Question 1

Blanket standards on imports usually address issues affecting:

Accepted Answer

A)  domestic consumers.
B)  domestic producers.
C)  foreign production practices.
D)  Blanket standards address issues affecting all of these.E) A) and C)
F) A) and B)

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 country is an autarky, what is the equilibrium price?

Accepted Answer

A)  $23
B)  $16
C)  $11
D)  $45E) A) and C)
F) None of the above

Question 3

As a general rule, free trade:

Accepted Answer

A)  acts to equalize the supply of and demand for factors of production across countries.
B)  causes factor prices to converge across countries.
C)  increases the supply of factors of production that are domestically scarce.
D)  All of these are true.E) A) and B)
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.  If this economy's government restricts free trade, area G will represent quota rents going to:

Accepted Answer

A)  domestic producers.
B)  foreign firms or governments.
C)  the domestic government.
D)  foreign producers.E) A) and D)
F) All of the above

Question 5

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 trade, domestic producers would increase:

Accepted Answer

A)  production by 75 units.
B)  production by 35 units.
C)  prices by $5.
D)  prices by $11.E) A) and D)
F) None of the above

Question 6

Which of the following statements is true about the surplus gained from international free trade?

Accepted Answer

A)  Everyone involved in trade gains surplus.
B)  There may be individual winners and losers of surplus within a country.
C)  Only the producers in a country gain surplus.
D)  Only the consumers in a country gain surplus.E) All of the above
F) None of the above

Question 7

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.  When this economy is open to free trade without restriction, the amount imported is:

Accepted Answer

A)  900 units.
B)  1,250 units.
C)  650 units.
D)  1,000 units.E) B) and C)
F) C) and D)

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, it will _______ the good because the _______ price is greater than the _______ price.

Accepted Answer

A)  import; domestic; world
B)  export; domestic; world
C)  import; world; domestic
D)  export; world; domesticE) B) and D)
F) A) and B)

Question 9

When a country gains from trade:

Accepted Answer

A)  everyone in the country benefits from the trade.
B)  the country's net gain of surplus is positive.
C)  the country's total producer surplus increases.
D)  the country's total consumer surplus increases.E) A) and B)
F) A) and C)

Exam 17: International Trade

As a general rule, free trade:

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. If this economy's government restricts free trade, area G will represent quota rents going to:

Correct Answer
verified

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. When this economy is open to free trade without restriction, the amount imported is:

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, it will ___ the good because the _ price is greater than the _____ price.

Correct Answer
verified

Blanket standards on imports usually address issues affecting:

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 country is an autarky, what is the equilibrium price?

Correct Answer
verified

When a country gains from 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 to open to trade, domestic producers would increase:

Correct Answer
verified

Which of the following statements is true about the surplus gained from international free trade?

Correct Answer
verified

Exam 17: International Trade

As a general rule, free trade:

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. If this economy's government restricts free trade, area G will represent quota rents going to:

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. When this economy is open to free trade without restriction, the amount imported is:

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, it will _______ the good because the _______ price is greater than the _______ price.

Correct AnswerverifiedShow Answer

Blanket standards on imports usually address issues affecting:

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

When a country gains from 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 to open to trade, domestic producers would increase:

Correct AnswerverifiedShow Answer

Which of the following statements is true about the surplus gained from international free trade?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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, it will ___ the good because the _ price is greater than the _____ price.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified