Question 1

Trade enhances the economic well-being of a nation in the sense that

Accepted Answer

A)   both domestic producers and domestic consumers of a good become better off with trade,regardless of whether the nation imports or exports the good in question.
B)   the gains of domestic producers of a good exceed the losses of domestic consumers of a good,regardless of whether the nation imports or exports the good in question.
C)   trade results in an increase in total surplus.
D)   trade puts downward pressure on the prices of all goods.E) None of the above
F) B) and D)

Question 2

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

Accepted Answer

A)   consumer surplus increases and total surplus increases in the market for that good.
B)   consumer surplus increases and total surplus decreases in the market for that good.
C)   consumer surplus decreases and total surplus increases in the market for that good.
D)   consumer surplus decreases and total surplus decreases in the market for that good.E) B) and D)
F) C) and D)

Question 3

Figure 9-15 
-Refer to Figure 9-15.For the saddle market,area B represents

Accepted Answer

A)   government's revenue from the tariff.
B)   the deadweight loss of the tariff.
C)   the increase in producer surplus,relative to the free-trade situation,as a result of the tariff.
D)   None of the above is correct.E) A) and C)
F) A) and D)

Question 4

Trade raises the economic well-being of a nation in the sense that

Accepted Answer

A)   the gains of the winners exceed the losses of the losers.
B)   everyone in an economy gains from trade.
C)   since countries can choose what products to trade,they will pick those products that are most beneficial to society.
D)   the nation joins the international community when it begins to engage in trade.E) A) and B)
F) A) and C)

Question 5

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   $3,600.
B)   $4,600.
C)   $5,400.
D)   $6,250.E) A) and D)
F) None of the above

Exam 9: Application: International Trade

Trade raises the economic well-being of a nation in the sense that

Correct Answer
verified

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Correct Answer
verified

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

Correct Answer
verified

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

Correct Answer
verified

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area B represents

Correct Answer
verified

Trade enhances the economic well-being of a nation in the sense that

Correct Answer
verified

Exam 9: Application: International Trade

Trade raises the economic well-being of a nation in the sense that

Correct AnswerverifiedShow Answer

If Belgium exports chocolate to the rest of the world,then Belgian chocolate producers benefit from higher producer surplus,Belgian chocolate consumers are worse off because of lower consumer surplus,and total surplus in Belgium increases because of the exports of chocolate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

Correct AnswerverifiedShow Answer

Figure 9-15 -Refer to Figure 9-15.For the saddle market,area B represents

Correct AnswerverifiedShow Answer

Trade enhances the economic well-being of a nation in the sense that

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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