Question : 9.2   Winners, Losers, and Net Gains from Trades 1) International trade : 1241675

 

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.

 

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

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.

 

4) 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.

 

5) 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.

6) 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

 

7) 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

 

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; total

E) total; consumer

9) 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

 

10) 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

 

11) 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.

12) If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________ producer surplus, and ________ total surplus.

A) import; increase; decrease; increase

B) import; decrease; increase; increase

C) export; increase; decrease; increase

D) export; decrease; increase; increase

E) export; decrease; increase; decrease