Khanh Nguyen Minh

Dashboard  PE_S2(2019-2020)DH45ISB-2  Problem sets  PS4

Started on Saturday, 29 February 2020, 12:30 AM

State Finished
Completed on Saturday, 29 February 2020, 12:36 AM
Time taken 6 mins 10 secs
Marks 30.0/30.0
Grade 10.0 out of 10.0 (100%)

Question 1 1. Suppose Haiti has a comparative advantage over other countries in producing sugar, but other countries have an absolute advantage over
Correct Haiti in producing sugar. If trade in sugar is allowed, Haiti

Mark 1.0 out of 1.0

Select one:
a. will import sugar.

b. will export sugar.

c. will either export sugar or export sugar, but it is not clear from the given information.

d. would have nothing to gain either from exporting or importing sugar.

correct
The correct answer is: will export sugar.

Question 2 2. Suppose the United States exports cars to France and imports cheese from Switzerland. This situation suggests that
Correct
Select one:
Mark 1.0 out of 1.0
a. the United States has a comparative advantage relative to Switzerland in producing cheese, and France has a comparative advantage
relative to the United States in producing cars.

b. the United States has a comparative advantage relative to France in producing cars, and Switzerland has a comparative advantage
relative to the United States in producing cheese.

c. the United States has an absolute advantage relative to Switzerland in producing cheese, and France has an absolute advantage relative
to the United States in producing cars.

d. the United States has an absolute advantage relative to France in producing cars, and Switzerland has an absolute advantage relative to
the United States in producing cheese.

correct
The correct answer is: the United States has a comparative advantage relative to France in producing cars, and Switzerland has a comparative
advantage relative to the United States in producing cheese.

Question 3 3. When a nation first begins to trade with other countries and the nation becomes an exporter of corn,
Correct
Select one:
Mark 1.0 out of 1.0
a. this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade.

b. this is an indication that the nation has a comparative advantage in producing corn.

c. the nation's consumers of corn become worse off and the nation's producers of corn become better off.
d. All of the above are correct.

correct
The correct answer is: All of the above are correct.
Question 4 4. If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,
Correct
Select one:
Mark 1.0 out of 1.0
a. the country will be an exporter of the good.

b. the country will be an importer of the good.

c. the country will be neither an exporter nor an importer of the good.

d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the
good, or neither.

correct
The correct answer is: the country will be an importer of the good.

Question 5 5. After a country goes from disallowing trade in sugar with other countries to allowing trade in sugar with other countries,
Correct
Select one:
Mark 1.0 out of 1.0
a. the domestic price of sugar will be greater than the world price of sugar.

b. the domestic price of sugar will be lower than the world price of sugar.

c. the domestic price of sugar will equal the world price of sugar.

d. The world price of sugar does not matter; the domestic price of sugar prevails.

correct
The correct answer is: the domestic price of sugar will equal the world price of sugar.

Question 6 6. The world price of a pound of T-bone steak is $9.00. Before Guatemala allowed trade in beef, the price of a pound of T-bone steak there was
Correct $12.00. Once Guatemala began allowing trade in beef with other countries, Guatemala began

Mark 1.0 out of 1.0

Select one:
a. exporting T-bone steak and the price per pound in Guatemala remained at $12.00.
b. exporting T-bone steak and the price per pound in Guatemala decreased to $9.00.

c. importing T-bone steak and the price per pound in Guatemala remained at $12.00.
d. importing T-bone steak and the price per pound in Guatemala decreased to $9.00.

correct
The correct answer is: importing T-bone steak and the price per pound in Guatemala decreased to $9.00.

