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, how many units will domestic consumers demand, and how many units will domestic producers produce?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 2

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?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 3

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?

Accepted Answer

The answer of Suppose in the country of Jumanji that...

Question 4

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

Accepted Answer

The experience of the textile industry is primarily concerned with the effects of free trade on domestic industries and international competition. The question of which argument for restricting free trade is politically feasible is a separate issue that applies to all industries, not just the textile industry. Therefore, it is not as directly relevant to the economic policy questions raised by the textile industry experience.

Question 5

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?

Accepted Answer

The answer of Suppose the world price of coffee is...

Question 6

With which of the Ten Principles of Economics is the study of international trade most closely connected?

Accepted Answer

The study of international trade is most closely connected with the principle that "trade can make everyone better off." In international trade, countries can specialize in producing goods and services that they have a comparative advantage in, and then trade with other countries for goods and services that they do not produce as efficiently. This can result in increased efficiency and overall welfare for all countries involved.

Question 7

A tax on an imported good is called a ______ .

Accepted Answer

The answer of A tax on an imported good is...

Question 8

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?

Accepted Answer

The answer of Suppose in the country of Nash that...

Question 9

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?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 10

A logical starting point from which the study of international trade begins is

Accepted Answer

The principle of comparative advantage is the logical starting point for the study of international trade. This principle states that countries should specialize in producing the goods and services that they can produce relatively more efficiently, and then trade with other countries to obtain the goods and services that they cannot produce as efficiently. This leads to greater economic efficiency and overall welfare for all countries involved in the trade.

Question 11

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?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 12

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?

Accepted Answer

The answer of Suppose in the country of Jumanji that...

Question 13

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?

Accepted Answer

The answer of Suppose the world price of coffee is...

Question 14

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

Accepted Answer

The answer of A country has a comparative advantage in...

Question 15

Which of the following tools and concepts is useful in the analysis of international trade?

Accepted Answer

All of the above tools and concepts are useful in the analysis of international trade. Total surplus helps to determine the overall welfare effects of trade, while domestic supply and equilibrium price are important in understanding the effects of trade on domestic producers and consumers.

Question 16

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?

Accepted Answer

The answer of Suppose in the country of Nash that...

Question 17

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?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Question 18

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?

Accepted Answer

The answer of Figure 9-27
The following diagram shows the domestic...

Question 19

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

Accepted Answer

Foreign competitors have been able to produce quality textile goods at lower costs, which has made it difficult for the U.S. textile industry to compete. This has been a major factor in the decline of the U.S. textile industry over the past 100 or so years.

Question 20

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?

Accepted Answer

The answer of Figure 9-26
The following diagram shows the domestic...

Quiz 9: Application: International Trade

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?

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?

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

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?

With which of the Ten Principles of Economics is the study of international trade most closely connected?

A tax on an imported good is called a ______ .

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?

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?

A logical starting point from which the study of international trade begins is

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?

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?

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?

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

Which of the following tools and concepts is useful in the analysis of international trade?

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?

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?

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?

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

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?