Economics Chapter 8 Consumer Surplus Falls Producer Surplus Rises And

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137. Multiple Choice: Figure: The Market for MP3 Players Re…

Question Figure: The Market for MP3 Players

Reference: Ref 8-13

(Figure: The Market for MP3 Players) Look at the figure The Market for MP3

Players. In the market for MP3 players, if the world price equals $100 and there is

free trade, this country:

138. Multiple Choice: Figure: The Market for MP3 Players Re…

Question

Points: 0

Figure: The Market for MP3 Players

Reference: Ref 8-13

(Figure: The Market for MP3 Players) Look at the figure The Market for MP3

Players. In the market for MP3 players, if the world price equals $100 and there is

free trade, consumer surplus ________ and producer surplus ________ compared to

autarky.

139. Multiple Choice: Figure: The Market for MP3 Players Re…

Question

Points: 0

Figure: The Market for MP3 Players

Reference: Ref 8-13

(Figure: The Market for MP3 Players) Look at the figure The Market for MP3

Players. In the market for MP3 players, if the world price equals $100 and there is

free trade, what is the gain in consumer surplus?

140. Multiple Choice: Figure: The Market for MP3 Players Re…

Question Figure: The Market for MP3 Players

Reference: Ref 8-13

(Figure: The Market for MP3 Players) Look at the figure The Market for MP3

Players. In the market for MP3 players, if the world price equals $100 and there is

free trade, which of the following occurs?

Points: 0

Answer There is a gain in producer surplus equal to $1.5 million.

141. Multiple Choice: Figure: The Market for Thumb Drives R...

Question Figure: The Market for Thumb Drives

Reference: Ref 8-14

(Figure: The Market for Thumb Drives) Look at the figure The Market for Thumb

Drives. Consumer surplus when free trade exists equals the area or areas ________

in the graph.

Answer A

142. Multiple Choice: Figure: The Market for Thumb Drives R...

Question

Points: 0

Figure: The Market for Thumb Drives

Reference: Ref 8-14

(Figure: The Market for Thumb Drives) Look at the figure The Market for Thumb

Drives. Producer surplus when free trade exists equals the area or areas ________

in the graph.

Answer B + C

143. Multiple Choice: Figure: The Market for Thumb Drives R...

Question Figure: The Market for Thumb Drives

Reference: Ref 8-14

(Figure: The Market for Thumb Drives) Look at the figure The Market for Thumb

Drives. The loss of producer surplus when free trade exists equals the area or areas

________ in the graph.

Points: 0

144. Multiple Choice: Figure: The Domestic Supply and Deman…

Question Figure: The Domestic Supply and Demand for SUVs in the United States

Reference: Ref 8-15

(Figure: The Domestic Supply and Demand for SUVs in the United States) Look at

the figure The Domestic Supply and Demand for SUVs in the United States.

Suppose the world price equals $50,000 and there is free trade. The United States

would ________ SUVs.

145. Multiple Choice: Figure: The Domestic Supply and Deman…

Question

Points: 0

Figure: The Domestic Supply and Demand for SUVs in the United States

Reference: Ref 8-15

(Figure: The Domestic Supply and Demand for SUVs in the United States) Look at

the figure The Domestic Supply and Demand for SUVs in the United States.

Suppose the world price equals $50,000 and there is free trade. In the United

States, consumer surplus would ________ and producer surplus would ________

with free trade.

146. Multiple Choice: Figure: The Domestic Supply and Deman…

Question

Points: 0

Figure: The Domestic Supply and Demand for SUVs in the United States

Reference: Ref 8-15

(Figure: The Domestic Supply and Demand for SUVs in the United States) Look at

the figure The Domestic Supply and Demand for SUVs in the United States.

Suppose the world price equals $50,000 and there is free trade. Calculate the loss of

consumer surplus when there is free trade.

147. Multiple Choice: Figure: The Domestic Market for Rice ...

Question

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Figure: The Domestic Market for Rice

Reference: Ref 8-16

(Figure: The Domestic Market for Rice) Look at the figure The Domestic Market for

Rice. Before international trade, consumer surplus is equal to the area or areas:

148. Multiple Choice: Figure: The Domestic Market for Rice ...

Question Figure: The Domestic Market for Rice

Reference: Ref 8-16

(Figure: Domestic Market for Rice) Look at the figure The Domestic Market for Rice.

After international trade, this nation will ________ a quantity of rice equal to

________.

Points: 0

149. Multiple Choice: If a country‘s price for wood furnitu…

Question If a country‘s price for wood furniture in the absence of trade is lower than the price

with trade, the country will likely:

150. Multiple Choice: If a country‘s price in the absence o...

Question If a country‘s price in the absence of trade is lower than the price with trade, then the

domestic quantity supplied with trade is ________ the domestic quantity demanded.

