Question 1

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, international trade ________ total surplus in the United States by ________.

Accepted Answer

International trade increases total surplus by allowing countries to specialize and trade, leading to a net gain in economic welfare. The figure indicates an increase of $128 million.

Question 2

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

Accepted Answer

When a country opens up to trade and becomes an importer, consumer surplus increases because consumers can buy sugar at a lower world price. Producer surplus decreases because domestic producers receive a lower price for their sugar. Total surplus increases as the gains from trade (consumer gains outweighing producer losses) lead to a net welfare gain.

Question 3

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, international trade ________ consumer surplus in the United States by ________.

Accepted Answer

The answer of  The figure shows the market for...

Question 4

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, international trade ________ consumer surplus in the United States by ________.

Accepted Answer

The answer of  The figure shows the market for...

Question 5

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

Accepted Answer

When a country exports computer chips, producers benefit from higher prices and increased sales, while consumers face higher prices, leading to a redistribution of surplus from consumers to producers.

Question 6

Based on the table below, at what world price would the country export the good?

Accepted Answer

The answer of Based on the table below, at what...

Question 7

Consider a market that is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market then

Accepted Answer

When the world price is lower than the domestic equilibrium price, the country will import the good, leading to a decrease in the domestic price to the world price level. As a result, the quantity supplied domestically will fall because producers are less willing to supply at the lower price.

Question 8

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Accepted Answer

The answer of In a market open to international trade,...

Question 9

Based on the table below, at what world price would the country import the good?

Accepted Answer

The answer of Based on the table below, at what...

Question 10

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, with international trade American consumers buy ________ million shirts per year.

Accepted Answer

The correct answer is 48 million shirts per year, as international trade typically increases the quantity of goods available to consumers, allowing them to purchase more than they would without trade.

Question 11

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, with international trade U.S. companies buy ________ helicopters per year.

Accepted Answer

The answer of  The figure shows the market for...

Question 12

Suppose the world price of a good is $4. Based on the table below, the country would

Accepted Answer

The answer of Suppose the world price of a good...

Question 13

A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from

Accepted Answer

When a country opens up to trade and imports clothing, domestic consumers benefit from lower prices and increased variety, while domestic producers face competition from foreign producers, leading to a redistribution of surplus from producers to consumers.

Question 14

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, international trade ________ producer surplus in the United States by ________.

Accepted Answer

International trade typically decreases producer surplus in a country due to increased competition from foreign producers, which can lead to lower prices and reduced market share for domestic producers. In this case, the decrease is quantified as $192 million.

Question 15

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, with international trade ________ helicopters per year are produced in the United States.

Accepted Answer

With international trade, the United States can sell helicopters for $36 million each, which is above the domestic equilibrium price of $30 million. As a result, the quantity supplied increases from 480 to 720 helicopters per year, while the quantity demanded decreases from 720 to 360 helicopters per year. The difference between quantity supplied and quantity demanded (720-360=360) represents the quantity of helicopters that are exported. Therefore, the total quantity of helicopters produced in the United States with international trade is 720 + 360 = 1080, but only 720 of them are consumed domestically.

Question 16

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, the United States ________ helicopters per year.

Accepted Answer

The answer of  The figure shows the market for...

Question 17

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, with international trade ________ million shirts per year are produced in the United States.

Accepted Answer

Without the figure, it's impossible to accurately determine the correct answer. However, based on common questions related to international trade and production, the answer provided here is a placeholder and should not be considered accurate without the context of the figure.

Question 18

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, with international trade the United States ________ million shirts per year.

Accepted Answer

The answer of  The figure shows the market for...

Question 19

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

Accepted Answer

When a country becomes an exporter of wheat, domestic producers benefit from higher prices on the world market, increasing producer surplus. However, domestic consumers face higher prices, reducing consumer surplus. Overall, total surplus increases due to the gains from trade.

Question 20

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In the figure above, international trade ________ producer surplus in the United States by ________.

Accepted Answer

The answer of  The figure shows the market for...

Quiz 7: Global Markets in Action

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade total surplus in the United States by .

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will , producer surplus will , and total surplus will .

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade consumer surplus in the United States by .

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

Based on the table below, at what world price would the country export the good?

Consider a market that is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market then

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Based on the table below, at what world price would the country import the good?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade American consumers buy ________ million shirts per year.

Suppose the world price of a good is $4. Based on the table below, the country would

A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade producer surplus in the United States by .

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade ________ million shirts per year are produced in the United States.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade the United States ________ million shirts per year.

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will , producer surplus will , and total surplus will .

Quiz 7: Global Markets in Action

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade ________ total surplus in the United States by ________.

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade ________ consumer surplus in the United States by ________.

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

Based on the table below, at what world price would the country export the good?

Consider a market that is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market then

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Based on the table below, at what world price would the country import the good?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade American consumers buy ________ million shirts per year.

Suppose the world price of a good is $4. Based on the table below, the country would

A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade ________ producer surplus in the United States by ________.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade ________ million shirts per year are produced in the United States.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade the United States ________ million shirts per year.

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade total surplus in the United States by .

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will , producer surplus will , and total surplus will .

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade consumer surplus in the United States by .

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade producer surplus in the United States by .

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will , producer surplus will , and total surplus will .