Question 7 7. When, in our analysis of the gains and losses of international trade, we assume that a country is small, we are in effect assuming that the
Correct country

Mark 1.0 out of 1.0

Select one:
a. cannot experience significant gains or losses by trading with other countries.
b. cannot have a significant comparative advantage over other countries.

c. cannot affect world prices by trading with other countries.

d. All of the above are correct.

correct
The correct answer is: cannot affect world prices by trading with other countries.
Question 8 8. When a country allows trade and becomes an exporter of a good,
Correct
Select one:
Mark 1.0 out of 1.0
a. domestic producers gain and domestic consumers lose.

b. domestic producers lose and domestic consumers gain.

c. domestic producers and domestic consumers both gain.

d. domestic producers and domestic consumers both lose.

correct
The correct answer is: domestic producers gain and domestic consumers lose.

Question 9 9. When a country allows trade and becomes an exporter of a good,

Correct
Select one:
Mark 1.0 out of 1.0
a. the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good.
b. the gains of the domestic consumers of the good exceed the losses of the domestic producers of the good.

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

correct
The correct answer is: the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good.

Question 10 10. When a country allows trade and becomes an exporter of a good,
Correct
Select one:
Mark 1.0 out of 1.0
a. consumer surplus and producer surplus both increase.
b. consumer surplus and producer surplus both decrease.

c. consumer surplus increases and producer surplus decreases.

d. consumer surplus decreases and producer surplus increases.

correct
The correct answer is: consumer surplus decreases and producer surplus increases.

Question 11 11. When the nation of Econoland allows trade and becomes an exporter of televisions,
Correct
Select one:
Mark 1.0 out of 1.0
a. residents of Econoland who produce televisions become worse off; residents of Econoland who buy televisions become better off; and
the economic well-being of Econoland rises.
b. residents of Econoland who produce televisions become worse off; residents of Econoland who buy televisions become better off; and
the economic well-being of Econoland falls.

c. residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become worse off; and
the economic well-being of Econoland rises.
d. residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become worse off; and
the economic well-being of Econoland falls.

correct
The correct answer is: residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become
worse off; and the economic well-being of Econoland rises.
Question 12

Correct

Mark 1.0 out of 1.0

12. Refer to Figure 9-1. Without trade, consumer surplus is

Select one:
a. $210.

b. $245.
c. $455.
d. $490.

correct
The correct answer is: $245.

Question 13 13. Refer to Figure 9-1. Without trade, producer surplus is

Correct
Select one:
Mark 1.0 out of 1.0
a. $210.
b. $245.

c. $455.
d. $490.

correct
The correct answer is: $210.

Question 14 14. Refer to Figure 9-1. With free trade, this country will
Correct
Select one:
Mark 1.0 out of 1.0
a. import 40 baskets.
b. import 70 baskets.

c. export 35 baskets.
d. export 65 baskets.

correct
The correct answer is: export 65 baskets.
Question 15 15. Refer to Figure 9-1. If this country chooses to trade, the price of baskets in this country will be
Correct
Select one:
Mark 1.0 out of 1.0
a. $10 and 40 baskets will be sold domestically.

b. $10 and 105 baskets will be domestically.

c. $7 and 70 baskets will be sold domestically.

d. $7 and 40 baskets will be sold domestically.

correct
The correct answer is: $10 and 40 baskets will be sold domestically.

Question 16 16. Refer to Figure 9-1. With free trade, consumer surplus is
Correct
Select one:
Mark 1.0 out of 1.0
a. $45.
b. $80.

c. $210.
d. $245.

correct
The correct answer is: $80.

Question 17 17. Refer to Figure 9-1. With free trade, producer surplus is
Correct
Select one:
Mark 1.0 out of 1.0
a. $80.00.
b. $210.00.

c. $245.50.
d. $472.50.

correct
The correct answer is: $472.50.
Question 18

Correct

Mark 1.0 out of 1.0

18. Refer to Figure 9-1. As a result of trade, total surplus increases by

Select one:
a. $80.

b. $97.50.
c. $162.50.
d. $495.50.

correct
The correct answer is: $97.50.

Question 19 19. Refer to Figure 9-1. This country

Correct
Select one:
Mark 1.0 out of 1.0
a. has a comparative advantage in baskets.
b. should export baskets.

c. is a price taker in the world economy.

d. All of the above are correct.

correct
The correct answer is: All of the above are correct.

