9-1 to 9-2

Figure 9-23 with free trade the domestic price and domestic quantity demanded are

$120 and 5

When a country allows trade and becomes an importer of a good

Consumer surplus increases and producer surplus decreases

When a country abandons a no trade policy adopts a free trade policy and becomes an importer of a particular good

Consumer surplus increases and total surplus increases in the market for that good

When a country allows trade and becomes an exporter of bicycles

Domestic producers of bicycles are better off domestic consumers of bicycles are worse off and the economic well being of the country rises

Figure 9-19 With free trade the country for which the figure is drawn will

Import 50 units of textiles

Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland? Correct!

It increases consumer surplus decreases producer surplus and increases total surplus

Assume for Mexico that the domestic price of beets without international trade is higher than the world price of beets this suggests that in rhe production of beets

Other countries have a comparative advantage over Mexico and Mexico will import beets

Domestic producers of a good become worse off, and domestic consumers of a good become better off, when a country begins allowing international trade in that good and

The country becomes an importer of the good as a result

Figure 9-16 the areaC+D+E+F Represents

The decrease in consumer surplus caused by the tariff

Assume for Vietnam that the domestic price of textiles without international trade is lower than the world prices of textiles . This suggests that in the production of textiles

Vietnam has a comparative advantage over other countries and Vietnam will export textiles .

Refer to Figure 9-5. Bearing in mind that this country is "small," which of the following events conceivably could cause the country to switch from being an importer of tricycles to an exporter of tricycles

Within this country the price of a substitute for tricycles decreases

For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that

a tariff raises revenue for that country's government, while an import quota does not.

Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of pistachios decreases to equal the world price of pistachios, then

at the world price, the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country

The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes

harm the United States as a whole, because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue

When the nation of duxembourg allows trade and becomes an importer of software

residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises