lOMoARcPSD|1141657
Multiple Choice (1 point each)
Identify the choice that best completes the statement or answers the question.
_d 1. The nation of Pineland forbids international trade. In Pineland, you can
buy 1 pound of fish for 2 pounds of pineapples. In other countries, you can buy 1
pound of fish for 1.5 pounds of pineapples.
These facts indicate that
a. Pineland has a comparative advantage, relative to other countries, in producing
fish.
b. other countries have a comparative advantage, relative to
, Pineland, in producing pineapples.
c. the price of pineapples in Pineland exceeds the world price of pineapples.
d. if Pineland were to allow trade, it would import fish.
_d 2. The price of sugar that prevails in international markets is called the
a. export price of sugar.
b. import price of sugar.
c. comparative-advantage price of sugar.
d. world price of sugar.
a 3. If a country allows trade and, for a certain good, the domestic price
without trade is lower than the world price,
a. the country will be an exporter of the good.
b. the country will be an importer of the good.
c. the country will be neither an exporter nor an importer of the good.
d. Additional information is needed about demand to determine whether
the country will be an exporter of the good, an importer of the good,
or neither.
c 4. A tariff
, lOMoARcPSD|1141657
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
a. lowers the domestic price of the exported good below the world price.
b. keeps the domestic price of the exported good the same as the world price.
c. raises the domestic price of the imported good above the world price.
d. lowers the domestic price of the imported good below the world price.
Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity
and P represents price.
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
, lOMoARcPSD|1141657
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
_b 5. When a country that imported a particular good abandons a free-trade
policy and adopts a no- trade policy,
a. producer surplus increases and total surplus increases in the market for that good.
b. producer surplus increases and total surplus decreases in the market for that good.
c. producer surplus decreases and total surplus increases in the market for that good.
d. producer surplus decreases and total surplus decreases in the market for that good.
Figure 9-1
The figure illustrates the market for wool in Scotland.
Price 50 B
75 D
45
70
40
65
35 C
60 A
30
55
25
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
Multiple Choice (1 point each)
Identify the choice that best completes the statement or answers the question.
_d 1. The nation of Pineland forbids international trade. In Pineland, you can
buy 1 pound of fish for 2 pounds of pineapples. In other countries, you can buy 1
pound of fish for 1.5 pounds of pineapples.
These facts indicate that
a. Pineland has a comparative advantage, relative to other countries, in producing
fish.
b. other countries have a comparative advantage, relative to
, Pineland, in producing pineapples.
c. the price of pineapples in Pineland exceeds the world price of pineapples.
d. if Pineland were to allow trade, it would import fish.
_d 2. The price of sugar that prevails in international markets is called the
a. export price of sugar.
b. import price of sugar.
c. comparative-advantage price of sugar.
d. world price of sugar.
a 3. If a country allows trade and, for a certain good, the domestic price
without trade is lower than the world price,
a. the country will be an exporter of the good.
b. the country will be an importer of the good.
c. the country will be neither an exporter nor an importer of the good.
d. Additional information is needed about demand to determine whether
the country will be an exporter of the good, an importer of the good,
or neither.
c 4. A tariff
, lOMoARcPSD|1141657
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
a. lowers the domestic price of the exported good below the world price.
b. keeps the domestic price of the exported good the same as the world price.
c. raises the domestic price of the imported good above the world price.
d. lowers the domestic price of the imported good below the world price.
Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity
and P represents price.
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
, lOMoARcPSD|1141657
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
_b 5. When a country that imported a particular good abandons a free-trade
policy and adopts a no- trade policy,
a. producer surplus increases and total surplus increases in the market for that good.
b. producer surplus increases and total surplus decreases in the market for that good.
c. producer surplus decreases and total surplus increases in the market for that good.
d. producer surplus decreases and total surplus decreases in the market for that good.
Figure 9-1
The figure illustrates the market for wool in Scotland.
Price 50 B
75 D
45
70
40
65
35 C
60 A
30
55
25
University Of California|Econ-IS 13 Homework
2 QUESTIONS AND ANSWERS 100%
CORRECTLY/VERIFIED. LATEST
SOLUTION RATED A+
