Micro 9t

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

the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good.

Refer to Figure 9-20. Vietnam's gains from trade in rice amount to

1500

Refer to Figure 9-13. Consumer surplus before trade is

3,600

Refer to Figure 9-3. Relative to a no-trade situation, which of the following comes with trade?

Consumer surplus decreases by $1,000 and producer surplus increases by $1,500.

Suppose England exports cars to Australia and imports cheese from Mexico. This situation suggests that

England has a comparative advantage relative to Australia in producing cars, and Mexico has a comparative advantage relative to England in producing cheese.

Refer to Figure 9-7. The equilibrium price and the equilibrium quantity of cheese in Wales before trade are

P0 and Q0.

Refer to Figure 9-15. With trade and without a tariff, the price and domestic quantity demanded are

P1 and Q4

Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Revenue is raised for the domestic government.

pain is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Spain imposes a $5 tariff on chips. As a result,

Spanish consumers of chips lose and Spanish producers of chips gain.

Refer to Figure 9-8. The price corresponding to the horizontal dotted line on the graph represents the price of cars

before trade is allowed

What is the fundamental basis for trade among nations?

comparative advantage

When a country that imports a particular good imposes an import quota on that good,

consumer surplus decreases and total surplus decreases in the market for that good.

The world price of a ton of steel is $1,000. Before Russia allowed trade in steel, the price of a ton of steel there was $650. Once Russia allowed trade in steel with other countries, Russia began

exporting steel and the price per ton in Russia increased to $1,000.

Refer to Figure 9-17. When the country moves from no trade to free trade, consumer surplu

increases by $1,200 and producer surplus decreases by $600.