Please consider the image. An economist would say that most domestic producers

do not have a comparative advantage at producing this good.

The model that we have learned suggests that a country imports what domestic producers can

produce at relatively high cost.

Please consider the image. The distance from QD to QS measures the

quantity of this good exported from this country.

The model that we have learned suggests a country exports _________.

what domestic producers can produce at relatively low cost.

Please consider the diagram. With free trade domestic consumer surplus is equal to

the sum of the areas of A, B, and D.

When domestic producers are able to export a good at the prevailing world price,

domestic producer surplus tends to rise.

Countries both export and import. The model that we learned predicts that

both exports and imports increase overall welfare.

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International Trade with Supply and Demand

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Questions 12

Answers

1
Please consider the image. An economist would say that most domestic producers
do not have a comparative advantage at producing this good.
have a competitive advantage at producing this good.
are too lazy and need to work harder to earn more profit.
have a comparative advantage at producing this good.
2
Please consider the diagram. With free trade this country will tend to ___________ this good.
neither export nor import
export
import
3
The model that we have learned suggests that a country imports what domestic producers can
produce at relatively high cost.
produce at relatively low cost.
not produce at all.
4
Please consider the image. The distance from QD to QS measures the
quantity of this good imported into this country.
quantity of this good exported from this country.
dollar value of this good exported from this country.
dollar value of this good imported into this county.
5
The model that we have learned suggests a country exports _________.
what the government wants to export.
the same amount that it imports.
what domestic producers produce at relatively high cost.
what domestic producers can produce at relatively low cost.
6
Please consider the diagram. With free trade domestic consumer surplus is equal to
triangle A.
the sum of the areas of A, B, and D.
the sum of the areas of A, B, and C.
triangle C.
7
When domestic producers are able to export a good at the prevailing world price,
domestic consumer surplus tends to rise.
domestic producer surplus tends to rise.
8
With free trade domestic production of this good is equal to
P*.
Q*
QD.
QS.
9
Countries both export and import. The model that we learned predicts that
exports increase overall welfare while imports lower it.
both exports and imports increase overall welfare.
international trade lowers overall welfare of residents.
imports increase overall welfare while exports lower it.
10
Please consider the image. If this country engages in free trade, consumer surplus equals
the area of triangle A.
the area of triangle F.
the sum of the areas of rectangle B and triangle C.
the area of rectangle B.
11
Please consider the image. This country tends to ______________ this good.
export
neither export nor import
import
12
Please consider the image. If this country engages in free trade, the area of triangle C is
part of the domestic government's tax revenue.
part of the deadweight loss.
part of producer surplus.
part of consumer surplus.

International Trade with Supply and Demand Flashcards | StudBud