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11
Copyright © 2011 Pearson Education, Inc.
30) The above figure shows the U.S. market for flip-flops. With international trade, the United
States imports ________ flip-flops.
A) 300,000
B) 500,000
C) 700,000
D) 0 because the United States exports flip-flops
E) 400,000
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
31) The above figure shows the U.S. market for flip-flops. With international trade, U.S.
consumers buy ________ flip-flops and U.S. producers produce ________ flip-flops.
A) 500,000; 500,000
B) 300,000; 700,000
C) 500,000; 300,000
D) 700,000; 300,000
E) 700,000; 500,000
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
32) The above figure shows the U.S. market for flip-flops. With no international trade, the price
in the United States for flip-flops is ________. With international trade, the price in the United
States for flip-flops is ________.
A) $12; $14
B) $500; $300
C) $14; $12
D) $700; $300
E) $500; $700
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
12
Copyright © 2011 Pearson Education, Inc.
33) With no international trade, the U.S. price of wheat is lower than the world price of wheat.
This indicates that the United States ________ a comparative advantage in the production of
wheat and with international trade, the United States will ________ wheat.
A) has; export
B) has; not trade
C) has; import
D) does not have; export
E) might have; export
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: MR
AACSB: Reflective thinking
34) A country with a comparative advantage in the production of a good will ________
production of the good and ________.
A) decrease; import the good
B) increase; export the good
C) not change; import the good
D) increase; import the good
E) decrease; export the good
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: MR
AACSB: Reflective thinking
35) Airlines in other countries buy airplanes from Boeing because
A) it is illegal to produce airplanes in many other countries.
B) Boeing's prices are less than what the airlines would pay for planes built in their own country.
C) trade treaties require such purchases.
D) these nations must buy something from the United States.
E) None of the above answers is correct.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: SB
AACSB: Reflective thinking
13
Copyright © 2011 Pearson Education, Inc.
36) When a country exports a good because the world price is higher than the no-trade domestic
price, domestic purchases of the good ________ and domestic production of the good ________.
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
E) do not change; increases
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: SB
AACSB: Analytical reasoning
37) The table above has the domestic demand and domestic supply schedules for a good.
According to the table, the no-trade price of the good is
A) $4.
B) $6.
C) $8.
D) $10.
E) $2.
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: NAU
AACSB: Analytical reasoning
14
Copyright © 2011 Pearson Education, Inc.
38) The table above has the domestic demand and domestic supply schedules for a good. If the
world price of the good is $10, then according to the table
A) domestic production is higher before trade than after trade.
B) the country imports 16 units a day.
C) the country imports 6 units a day.
D) the country exports 6 units a day.
E) the country exports 22 units a day.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: NAU
AACSB: Analytical reasoning
39) According to the above table, the country will import the good if the world price is less than
________ and will export the good if the world price is more than ________.
A) $4; $4
B) $6; $6
C) $8; $4
D) $10; $10
E) $4; $8
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: NAU
AACSB: Analytical reasoning
15
Copyright © 2011 Pearson Education, Inc.
40) The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence
of international trade, cherry farmers would receive ________ per pound of cherries.
A) $0.50
B) $1.50
C) $2.50
D) $2.00
E) $1.00
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: JC
AACSB: Analytical reasoning
41) The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence
of international trade, how many pounds of cherries would U.S. farmers produce?
A) 200,000 pounds
B) 400,000 pounds
C) 600,000 pounds
D) 800,000 pounds
E) 0 pounds
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: JC
AACSB: Analytical reasoning
16
Copyright © 2011 Pearson Education, Inc.
42) The figure above shows the U.S. demand and U.S. supply curves for cherries. Suppose the
world price of cherries is $2 per pound. At this price, U.S. consumption of cherries will equal
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: JC
AACSB: Analytical reasoning
43) The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world
price of $2 per pound, the production of cherries in the United States will equal
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: JC
AACSB: Analytical reasoning
44) The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world
price of $2 per pound, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: JC
AACSB: Analytical reasoning
17
Copyright © 2011 Pearson Education, Inc.
45) The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world
price of $2 per pound, the total imports of cherries to the United States from other nations equals
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: MR
AACSB: Analytical reasoning
46) The above figure shows the U.S. market for wheat. When there no international trade, the
U.S. price of wheat is ________ per ton and the U.S. equilibrium quantity is ________ tons.
A) $14; 300,000
B) $14; 500,000
C) $16; 500,000
D) $16; 300,000
E) $16; 700,000
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
18
Copyright © 2011 Pearson Education, Inc.
47) The above figure shows the U.S. market for wheat. With international trade, the price of
wheat in the United States is ________ per ton and the United States ________ wheat.
A) $16; exports
B) $14; exports
C) $14; imports
D) $16; imports
E) $14; does not trade
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
48) The above figure shows the U.S. market for wheat. With international trade, the United
States exports ________ of wheat.
A) 300,000 tons
B) 500,000 tons
C) 700,000 tons
D) 400,000 tons
E) None of the above answers are correct because the United States imports wheat.
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
49) The above figure shows the U.S. market for wheat. With international trade, U.S. consumers
buy ________ tons of wheat and U.S. producers produce ________ tons of wheat.
A) 700,000; 300,000
B) 500,000; 500,000
C) 300,000; 500,000
D) 300,000; 700,000
E) 500,000; 700,000
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
19
Copyright © 2011 Pearson Education, Inc.
50) The above figure shows the U.S. market for wheat. With no international trade, the price of
wheat in the United States is ________ per ton. With international trade, the price of wheat in
the United States is ________ per ton.
A) $16; $14
B) $500; $300
C) $14; $16
D) $700; $300
E) $500; $700
Skill: Level 3: Using models
Section: Checkpoint 9.1
Author: KG
AACSB: Analytical reasoning
51) Goods and services that we buy from firms in other countries are called our
A) imports.
B) exports.
C) inputs.
D) raw materials.
E) obligations.
Skill: Level 1: Definition
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Reflective thinking
52) If the United States exports planes to Brazil and imports ethanol from Brazil, the price
received by U.S. producers of planes ________ and the price received by Brazilian producers of
ethanol ________.
A) does not change; does not change
B) rises; rises
C) rises; falls
D) falls; rises
E) falls; falls
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Analytical reasoning
20
Copyright © 2011 Pearson Education, Inc.
53) When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets and
the price Boeing receives is ________ than it could receive from an additional U.S. buyer.
A) lower than; lower
B) higher than; higher
C) lower than; higher
D) higher than; lower
E) the same as; higher
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Analytical reasoning
54) A nation will import a good if its no-trade, domestic
A) price is equal to the world price.
B) price is less than the world price.
C) price is greater than the world price.
D) quantity is less than the world quantity.
E) quantity is greater than the world quantity.
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Reflective thinking
55) When a good is imported, the domestic production of it ________ and the domestic
consumption of it ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Analytical reasoning
