The answer and the process

4:50 4GC] R. Trade rahances the cconomic well-being of a nation in the sense that A. Both domestic producers and domestic consumers of a good become better off with trade, regardless of whether the nation imports or exports the good in question. B. The gains of domestic producers of a good exceed the losses of domestic consumers of a good, regardless of whether the nation imports or exports the good in question. C. Trade results in an increase in total warplus. D. Trade puts downward pressure on the prices of all goods. E. The domestic price is lower. 9. When the nation of Worldova allows trade and becomes an exporter of silk, A. Residents of Worldova who produce silk become worse off; residents of Worldova who buy walk become better off; and the economic well-being of Worldova rises. B. Residents of Worldova who produce silk become worse off, residents of Worldova who buy silk become better off; and the economic well-being of Workdova falls. C. Residents of Worldova who produce silk become better off, residents of Worldeva who buy silk become worse off: and the economic well-being of Worldova rises. D. Residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off, and the economic well-being of Worldova falls. E. All of the above are wrong. 10. When a country allows trade and becomes an importer of steel, A. The losses of domestic producers of steel exceed the gains of domestic consumers of steel. B. The losses of domestic consumers of steel exceed the gains of domestic producers of steel. C. The gains of domestic producers of steel exceed the losses of domestic consumers of steel. D. The gains of domestic consumers of steel exceed the losses of domestic producers of steel. E. The gains of domestic consumers of steel exceed or equal the losses of domestic producers of steel Price of wagons $18.5 Domestic Supply World Price Domestic Demand 70 Quantity of Wagons 13, Refer to the figure above. The increase in total surplus resulting from trade is A. $60. since producer surplus increases by $180 and consumer surplus falls by $240. B. $60, since consumer surplus increases by $180 and producer surplus falls by $240. C. $75, since consumer surplus increases by $240 and producer surplus falls by $165. D. $75. since consumer surplus increases by $300 and producer surplus falls by $225. E. $75, since consumer surplus increases by $450 and producer surplus falls by $315. 14. A tariff on a product makes A. Domestic sellers better off and domestic buyers worse off. B. Domestic sellers worse off and domestic buyers worse off. C. Domestic sellers better off and domestic buyers better off. D. Domestic sellers worse off and domestic buyers better off. E. Domestic sellers better off and domestic buyers stay the same. Price per# Saddle Domestic Supply ifie4:50 4GC] R. Trade rahances the cconomic well-being of a nation in the sense that A. Both domestic producers and domestic consumers of a good become better off with trade, regardless of whether the nation imports or exports the good in question. B. The gains of domestic producers of a good exceed the losses of domestic consumers of a good, regardless of whether the nation imports or exports the good in question. C. Trade results in an increase in total warplus. D. Trade puts downward pressure on the prices of all goods. E. The domestic price is lower. 9. When the nation of Worldova allows trade and becomes an exporter of silk, A. Residents of Worldova who produce silk become worse off; residents of Worldova who buy walk become better off; and the economic well-being of Worldova rises. B. Residents of Worldova who produce silk become worse off, residents of Worldova who buy silk become better off; and the economic well-being of Workdova falls. C. Residents of Worldova who produce silk become better off, residents of Worldeva who buy silk become worse off: and the economic well-being of Worldova rises. D. Residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off, and the economic well-being of Worldova falls. E. All of the above are wrong. 10. When a country allows trade and becomes an importer of steel, A. The losses of domestic producers of steel exceed the gains of domestic consumers of steel. B. The losses of domestic consumers of steel exceed the gains of domestic producers of steel. C. The gains of domestic producers of steel exceed the losses of domestic consumers of steel. D. The gains of domestic consumers of steel exceed the losses of domestic producers of steel. E. The gains of domestic consumers of steel exceed or equal the losses of domestic producers of steel Price of wagons $18.5 Domestic Supply World Price Domestic Demand 70 Quantity of Wagons 13, Refer to the figure above. The increase in total surplus resulting from trade is A. $60. since producer surplus increases by $180 and consumer surplus falls by $240. B. $60, since consumer surplus increases by $180 and producer surplus falls by $240. C. $75, since consumer surplus increases by $240 and producer surplus falls by $165. D. $75. since consumer surplus increases by $300 and producer surplus falls by $225. E. $75, since consumer surplus increases by $450 and producer surplus falls by $315. 14. A tariff on a product makes A. Domestic sellers better off and domestic buyers worse off. B. Domestic sellers worse off and domestic buyers worse off. C. Domestic sellers better off and domestic buyers better off. D. Domestic sellers worse off and domestic buyers better off. E. Domestic sellers better off and domestic buyers stay the same. Price per# Saddle Domestic Supply ifie4:50 P H P - World price Domestic Demand Quantity of Oil 21. The graph above shows the demand for oil by United States residents, the supply of oil by United States producers, and the world price of oil. Use the labeling of the graph to answer the following questions. (a) Mentify the following before international trade occurs. (1) Price of oil in the United States market (ii) Quantity of oil produced in the United States (b) Now assume that the United States begins to import oil at the world price of P. Identify the quantity imported by the United States. (c) Mentify the consumer surplus in the United States market for each of the following (i) Before international trade (li) After international trade (d) Mentify the producer surplus in the United States market for each of the following cases. (i) Before international trade (iI) After international trade (e) Identify the net gain in total surplus from trade. Price Domestic H Supply P P P L N T Y World Price Demand Q Q Q Q. Q QUANTITY (tons of grain) 23. The diagram above illustrates the domestic market for grain in Country X before and after international trade. The letters inside the diagram represent areas, not points. (a) Using the labeling of the graph, identify each of the following before any trade occurs. (I) Equilibrium price and quantity (ii) Area of consumer surplus (ini) Arca of producer surplus (b) Using the labeling of the graph, identify the amount of grain that Country X will import If it engages in trade and the world price of grain is at P.. (e) Now assume that Country X imposes a tariff that raises the price of grain from the free- trade case to Py. Using the labeling of the graph, identify the change in each of the following. (1) Domestic production (ii) Domestic comsumption (ii) Consumer surplus (iv) Producer surplus ifie