Question 1

When two countries specialize and trade:

Accepted Answer

A)  they both can enjoy more output than either country could produce on its own.
B)  they can achieve consumption levels beyond their own production possibilities.
C)  both countries can gain surplus.
D)  All of these are true.E) B) and C)
F) None of the above

Question 2

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.  If this economy were to open to free trade:

Accepted Answer

A)  consumer surplus would be $605.
B)  total surplus would be $1,370.
C)  producer surplus would be $605.
D)  deadweight loss would be $160.E) B) and D)
F) A) and C)

Question 3

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.  If the economy were to open to free trade, it would become:

Accepted Answer

A)  a net importer.
B)  a net exporter.
C)  an autarky.
D)  less efficient, with less overall market surplus.E) All of the above
F) None of the above

Question 4

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.  What amount of the good is bought by domestic consumers when there is open trade?

Accepted Answer

A)  1,500 units
B)  1,150 units
C)  500 units
D)  250 unitsE) None of the above
F) All of the above

Question 5

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.   If this economy was previously open to free trade, the introduction of the tariff will cause producers to:

Accepted Answer

A)  lose the surplus in areas H + I + J + K + L.
B)  gain the surplus in areas H + I + J + K + L.
C)  lose the surplus in area H.
D)  gain the surplus in area H.E) B) and C)
F) A) and D)

Question 6

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.   If this country is an autarky, what is the equilibrium price?

Accepted Answer

A)  $10
B)  $14
C)  $17
D)  $4E) B) and C)
F) A) and D)

Question 7

A country that produces and consumes a large amount of coffee comparatively has just entered the world market. If the country becomes a net-exporter of coffee, we would expect that the world _______ curve will shift to the _______ more than the world _______ curve.

Accepted Answer

A)  supply; right; demand
B)  supply; left; demand
C)  demand; right; supply
D)  demand; left; supplyE) A) and B)
F) All of the above

Question 8

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.   If this economy decides to open to free trade, how many units of the good will be produced domestically?

Accepted Answer

A)  45
B)  85
C)  120
D)  75E) A) and C)
F) B) and D)

Question 9

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.  If this economy were an autarky, which area(s) of the graph would display producer surplus?

Accepted Answer

A)  A
B)  A + B + C
C)  H
D)  H + D + EE) None of the above
F) B) and C)

Question 10

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.  If this economy goes from free trade to imposing an $8 per unit tariff:total surplus will fall by $28,000.imports will fall by 7,000.producer surplus will increase by $36,000.

Accepted Answer

A)  II only
B)  I and II only
C)  I and III only
D)  I, II, and IIIE) A) and B)
F) None of the above

Question 11

A country with a lot of land relative to its population may have a comparative advantage in _______ activities.

Accepted Answer

A)  capital-intensive
B)  labor-intensive
C)  land-intensive
D)  technology-intensiveE) B) and C)
F) A) and D)

Question 12

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.  If this economy was previously open to free trade, the introduction of the tariff will cause government revenue to:

Accepted Answer

A)  increase by areas J + K.
B)  increase by areas F + G + J + K.
C)  increase by areas I + J + K + L.
D)  decrease by areas I + L.E) A) and D)
F) A) and C)

Question 13

We might predict that Hawaii has a comparative advantage in the production of pineapples compared to Russia because Hawaii has:

Accepted Answer

A)  a climate more suitable for growing pineapples.
B)  more land available for growing pineapples.
C)  more advanced farming technology.
D)  less governmental oversight in the pineapple industry.E) B) and C)
F) A) and B)

Question 14

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.  If this economy decides to impose a $15 per unit tariff, what will deadweight loss be?

Accepted Answer

A)  $2,100
B)  $3,000
C)  $600
D)  $250E) A) and B)
F) A) and C)

Question 15

Which of the following is a common tool used to restrict trade through taxation?

Accepted Answer

A)  Tariffs
B)  Immigration restrictions
C)  International waters use policies
D)  QuotasE) A) and C)
F) A) and D)

Question 16

Which of the following is a common tool used to restrict trade through the quantity that can be traded?

Accepted Answer

A)  Tariffs
B)  Immigration restrictions
C)  International waters use policies
D)  Import quotasE) A) and C)
F) C) and D)

Question 17

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.  If the economy was previously in autarky, the decision to open to trade and impose a tariff will cause the economy to:

Accepted Answer

A)  increase its output from 250 units to 500 units.
B)  decrease its output from 815 units to 500 units.
C)  increase its output from 500 units to 815 units.
D)  decrease its output from 1,500 units to 1,150 units.E) C) and D)
F) A) and C)

Question 18

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.   If this economy were open to free trade, how many units of the good would be produced domestically?

