Question 1

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then producer surplus in equilibrium is equal to ____________________ per year.

Accepted Answer

A)   $2500
B)   $5625
C)   $10,000
D)   $11,250
E)   $20,000F) C) and D)
G) A) and B)

Question 2

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30.In equilibrium,when this economy is closed to trade,domestic jeans production equals __________,and when this economy opens to trade,domestic jeans production equals ___________.

Accepted Answer

A)   32;36
B)   32;52
C)   52;82
D)   52;32
E)   32;82F) None of the above
G) C) and D)

Question 3

-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then producer surplus in equilibrium is equal to ____________________ per year.

Accepted Answer

A)   $2500
B)   $5000
C)   $10,000
D)   $11,250
E)   $20,000F) A) and B)
G) A) and C)

Question 4

The workings of the free market ensure that goods will be produced where the opportunity cost is the ____________ and traded to countries that ___________ have a comparative advantage in the good.

Accepted Answer

A)   highest;do
B)   highest;do not
C)   highest;may or may not
D)   lowest;do
E)   lowest;do notF) All of the above
G) C) and D)

Question 5

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . 
-Refer to the above table.At a price of $9.00,there will be

Accepted Answer

A)   imports of 200 units.
B)   exports of 200 units.
C)   exports of 100 units.
D)   imports of 100 units.
E)   imports of 400 units.F) B) and E)
G) All of the above

Question 6

-Refer to the diagram above,where S and D are the domestic supply and demand for a product.The world price of the product is $6.What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed,compared with the total revenue received by foreign producers when a $4 per unit tariff is paid?

Accepted Answer

A)   There would be no difference.
B)   There would be $80 more revenue with a quota than with a tariff.
C)   There would be $200 more revenue with a quota than with a tariff.
D)   There would be $120 more revenue with a tariff than with a quota.
E)   There would be $220 more revenue with a tariff than with a quota.F) B) and C)
G) A) and E)

Question 7

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . 
-Refer to the above table.At what price will there be imports?

Accepted Answer

A)   $6.00.
B)   $7.00.
C)   $8.00.
D)   $9.00.
E)   There is no price at which there will be imports.F) A) and B)
G) B) and C)

Question 8

-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then domestic production of oil equals __________ million barrels and domestic consumption of oil equals __________ million barrels.

Accepted Answer

A)   8;11
B)   11;11
C)   14;8
D)   8;14
E)   14;11F) A) and D)
G) A) and C)

Question 9

A closed economy is one that

Accepted Answer

A)   relies on a market system to allocate scarce resources.
B)   relies on central planning to allocate scarce resources.
C)   has a flexible exchange rate.
D)   trades with other countries.
E)   does not trade with other countries.F) A) and C)
G) B) and E)

Question 10

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . 
-Refer to the above table.At what price will exports be equal to 100 units?

Accepted Answer

A)   $9.00.
B)   $8.00.
C)   $7.00.
D)   $6.00.
E)   There is no price at which exports will be equal to 100 units.F) C) and D)
G) All of the above

Question 11

-Refer to the diagram above.If this country imposes an import quota of 500 pairs of shoes per year,then the price is ____________________ per pair,the quantity consumed domestically is ____________________ pairs per year,and total economic surplus is ____________________ per year.

Accepted Answer

A)   $20;1500;$20,000
B)   $15;1000;$20,000
C)   $15;1250;$21,250
D)   $15;1500;$25,000
E)   $10;500;$25,000F) C) and E)
G) B) and E)

Question 12

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then ____________________ are equal to ____________________ pairs of shoes per year.

Accepted Answer

A)   exports;0
B)   exports;500
C)   imports;0
D)   imports;500
E)   imports;1000F) B) and D)
G) None of the above

Question 13

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1+ 0.8P.Both demand (D) and supply (S) of soybeans are measured in millions of bushels.If the world price of soybeans equals $2 and this economy is open to trade,then this country will

Accepted Answer

A)   export 1 million bushels of soybeans.
B)   export 2 million bushels of soybeans.
C)   neither import nor export soybeans.
D)   import 1 million bushels of soybeans.
E)   import 2 million bushels of soybeans.F) A) and C)
G) B) and E)

Question 14

Quotas and tariffs are similar in that they both

Accepted Answer

A)   generate revenue for the government that imposes them.
B)   increase the prices of goods and services in the domestic market.
C)   increase the revenues of the firms importing the goods and services.
D)   harm domestic and foreign producers.
E)   harm domestic and foreign consumers.F) A) and D)
G) C) and D)

Question 15

If only two products are produced in an economy,wheat and wine,the opportunity cost of producing a bushel of wheat equals the

Accepted Answer

A)   gain in wine divided by the loss in wheat.
B)   loss in wheat divided by the gain in wine.
C)   opportunity cost of producing a bottle of wine.
D)   gain in wheat divided by the loss in wine.
E)   loss in wine divided by the gain in wheat.F) C) and D)
G) A) and E)

Question 16

-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then this economy will __________ million barrels of oil.

Accepted Answer

A)   export 6
B)   export 8
C)   export 10
D)   import 10
E)   import 6F) None of the above
G) A) and B)

Question 17

-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then ____________________ are equal to ____________________ pairs of shoes per year.