Question 20 20. Refer to Figure 9-1. The world price for baskets represents
Correct
Select one:
Mark 1.0 out of 1.0
a. the demand for baskets from the rest of the world.
b. the supply of baskets from the rest of the world.

c. the level of inefficiency in the domestic market caused by trade.

d. the gap between domestic quantity demanded and domestic quantity supplied and the resulting shortage.

correct
The correct answer is: the demand for baskets from the rest of the world.
Question 21 21. Refer to Figure 9-1. At the world price and with free trade,
Correct
Select one:
Mark 1.0 out of 1.0
a. the domestic quantity of baskets demanded is greater than the domestic quantity of baskets supplied.

b. the basket market is in equilibrium.

c. the domestic demand for baskets is perfectly inelastic.
d. both domestic producers of baskets and domestic consumers of baskets are better off than they were without free trade.

correct
The correct answer is: the basket market is in equilibrium.

Question 22

Correct

Mark 1.0 out of 1.0

22. Refer to Figure 9-5. Without trade, the equilibrium price of carnations is

Select one:
a. $8 and the equilibrium quantity is 300.
b. $6 and the equilibrium quantity is 200.

c. $6 and the equilibrium quantity is 400.

d. $4 and the equilibrium quantity is 500.

correct
The correct answer is: $8 and the equilibrium quantity is 300.

Question 23 23. Refer to Figure 9-5. With trade and without a tariff,
Correct
Select one:
Mark 1.0 out of 1.0
a. the domestic price is equal to the world price.
b. carnations are sold at $8 in this market.

c. there is a shortage of 400 carnations in this market.

d. this country imports 200 carnations.

correct
The correct answer is: the domestic price is equal to the world price.
Question 24

Correct

Mark 1.0 out of 1.0

24. Refer to Figure 9-5. Before the tariff is imposed, this country

Select one:
a. imports 200 carnations.

b. imports 400 carnations.

c. exports 200 carnations.
d. exports 400 carnations.

correct
The correct answer is: imports 400 carnations.

Question 25 25. Refer to Figure 9-5. The size of the tariff on carnations is
Correct
Select one:
Mark 1.0 out of 1.0
a. $8 per dozen.
b. $6 per dozen.

c. $4 per dozen.
d. $2 per dozen.

correct
The correct answer is: $2 per dozen.

Question 26 26. Refer to Figure 9-5. The imposition of a tariff on carnations

Correct
Select one:
Mark 1.0 out of 1.0
a. increases the number of carnations imported by 100.
b. increases the number of carnations imported by 200.

c. decreases the number of carnations imported by 200.

d. decreases the number of carnations imported by 400.

correct
The correct answer is: decreases the number of carnations imported by 200.
 Question 27 27. Refer to Figure 9-5. The amount of revenue collected by the government from the tariff is
Correct
Select one:
Mark 1.0 out of 1.0
a. $200.

b. $400.
c. $500.
d. $600.

correct
The correct answer is: $400.

Question 28 28. Refer to Figure 9-5. When a tariff is imposed in the market, domestic producers
Correct
Select one:
Mark 1.0 out of 1.0
a. gain by $100.
b. gain by $200.

c. gain by $300.
d. lose by $100.

correct
The correct answer is: gain by $300.

Question 29 29. Refer to Figure 9-5. The amount of deadweight loss caused by the tariff equals
Correct
Select one:
Mark 1.0 out of 1.0
a. $100.
b. $200.

c. $400.
d. $500.

correct
The correct answer is: $200.

Question 30 30. Refer to Figure 9-5. When the tariff is imposed, domestic consumers
Correct
Select one:
Mark 1.0 out of 1.0
a. lose by $500.
b. lose by $900.

c. gain by $500.
d. gain by $900.

correct
The correct answer is: lose by $900.

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