Chapter 9
X Refer to Figure 9-26. As a result of opening up the baseball market to international trade, the U.S. will a.export 300 baseballs.b.export 600 baseballs.c.import 400 baseballs.d.import 600 baseballs.
a.export 300 baseballs.
Refer to Figure 9-11. Producer surplus plus consumer surplus in this market before trade is a.A + B + C + D.b.B + C + D.c.A + B + C.d.A + B.
c.A + B + C.
Refer to figure 9-26. Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is a.$12b.$8c.$16d.$10
d. $10
X Refer to Figure 9-13. With trade, domestic production and domestic consumption, respectively, are a.600 and 300.b.300 and 900.c.600 and 900.d.600 and 600
d.600 and 600.
The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if a.Canada permits international trade in soybeans.b.total surplus exceeds consumer surplus in the Canadian soybean market.c.consumer surplus equals producer surplus in the Canadian soybean market.d.Canada forbids international trade in soybeans.
d.Canada forbids international trade in soybeans.
Refer to Figure 9-12. Producer surplus after trade is a.$38,400.b.$30,000.c.$35,200.d.$28,000.
a.$38,400
X Refer to Figure 9-11. Producer surplus in this market after trade is a.B + C + D.b.C.c.C + B.d.A + B + D.
a.B + C + D.
Refer to Figure 9-10. The price and quantity of rifles in Mexico before trade is a.P0 and Q0.b.P1 and Q1.c.P1 and Q0.d.P2 and Q2.
a.P0 and Q0.
Refer to Figure 9-12. Consumer surplus after trade is a.$14,400.b.$9,600.c.$6,400.d.$12,800.
b.$9,600.
Refer to Figure 9-11. Producer surplus plus consumer surplus in this market after trade is a.A + B.b.A + B + C + D.c.B + C + D.d.A + B + C.
b.A + B + C + D.
Refer to figure 9-26. Consumer surplus in the U.S. prior to the opening of the baseball market to international trade is the area a.Ab.A + B + Ec.C + Fd.A + B + C
b.A + B + E
Refer to Figure 9-26. The figure shows that a.there will be a shortage of baseballs after the U.S. market for baseballs opens up to international trade.b.the U.S. has a comparative advantage in the production of baseballs.c.other countries have an absolute advantage in the production of baseballs.d.there will be a surplus of baseballs if the U.S. opens the market for baseballs to international trade.
b.the U.S. has a comparative advantage in the production of baseballs.
Refer to Figure 9-11. Consumer surplus in this market after trade is a.B + C + D.b.C + B.c.A + B + D.d.A.
c.A + B + D.
Refer to Figure 9-11. Consumer surplus in this market before trade is a.B + C.b.C.c.A.d.A + B + D.
c.A.
X Refer to Figure 9-10. With trade, the equilibrium price of rifles and the equilibrium quantity of rifles demanded in Mexico are a.P1 and Q2.b.P0 and Q0.c.P2 and Q2.d.P1 and Q1.
c.P2 and Q2.
Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests a.Russia has an absolute advantage over Ireland in producing sunflower seeds, and Brazil has an absolute advantage over Russia in producing coffee.b.Russia has an absolute advantage over Brazil in producing coffee, and Ireland has an absolute advantage over Russia in producing sunflower seeds.c.Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee.d.Russia has a comparative advantage over Brazil in producing coffee, and Ireland has a comparative advantage over Russia in producing sunflower seeds.
c.Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee.
A tariff on a product makes a.domestic sellers worse off and domestic buyers worse off.b.domestic sellers worse off and domestic buyers better off.c.domestic sellers better off and domestic buyers worse off.d.domestic sellers better off and domestic buyers better off.
c.domestic sellers better off and domestic buyers worse off.
A tariff is a a.tax on an exported good.b.limit on how much of a good can be exported.c.tax on an imported good.d.limit on how much of a good can be imported.
c.tax on an imported good.
Refer to Figure 9-10. When trade takes place, the quantity Q 2 - Q 1 is a.the number of rifles produced in Mexico.b.the number of rifles bought and sold in Mexico.c.the number of rifles imported by Mexico.d.the number of rifles exported by Mexico.
c.the number of rifles imported by Mexico.
Refer to figure 9-26. After the opening of the baseball market to international trade, producer surplus in the U.S. a.decreases by the area B + E.b.decreases by the area E + F.c.increases by the area B + E + Gd.increases by the area G.
c.increases by the area B + E + G