If a country has a trade surplus of $60 billion, which of the following can be true? OA. The country's exports are $160 billion, and its imports are $60 billion. OB. The country's exports are $120 billion, and its imports are $180 billion. OC. The country's exports are $110 billion, and its imports are $190 billion. OD. The country's exports are $180 billion, and its imports are $120 billion.

Question 02. In terms of welfare, what is a difference between a tariff imposed by a large country and a tariff imposed by a small country? A. A tariff imposed by a large country has no deadweight consumption and production losses. B. A tariff imposed by a large country has a terms-of-trade effect. C. A tariff imposed by a small country has a terms-of-trade effect. D. A tariff imposed by a large country has no deadweight consumption loss. Question 03. The small nation of Endor currently produces 100,000 board feet of lumber at $600 per 1,000 board feet. Then it begins to trade at the world price of $500 per 1,000 board feet. As a result of trade, Endor's production falls to 50,000 board feet and its consumption increases to 200,000 board feet. What is Endor's total gain in consumer surplus once it begins to trade? A. $10,000 B. $15,000 C. $100,000 D. $150,000

When Americans start exporting more, in the short run we tend to see the price level and equilibrium output O fall; fall O rise; fall O rise; rise Ofall: rise

12. If the free trade price is lIP and this country imposes a trade tariff of $3, what will be the resulting net welfare loss to the economy? a)$3 b)$27 C)$13.5 d)$40.5 e)$9 13. if the free trade price is IP and this country imposes an import quota of 6 units, what will be the welfare loss to this economy?    a)$3 b)$27 c)$13.5 d)$40.5 e)$18

1. Notice how U.S. imports rose at roughly the same rate asthose of other countries until the 1970s. What accounts forthe acceleration of U.S. imports thereafter? 2. China’s exports rose spectacularly after the 1990s. Germanyincreased its exports in this period dramatically as well. Whatevidence do you see here for increasing competition for theUnited States in a globalizing economy?

10 In today's world markets, China tends to rely primarily on exports of () A. agricultural products. B. primary products. C. mineral products. D. manufactured products.

PRICE Po P₁ A B C OCB+C+D. Od.A+B+D. D Domestic Supply World Price Domestic Demand QUANTITY Refer to Figure 9-5. Consumer surplus in this market after trade is O a. C+ B. O b. A.

Q26 Consider two countries that can produce rice and other products. If neither country has an absolute advantage in the production of rice, ... a. There is no possibility that either country will import rice from the other. b. The opportunity cost of producing rice must be identical in the two countries. c. Rice will still be traded as long as one of the countries has a comparative advantage in its production. d. Neither country can possibly have a comparative advantage in the production of rice. e. Then rice should not be produced.