Filters
Question type
Study Flashcards

Without free trade, the import price of a good must be equal to the export price of a good.

A) True
B) False

Correct Answer

verifed

verified

Graph 9-2 This graph refers to the market for saddles in Argentina. Graph 9-2 This graph refers to the market for saddles in Argentina. -According Graph 9-2, the quantity of saddles exported from Argentina is: A) Q<sub>0</sub> minus Q<sub>1</sub> B) Q<sub>2</sub> minus Q<sub>1</sub> C) Q<sub>2</sub> minus Q<sub>0</sub> D) Q<sub>0</sub> -According Graph 9-2, the quantity of saddles exported from Argentina is:


A) Q0 minus Q1
B) Q2 minus Q1
C) Q2 minus Q0
D) Q0

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Graph 9-6 Graph 9-6 -According to Graph 9-6, the price and domestic quantity demanded after trade would be: A) $20, 2000 B) $20, 2800 C) $10, 2000 D) $10, 2800 -According to Graph 9-6, the price and domestic quantity demanded after trade would be:


A) $20, 2000
B) $20, 2800
C) $10, 2000
D) $10, 2800

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

When a country allows free trade:


A) the domestic price will be greater than the world price
B) the domestic price will be lower than the world price
C) the domestic price will equal the world price
D) it does not matter what the world price is, the domestic price is the prevailing price

E) A) and D)
F) A) and B)

Correct Answer

verifed

verified

When resources devoted to lobbying are included in the analysis of restrictions to international trade:


A) deadweight losses may increase.
B) deadweight losses from fall
C) the welfare of domestic consumers will increase
D) domestic prices will equal world prices

E) C) and D)
F) None of the above

Correct Answer

verifed

verified

When a country allows trade and becomes an importer of a good, which of the following is NOT true?


A) the gains of domestic consumers exceed the losses of domestic producers
B) the losses of domestic producers exceed the gains of domestic consumers
C) the price paid by domestic consumers of the good decreases
D) the price received by domestic producers of the good decreases

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

The infant industry argument:


A) is based on the belief that protecting industries when they are young will pay off later
B) is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children
C) has the support of most economists
D) has proven to be correct in nearly all cases

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Graph 9-4 This graph refers to the market for kiwifruit in New Zealand. Graph 9-4 This graph refers to the market for kiwifruit in New Zealand. -According to Graph 9-4, total surplus in New Zealand after the trade in kiwifruit is: A) a + b B) a + b + c C) a + b + c + d D) b + c + d -According to Graph 9-4, total surplus in New Zealand after the trade in kiwifruit is:


A) a + b
B) a + b + c
C) a + b + c + d
D) b + c + d

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

When a quota is imposed on a market, the:


A) supply curve (above the world price) shifts to the right by the amount of the quota
B) supply curve (above the world price) shifts to the left by the amount of the quota
C) demand curve (above the world price) shifts to the right by the amount of the quota
D) demand curve (above the world price) shifts to the left by the amount of the quota

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

The Closer Economic Relations agreement between New Zealand and Australia is designed to ensure both Australia and New Zealand can exercise their own comparative advantage.

A) True
B) False

Correct Answer

verifed

verified

Graph 9-3 Graph 9-3 -In Graph 9-3, area G represents: A) consumer surplus under free trade B) producer surplus under free trade C) a surplus for import licence holders D) producer surplus before trade -In Graph 9-3, area G represents:


A) consumer surplus under free trade
B) producer surplus under free trade
C) a surplus for import licence holders
D) producer surplus before trade

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

"Lower costs through economies of scale" refers to:


A) one of the reasons for restricting international trade
B) the advantage that can sometimes arise when companies can sell to international markets
C) the way in which big companies can dominate domestic markets when there is no trade
D) the increased variety of goods that can be accessed in a free-trade economy

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

When the free trade treaty CER was signed between New Zealand and Australia, opponents claimed that New Zealand would suffer significant job losses to more efficient Australian producers. Why would you not be surprised to learn that CER did not lift unemployment in either country?