151. Multiple Choice: If a country has the comparative adva...

Question If a country has the comparative advantage in producing cloth, we would predict that

in the market for cloth, the autarky price would be ________ the world price and the

country would choose to________ cloth.

152. Multiple Choice: If a country has the comparative adva...

Points: 0

Question If a country has the comparative advantage in producing wooden furniture, then with

free trade:

Answer the country will import wooden furniture.

153. Multiple Choice: Assume an economy moves from autarky …

Question Assume an economy moves from autarky to free international trade. Which of the

following statements is true about the export sector?

Answer Consumer and producer surplus both rise, and the economy as a whole gains.

154. Multiple Choice: Figure: The Market for Tea in Sri Lan...

Question

Points: 0

Figure: The Market for Tea in Sri Lanka

Reference: Ref 8-17

(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri

Lanka. In autarky, the price of tea in Sri Lanka is P1. Consumer surplus equals

________ and producer surplus equals ________.

Answer F + G + H + I; J + K

155. Multiple Choice: Figure: The Market for Tea in Sri Lan...

Question

Points: 0

Figure: The Market for Tea in Sri Lanka

Reference: Ref 8-17

(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri

Lanka. In autarky, the price of tea in Sri Lanka is P1. When the economy is opened

to trade, the price rises to PW. Sri Lanka will ________ tea and the volume of trade

will equal ________.

Answer import; QT – CT

156. Multiple Choice: Figure: The Market for Tea in Sri Lan...

Question

Points: 0

Figure: The Market for Tea in Sri Lanka

Reference: Ref 8-17

(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri

Lanka. In autarky, the price of tea in Sri Lanka is P1. When the economy is opened

to trade, the price rises to PW and consumer surplus will ________ to ________.

rise; G + H + I

157. Multiple Choice: Figure: The Market for Tea in Sri Lan...

Question

Points: 0

Figure: The Market for Tea in Sri Lanka

Reference: Ref 8-17

(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri

Lanka. In autarky, the price of tea in Sri Lanka is P1. When the economy is opened

to trade, the price rises to PW and producer surplus will ________ to ________.

158. Multiple Choice: Figure: The Market for Tea in Sri Lan...

Question

Points: 0

Figure: The Market for Tea in Sri Lanka

Reference: Ref 8-17

(Figure: The Market for Tea in Sri Lanka) Look at the figure The Market for Tea in Sri

Lanka. In autarky, the price of tea in Sri Lanka is P1. When the economy is opened

to trade, the price rises to PW and the change in total surplus is:

159. Multiple Choice: When an economy moves from autarky to...

Question When an economy moves from autarky to free international trade, for industries in

the export sector:

Answer consumer and producer surplus both rise and the economy as a whole gains.

160. Multiple Choice: Figure: The Market for Computers Refe…

Question

Points: 0

Figure: The Market for Computers

Reference: Ref 8-18

(Figure: The Market for Computers) Look at the figure The Market for Computers. In

the figure, consumer surplus without international trade would be area or areas:

161. Multiple Choice: Figure: The Market for Computers Refe…

Question Figure: The Market for Computers

Reference: Ref 8-18

(Figure: The Market for Computers) Look at the figure The Market for Computers. In

the figure, consumer surplus with international trade would be area or areas:

Answer W + X + Y.

Points: 0

162. Multiple Choice: Figure: The Market for Computers Refe…

Question Figure: The Market for Computers

Reference: Ref 8-18

(Figure: The Market for Computers) Look at the figure The Market for Computers. In

the figure, producer surplus without international trade would be area or areas:

163. Multiple Choice: Figure: The Market for Computers Refe…

Question

Points: 0

Figure: The Market for Computers

Reference: Ref 8-18

(Figure: The Market for Computers) Look at the figure The Market for Computers. In

the figure, producer surplus with international trade would be area or areas:

164. Multiple Choice: If a nation exports a good when the e…

Question If a nation exports a good when the economy is opened to trade, the domestic price

of the good will ________ and domestic consumption will ________.

Answer rise; rise

165. Multiple Choice: The effect of international trade on …

Question The effect of international trade on U.S. factor markets is to:

Points: 0

166. Multiple Choice: Since the United States imports a lar...

Question Since the United States imports a large quantity of textiles from Asia, the overall

wages of U.S. textile workers has ________, while the price of textiles in the United

States has ________.

167. Multiple Choice: If labor is abundant in South Africa …

Question If labor is abundant in South Africa but capital is scarce, when South Africa opens to

trade:

168. Multiple Choice: If labor is scarce in Sri Lanka but c…

Question If labor is scarce in Sri Lanka but capital is abundant, when Sri Lanka opens to

trade:

169. Multiple Choice: When a domestic country exports goods...

Question When a domestic country exports goods to and imports goods from a foreign

country, in the short run:

Points: 0