
D) $320

Question 2

Free trade refers to trade between countries without government restrictions.

Accepted Answer

A) True 
 B)False

Question 3

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.What will be the quantity demanded?

Accepted Answer

A) 5 units 
B) 10 units 
C) 15 units 
D) 20 units

Question 4

Table 9-3
  
Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month.
-Refer to Table 9-3.Select the statement that accurately interprets the data in the table.

Accepted Answer

A) Bryce has a greater opportunity cost than Tina for making candles. 
B) Bryce's opportunity cost for making candles is less than Tina's. 
C) Tina has a greater opportunity cost than Bryce for making candles. 
D) Bryce's opportunity cost for making candles and making soap are both greater than Tina's.

Question 5

Which of the following is the best example of a voluntary export restraint?

Accepted Answer

A) a limit imposed by the U.S. government on the number of cell phones that the United States can import from Korea 
B) a subsidy granted by the U.S. government to domestic cell phone manufacturers so they can compete more effectively with foreign cell phone manufacturers 
C) a limit set by the Korean government on the number of cell phones that the United States can import from Korea 
D) a $50 per-cell phone fee imposed on all cell phones imported into the United States

Question 6

In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints, foreign producers

Accepted Answer

A) agree to meet specific quality standards required by the importing country. 
B) limit their exports to a country. 
C) pay a tax on all products they export. 
D) must agree to import an equal quantity of products that they export.

Question 7

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

The answer of Explain whether it is possible for a...

Question 8

A tariff is a tax imposed by a government on its own exports.

Accepted Answer

A) True 
 B)False

Exam 9: Comparative Advantage and the Gains From International Trade

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 consumer surplus?

Free trade refers to trade between countries without government restrictions.

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.What will be the quantity demanded?

Table 9-3 Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 9-3.Select the statement that accurately interprets the data in the table.

Which of the following is the best example of a voluntary export restraint?

In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints, foreign producers

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.

A tariff is a tax imposed by a government on its own exports.