Correct Answer

verifed

verified

In the short run, both Australia and New...

View Answer

When a country allows trade and becomes an exporter of a good, consumer surplus:


A) and producer surplus will increase
B) and producer surplus will decrease
C) will increase and producer surplus will decrease
D) will decrease and producer surplus will increase

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Graph 9-5 This graph refers to the market for oil in Spain. Graph 9-5 This graph refers to the market for oil in Spain. -According to Graph 9-5, the price of oil and the quantity demanded in Spain after trade would be: A) P<sub>1</sub>, Q<sub>1</sub> B) P<sub>1</sub>, Q<sub>2</sub> C) P<sub>1</sub>, Q<sub>0</sub> D) P<sub>0</sub>, Q<sub>0</sub> -According to Graph 9-5, the price of oil and the quantity demanded in Spain after trade would be:


A) P1, Q1
B) P1, Q2
C) P1, Q0
D) P0, Q0

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

Serbia has a small but growing apple juice market. In the past, Serbia has not traded much apple juice with other countries but now it is considering signing an agreement freeing up its apple juice trade with Croatia. Some apple juice growers are worried about the effect that opening up trade will have on their new industry and are meeting with the president to ask him to do something to protect them. What argument might they make to the president? Do they have a good point?

Correct Answer

verifed

verified

The apple farmers are making the infant ...

View Answer

If an import tariff is imposed on a good produced exclusively for export, the tariff will reduce the quantity of the good produced.

A) True
B) False

Correct Answer

verifed

verified

Graph 9-3 Graph 9-3 -In Graph 9-3, the equilibrium price and quantity after the quota would be: A) P<sub>1</sub>, Q<sub>1</sub> B) P<sub>1</sub>, Q<sub>4</sub> C) P<sub>2</sub>, Q<sub>2</sub> D) P<sub>2</sub>, Q<sub>3</sub> -In Graph 9-3, the equilibrium price and quantity after the quota would be:


A) P1, Q1
B) P1, Q4
C) P2, Q2
D) P2, Q3

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

'Tariffs are needed to reduce imports during times of recession in order to increase domestic output.' This statement would be most closely associated with which argument for restricting trade?


A) the jobs argument
B) the infant industry argument
C) the national security argument
D) the unfair competition argument

E) A) and B)
F) A) and D)

Correct Answer

verifed

verified

Import quotas and tariffs both cause the quantity of imports to fall.

A) True
B) False

Correct Answer

verifed

verified

Showing 81 - 100 of 119

Related Exams

Exam 1

Ten Principles of Economics

110 Questions

Exam 2

Thinking Like an Economist

103 Questions

Exam 3

Interdependence and the Gains From Trade

110 Questions

Exam 4

The Market Forces of Supply and Demand

152 Questions

Exam 5

Elasticity and Its Application

133 Questions

Exam 6

Supply, Demand and Government Policies

111 Questions

Exam 7

Consumers, Producers and the Efficiency of Markets

127 Questions

Exam 8

Application: the Costs of Taxation

105 Questions

Exam 10

Externalities

149 Questions

Exam 11

Public Goods and Common Resources

136 Questions

Exam 12

The Design of the Tax System

116 Questions

Exam 13

The Costs of Production

141 Questions

Exam 14

Firms in Competitive Markets

149 Questions

Exam 15

Monopoly

159 Questions

Exam 16

Monopolistic Competition

158 Questions

Exam 17

Oligopoly and Business Strategy

135 Questions

Exam 18

Competition Policy

78 Questions

Exam 19

The Markets for the Factors of Production

143 Questions

Exam 20

Earnings and Discrimination

145 Questions

Exam 21

Income Inequity and Poverty

85 Questions

Exam 22

The Theory of Consumer Choice

117 Questions

Exam 23

Frontiers of Microeconomics

82 Questions

Show Answer