Question Part 1 of 1 – 50.0 Points

04 Jun Question Part 1 of 1 – 50.0 Points

Question
Part 1 of 1 – 50.0 Points

Question 1 of 19 1.0 Points

When trade opens up, all consumers are made better off.

True

False

Question 2 of 19 1.0 Points

In the simple trade model, countries with identical pre-trade prices for a good have no incentive to trade in that good.

True

False

Question 3 of 19 1.0 Points

If one producer is made better off by trade, then all producers in the same country must be made better off by trade.

True

False

Question 4 of 19 1.0 Points

At the equilibrium trade price between two countries, the excess supply of the good in one country must equal the excess demand for the good in the other country.

True

False

Question 5 of 19 1.0 Points

There ain’t no such thing as a free lunch, but there is such a thing as free trade.

True

False

Question 6 of 19 2.0 Points

After trade has opened up, the gains that trade brings to consumers of the imported goods are, in absolute value,

A. larger than the losses to domestic producers of that good.

B. smaller than the losses to domestic producers of that good.

C. exactly equal to the losses to domestic producers of that good.

D. immeasurable.

Question 7 of 19 2.0 Points

Which of the following is not likely to promote free trade in lumber between countries?

A. Pre-trade lumber prices that are equal across countries.

B. Profit-seeking lumber arbitrageurs.

C. Lumber supply differences between countries.

D. Lumber demand differences between countries.

Question 8 of 19 2.0 Points

After trade, the distribution of income in a country changes as

A. import-competing producers lose while producers of the exportable good gain.

B. the nation as a whole gains while individuals lose.

C. consumers lose while producers gain.

D. income flows from consumers to producers.

Question 9 of 19 2.0 Points

If export supply is less price elastic than import demand, then the

A. importing country will not want to trade.

B. exporting country will not want to trade.

C. exporting country will receive the largest share of the gains from trade.

D. importing country will receive the largest share of the gains from trade.

Question 10 of 19 2.0 Points

Referring to figure above, at a price of $70, the amount of consumer surplus is:

A. $6,000.

B. $8,000.

C. $15,000.

D. $30,000.