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21
Copyright © 2011 Pearson Education, Inc.
56) The United States exports a good if its no-trade U.S. price is ________ its world price. With
international trade, U.S. production of the good ________ compared to the level of no-trade
production.
A) higher than; does not change
B) higher than; increases
C) lower than; increases
D) the same as; increases
E) the same as; does not change
Skill: Level 2: Using definitions
Section: Checkpoint 9.1
Author: STUDY GUIDE
AACSB: Reflective thinking
9.2 Winners, Losers, and Net Gains from Trades
1) International trade benefits
A) only the exporter.
B) only the importer.
C) both the exporter and the importer.
D) neither the exporter nor the importer.
E) the exporter at all times and sometimes also the importer.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: SB
AACSB: Reflective thinking
2) Who gains from international trade?
A) only the exporting nation
B) only the importing nation
C) both the importing and the exporting nations
D) neither the importing nor the exporting nations
E) The gains depends on which nation gets to keep the total revenue from the sale
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TS
AACSB: Reflective thinking
22
Copyright © 2011 Pearson Education, Inc.
3) Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-
shirts because
A) they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the
United States.
B) they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the
United States.
C) they must buy some goods or services produced in Asia.
D) by so doing they are helping preserve U.S. jobs producing t-shirts.
E) they know that the United States has a comparative advantage in wearing t-shirts.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: JC
AACSB: Reflective thinking
4) Most t-shirts bought by Americans are made in Asia. Producers in Asia making t-shirts trade
with America because they
A) receive a lower price than they would receive from another buyer.
B) receive a higher price than they would receive from another buyer.
C) must export something to the United States.
D) cannot produce enough t-shirts for their own domestic consumption.
E) cannot lower their price any lower and still make a profit.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: JC
AACSB: Reflective thinking
5) After a nation starts importing a good from overseas, the domestic price of the good
A) falls.
B) stays the same.
C) rises.
D) might change, but more information about what the country exports is needed to determine if
the price rises, falls, or does not change.
E) might change, but more information about what else the country imports is needed to
determine if the price rises, falls, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Reflective thinking
23
Copyright © 2011 Pearson Education, Inc.
6) When a nation starts importing a good or service, domestic employment in that industry
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what else the country imports is needed to
determine if employment increases, decreases, or does not change.
E) might change, but more information about what the country exports is needed to determine if
employment increases, decreases, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Reflective thinking
7) When a nation imports a good or service, the nation's consumer surplus ________, its
producer surplus ________, and its total surplus ________.
A) increases; decreases; increases
B) increases; decreases; decreases
C) increases; increases; increases
D) decreases; decreases; decreases
E) decreases; decreases; increases
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
8) When a nation imports a good, its ________ surplus decreases and its ________ surplus
increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
24
Copyright © 2011 Pearson Education, Inc.
9) When a nation imports a good, its ________ surplus decreases and its ________ surplus
increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; total
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
10) When a nation imports a good, its ________ surplus increases and its ________ surplus
increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; total
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
11) When a nation imports a good, its consumer surplus ________, and its producer surplus
________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
25
Copyright © 2011 Pearson Education, Inc.
12) When a nation starts importing a good or service, the domestic production of the good or
service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country exports is needed to determine if
production increases, decreases, or does not change.
E) might change, but more information about what else the country imports is needed to
determine if production increases, decreases, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Analytical reasoning
13) The above figure shows the U.S. market for chocolate. With no international trade,
consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
26
Copyright © 2011 Pearson Education, Inc.
14) The above figure shows the U.S. market for chocolate. With international trade, consumer
surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
15) The above figure shows the U.S. market for chocolate. With no international trade, producer
surplus is equal to
A) area A + area B + area C + area D.
B) area B + area C + area D + area E.
C) area B + area C + area D.
D) area C + area D.
E) area E.
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
16) The above figure shows the U.S. market for chocolate. With international trade, the gain in
total surplus is equal to
A) area B.
B) area A + area B + area C + area D.
C) area B + area C + area D + area E.
D) area C + area D.
E) area B + area C + area D.
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
27
Copyright © 2011 Pearson Education, Inc.
17) The above figure shows the U.S. market for chocolate. With no international trade,
consumer surplus is equal to ________ and producer surplus is equal to
A) area A + area B + area C + area D; area E.
B) area B + area C + area D; area A + area E.
C) area A; area E.
D) area C + area D; area B + area E.
E) area E; area A + area B + area C + area D.
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
18) The above figure shows the U.S. market for chocolate. With international trade, ________ is
the transfer of surplus from producers to consumers.
A) area B +area C + area D
B) area B
C) area C + area D
D) area A
E) area E
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
19) When a nation exports a good or service in which it has a comparative advantage,
employment in that industry
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what else the country exports is needed to
determine if employment increases, decreases, or does not change.
E) might change, but more information about what the country imports is needed to determine if
employment increases, decreases, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Reflective thinking
28
Copyright © 2011 Pearson Education, Inc.
20) When a nation exports a good or service in which it has a comparative advantage, production
of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country imports is needed to determine if
production increases, decreases, or does not change.
E) might change, but more information about what else the country exports is needed to
determine if production increases, decreases, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Reflective thinking
21) When a nation exports a good or service, employment in that industry
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what else the country exports is needed to
determine if employment increases, decreases, or does not change.
E) might change, but more information about what the country imports is needed to determine if
employment increases, decreases, or does not change.
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: TPS
AACSB: Reflective thinking
22) When a nation exports a good, its consumer surplus ________, and its producer surplus
________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
29
Copyright © 2011 Pearson Education, Inc.
23) When a nation exports a good, its ________ surplus decreases and its ________ surplus
increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
24) When a nation exports a good, its ________ surplus decreases and its ________ surplus
increases.
A) consumer; total
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
25) When a nation exports a good, its ________ surplus increases and its ________ surplus
increases.
A) consumer; total
B) consumer; consumer
C) producer; producer
D) producer; total
E) total; consumer
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
30
Copyright © 2011 Pearson Education, Inc.
26) When a nation exports a good or service, the nation's consumer surplus ________, its
producer surplus ________, and its total surplus ________.
A) increases; decreases; increases
B) increases; decreases; decreases
C) increases; increases; increases
D) decreases; decreases; decreases
E) decreases; increases; increases
Skill: Level 2: Using definitions
Section: Checkpoint 9.2
Author: MR
AACSB: Analytical reasoning
27) The above figure shows the U.S. market for wheat. When there is no international trade,
consumer surplus is equal to ________.
A) area A + area B + area C
B) area A
C) area E + area F
D) area B + area C + area D
E) area A + area B + area C + area D
Skill: Level 3: Using models
Section: Checkpoint 9.2
Author: KG
AACSB: Analytical reasoning