Accepted Answer

A)  115
B)  60
C)  150
D)  90E) All of the above
F) C) and D)

Question 19

A country with plenty of capital and little land may have a comparative advantage in _______ activities.

Accepted Answer

A)  land-intensive
B)  capital-intensive
C)  labor-intensive
D)  technology-intensiveE) B) and C)
F) A) and D)

Question 20

A preference for policies that place limits on trade is called:

Accepted Answer

A)  liberalization.
B)  free trade.
C)  protectionism.
D)  autarky.E) All of the above
F) B) and D)

Exam 17: International Trade

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were an autarky, which area(s) of the graph would display producer surplus?

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this country is an autarky, what is the equilibrium price?

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If the economy was previously in autarky, the decision to open to trade and impose a tariff will cause the economy to:

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy decides to impose a $15 per unit tariff, what will deadweight loss be?

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. What amount of the good is bought by domestic consumers when there is open trade?

Correct Answer
verified

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were to open to free trade:

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were open to free trade, how many units of the good would be produced domestically?

Correct Answer
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We might predict that Hawaii has a comparative advantage in the production of pineapples compared to Russia because Hawaii has:

Correct Answer
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A country that produces and consumes a large amount of coffee comparatively has just entered the world market. If the country becomes a net-exporter of coffee, we would expect that the world ___ curve will shift to the _ more than the world _____ curve.

Correct Answer
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When two countries specialize and trade:

Correct Answer
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The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If this economy was previously open to free trade, the introduction of the tariff will cause government revenue to:

Correct Answer
verified

A preference for policies that place limits on trade is called:

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If this economy was previously open to free trade, the introduction of the tariff will cause producers to:

Correct Answer
verified

A country with a lot of land relative to its population may have a comparative advantage in _______ activities.

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy decides to open to free trade, how many units of the good will be produced domestically?

Correct Answer
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Which of the following is a common tool used to restrict trade through taxation?

Correct Answer
verified

A country with plenty of capital and little land may have a comparative advantage in _______ activities.

Correct Answer
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Which of the following is a common tool used to restrict trade through the quantity that can be traded?

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If the economy were to open to free trade, it would become:

Correct Answer
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Exam 17: International Trade

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were an autarky, which area(s) of the graph would display producer surplus?

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this country is an autarky, what is the equilibrium price?

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If the economy was previously in autarky, the decision to open to trade and impose a tariff will cause the economy to:

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy decides to impose a $15 per unit tariff, what will deadweight loss be?

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. What amount of the good is bought by domestic consumers when there is open trade?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were to open to free trade:

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were open to free trade, how many units of the good would be produced domestically?

Correct AnswerverifiedShow Answer

We might predict that Hawaii has a comparative advantage in the production of pineapples compared to Russia because Hawaii has:

Correct AnswerverifiedShow Answer

A country that produces and consumes a large amount of coffee comparatively has just entered the world market. If the country becomes a net-exporter of coffee, we would expect that the world _______ curve will shift to the _______ more than the world _______ curve.

Correct AnswerverifiedShow Answer

When two countries specialize and trade:

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If this economy was previously open to free trade, the introduction of the tariff will cause government revenue to:

Correct AnswerverifiedShow Answer

A preference for policies that place limits on trade is called:

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If this economy was previously open to free trade, the introduction of the tariff will cause producers to:

Correct AnswerverifiedShow Answer

A country with a lot of land relative to its population may have a comparative advantage in _______ activities.

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy decides to open to free trade, how many units of the good will be produced domestically?

Correct AnswerverifiedShow Answer

Which of the following is a common tool used to restrict trade through taxation?

Correct AnswerverifiedShow Answer

A country with plenty of capital and little land may have a comparative advantage in _______ activities.

Correct AnswerverifiedShow Answer

Which of the following is a common tool used to restrict trade through the quantity that can be traded?

Correct AnswerverifiedShow Answer

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If the economy were to open to free trade, it would become:

Correct AnswerverifiedShow Answer

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A country that produces and consumes a large amount of coffee comparatively has just entered the world market. If the country becomes a net-exporter of coffee, we would expect that the world ___ curve will shift to the _ more than the world _____ curve.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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