30) The above igure shows the U.S. market for lip-lops. With international trade, the
United States imports ________ lip-lops.
A) 300,000
B) 500,000
C) 700,000
D) 0 because the United States exports lip-lops
E) 400,000
Skill: Level 3: Using models
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
31) The above igure shows the U.S. market for lip-lops. With international trade, U.S.
consumers buy ________ lip-lops and U.S. producers produce ________ lip-lops.
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 18.1
Status: Old
AACSB: Analytical thinking
32) The above igure shows the U.S. market for lip-lops. With no international trade, the
price in the United States for lip-lops is ________. With international trade, the price in the
United States for lip-lops is ________.
A) $12; $14
B) $500; $300
C) $14; $12
D) $700; $300
E) $500; $700
Skill: Level 3: Using models
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
11
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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical 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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical 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 18.1
Status: Old
AACSB: Analytical thinking
12
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 18.1
Status: Old
AACSB: Analytical thinking
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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
13
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 18.1
Status: Old
AACSB: Analytical thinking
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 18.1
Status: Old
AACSB: Analytical thinking
14
40) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
41) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
15
42) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
43) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
44) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
16
45) The igure 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 18.1
Status: Old
AACSB: Analytical thinking
46) The above igure 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 18.1
Status: Old
AACSB: Analytical thinking
17
47) The above igure 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 18.1
Status: Old
AACSB: Analytical thinking
48) The above igure 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 is correct because the United States imports wheat.
Skill: Level 3: Using models
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
49) The above igure 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 18.1
Status: Old
AACSB: Analytical thinking
18
50) The above igure 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 18.1
Status: Old
AACSB: Analytical thinking
51) International trade beneits
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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
52) 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 depend on which nation gets to keep the total revenue from the sale.
Skill: Level 2: Using deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
19
53) 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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
54) 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 proit.
Skill: Level 2: Using deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
55) 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 deinitions
Section: Checkpoint 18.1
Status: Old
AACSB: Analytical thinking
20