Question :
Multiple Choice – Section 02b: The Winners and Losers from : 1262622
Multiple Choice – Section 02b: The Winners and Losers from Trade
Figure9-20
ThefigureillustratesthemarketforriceinVietnam.
1.RefertoFigure9-20.Fromthefigureitisapparentthat
a.Vietnamwillexperienceashortageofriceiftradeisnotallowed.
b.Vietnamwillexperienceasurplusofriceiftradeisnotallowed.
c.Vietnamhasacomparativeadvantageinproducingrice,relativetotherestoftheworld.
d.foreigncountrieshaveacomparativeadvantageinproducingrice,relativetoVietnam.
2.RefertoFigure9-20.Fromthefigureitisapparentthat
a.Vietnamhasacomparativeadvantageinproducingrice,relativetotherestoftheworld.
b.foreigncountrieshaveacomparativeadvantageinproducingrice,relativetoVietnam.
c.Vietnamhasanabsoluteadvantageinproducingrice,relativetotherestoftheworld.
d.foreigncountrieshaveanabsoluteadvantageinproducingrice,relativetoVietnam.
3.RefertoFigure9-20.Intheabsenceoftrade,totalsurplusintheVietnamesericemarketamountsto
a.9,250.
b.10,000.
c.12,000.
d.13,000.
4.RefertoFigure9-20.GiventhatVietnamisasmallcountry,itisapparentfromthefigurethat
a.Vietnamwillexportriceiftradeisallowed.
b.Vietnamwillimportriceiftradeisallowed.
c.Vietnamhasnothingtogaineitherbyimportingorexportingrice.
d.theworldpricewillfallifVietnambeginstoallowitscitizenstotradewithothercountries.
5.RefertoFigure9-20.Withtrade,Vietnamwill
a.export1,000unitsofrice.
b.export1,500unitsofrice.
c.import1,000unitsofrice.
d.import1,500unitsofrice.
6.RefertoFigure9-20.Withtrade,Vietnamesericeproducerswillproduce
a.2,000unitsofriceandtheirproducersurpluswillbe4,000.
b.2,000unitsofriceandtheirproducersurpluswillbe7,500.
c.3,000unitsofriceandtheirproducersurpluswillbe7,500.
d.3,000unitsofriceandtheirproducersurpluswillbe9,000.
7.RefertoFigure9-20.Vietnam’sgainsfromtradeinriceamountto
a.750.
b.1,000.
c.1,250.
d.1,500.
8.RefertoScenario9-2.IfBoxlandprohibitsinternationaltradeincardboard,thentheequilibriumpriceofatonofcardboardis
a.$36andtheequilibriumquantityofcardboardis74tons.
b.$44andtheequilibriumquantityofcardboardis88tons.
c.$52andtheequilibriumquantityofcardboardis96tons.
d.$60andtheequilibriumquantityofcardboardis100tons.
9.RefertoScenario9-2.Supposetheworldpriceofcardboardis$45.Then, ifBoxlandgoes fromprohibitinginternationaltradeincardboardtoallowinginternationaltradeincardboard,
a.domesticproducersofcardboardbecomebetteroffanddomesticconsumersofcardboardbecomebetteroff.
b.domesticproducersofcardboardbecomebetteroffanddomesticconsumersofcardboardbecomeworseoff.
c.domesticproducersofcardboardbecomeworseoffanddomesticconsumersofcardboardbecomebetteroff.
d.domesticproducersofcardboardbecomeworseoffanddomesticconsumersofcardboardbecomeworseoff.
10.RefertoScenario9-2.Supposetheworldpriceofcardboardis$45andinternationaltradeisallowed.Then
a.110tonsofcardboardandBoxland’sproducerssupply75tonsofcardboard.
b.110tonsofcardboardandBoxland’sproducerssupply96tonsofcardboard.
c.96tonsofcardboardandBoxland’sproducerssupply75tonsofcardboard.
d.96tonsofcardboardandBoxland’sproducerssupply96tonsofcardboard.