Accepted Answer

A)   exports;0
B)   exports;500
C)   exports;1000
D)   exports;1500
E)   imports;1000F) None of the above
G) A) and B)

Question 18

The supply of Canadian dollars in the foreign exchange market is an upward-sloping curve because,when the price of a dollar rises,

Accepted Answer

A)   more Canadians want to purchase foreign goods,services,and assets.
B)   fewer Canadians want to purchase foreign goods,services,and assets.
C)   more foreigners want to purchase foreign goods,services,and assets.
D)   fewer foreigners want to purchase Canadian goods,services,and assets.
E)   more foreigners want to purchase Canadian goods,services,and assets.F) B) and D)
G) A) and B)

Question 19

-If the economy in the diagram above is open to trade and the world price of oil is $15 per barrel,then domestic production of oil equals __________ million barrels and domestic consumption of oil equals __________ million barrels.

Accepted Answer

A)   6;16
B)   11;11
C)   14;8
D)   8;14
E)   16;6F) A) and D)
G) A) and E)

Question 20

If the world price is greater than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

Accepted Answer

A)   stop consuming
B)   stop producing
C)   be self-sufficient in
D)   become a net importer of
E)   become a net exporter ofF) B) and C)
G) None of the above

Exam 15: Income Distribution

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then are equal to pairs of shoes per year.

Correct Answer
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Correct Answer
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Quotas and tariffs are similar in that they both

Correct Answer
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-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then this economy will __________ million barrels of oil.

Correct Answer
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-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then producer surplus in equilibrium is equal to ____________________ per year.

Correct Answer
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-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then domestic production of oil equals million barrels and domestic consumption of oil equals million barrels.

Correct Answer
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The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At what price will there be imports?

Correct Answer
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The supply of Canadian dollars in the foreign exchange market is an upward-sloping curve because,when the price of a dollar rises,

Correct Answer
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A closed economy is one that

Correct Answer
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-Refer to the diagram above.If this country imposes an import quota of 500 pairs of shoes per year,then the price is per pair,the quantity consumed domestically is pairs per year,and total economic surplus is per year.

Correct Answer
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If only two products are produced in an economy,wheat and wine,the opportunity cost of producing a bushel of wheat equals the

Correct Answer
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-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then producer surplus in equilibrium is equal to ____________________ per year.

Correct Answer
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Correct Answer
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If the world price is greater than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

Correct Answer
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-If the economy in the diagram above is open to trade and the world price of oil is $15 per barrel,then domestic production of oil equals million barrels and domestic consumption of oil equals million barrels.

Correct Answer
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Correct Answer
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The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At what price will exports be equal to 100 units?

Correct Answer
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-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then are equal to pairs of shoes per year.

Correct Answer
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The workings of the free market ensure that goods will be produced where the opportunity cost is the __ and traded to countries that _ have a comparative advantage in the good.

Correct Answer
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The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At a price of $9.00,there will be

Correct Answer
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Exam 15: Income Distribution

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then ____________________ are equal to ____________________ pairs of shoes per year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Quotas and tariffs are similar in that they both

Correct AnswerverifiedShow Answer

-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then this economy will __________ million barrels of oil.

Correct AnswerverifiedShow Answer

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then producer surplus in equilibrium is equal to ____________________ per year.

Correct AnswerverifiedShow Answer

-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then domestic production of oil equals __________ million barrels and domestic consumption of oil equals __________ million barrels.

Correct AnswerverifiedShow Answer

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At what price will there be imports?

Correct AnswerverifiedShow Answer

The supply of Canadian dollars in the foreign exchange market is an upward-sloping curve because,when the price of a dollar rises,

Correct AnswerverifiedShow Answer

A closed economy is one that

Correct AnswerverifiedShow Answer

-Refer to the diagram above.If this country imposes an import quota of 500 pairs of shoes per year,then the price is ____________________ per pair,the quantity consumed domestically is ____________________ pairs per year,and total economic surplus is ____________________ per year.

Correct AnswerverifiedShow Answer

If only two products are produced in an economy,wheat and wine,the opportunity cost of producing a bushel of wheat equals the

Correct AnswerverifiedShow Answer

-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then producer surplus in equilibrium is equal to ____________________ per year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the world price is greater than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

Correct AnswerverifiedShow Answer

-If the economy in the diagram above is open to trade and the world price of oil is $15 per barrel,then domestic production of oil equals __________ million barrels and domestic consumption of oil equals __________ million barrels.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At what price will exports be equal to 100 units?

Correct AnswerverifiedShow Answer

-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then ____________________ are equal to ____________________ pairs of shoes per year.

Correct AnswerverifiedShow Answer

The workings of the free market ensure that goods will be produced where the opportunity cost is the ____________ and traded to countries that ___________ have a comparative advantage in the good.

Correct AnswerverifiedShow Answer

The following table concerns Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd) ,and column 3 shows the domestic quantity supplied (Qs) . -Refer to the above table.At a price of $9.00,there will be

Correct AnswerverifiedShow Answer

-Refer to the diagram above.If this country imposes a tariff equal to $5 per pair of shoes,then are equal to pairs of shoes per year.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then domestic production of oil equals million barrels and domestic consumption of oil equals million barrels.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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-Refer to the diagram above.If this country imposes an import quota of 500 pairs of shoes per year,then the price is per pair,the quantity consumed domestically is pairs per year,and total economic surplus is per year.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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-If the economy in the diagram above is open to trade and the world price of oil is $15 per barrel,then domestic production of oil equals million barrels and domestic consumption of oil equals million barrels.

Correct Answer
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Correct Answer
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Correct Answer
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-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then are equal to pairs of shoes per year.

Correct Answer
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The workings of the free market ensure that goods will be produced where the opportunity cost is the __ and traded to countries that _ have a comparative advantage in the good.

Correct Answer
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Correct Answer
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