Exam 19: International Trade

The opportunity cost of producing one car in Germany is 2, 000 bushels of wheat, and the opportunity cost of producing one car in Canada is 1, 200 bushels of wheat.The two countries can realize mutual gains from trade if they agree on terms of trade that are

International trade equalizes the opportunity cost of producing any good around the world.

Which of the following is not a type of trade restriction?

The United States is a major exporter of

The losers when the United States institutes trade restrictions include

Exhibit 19-2 In Exhibit 19-2, the opportunity cost of 1 ton of rice in Costa Rica is

The difference between an import quota and a tariff that results in the same domestic price is

Exhibit 19-7 Suppose that the world price in Exhibit 19-7 is $2.00 per unit.What is the smallest import quota that would not affect the level of imports in this country?

Exhibit 19-1 Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What is the opportunity cost of a coconut in Beta?

For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese.Germany can produce one watch for every 100 pounds of cheese it produces.Which of the following is true with regard to opportunity costs in the two countries?

Exhibit 19-5 If the country illustrated in Exhibit 19-5 is initially trading without restrictions at a world price of $1.00, net welfare loss as a result of a tariff of $0.50 per unit is represented by area

International trade increases world economic efficiency for the same reasons that domestic trade increases national economic efficiency.

The term autarky refers to

U.S.auto workers sometimes experience structural unemployment because of the popularity of foreign cars.Which argument is a labor union most likely to present to Congress when it lobbies for trade restrictions?

Exhibit 19-6 Exhibit 19-6 shows domestic supply and demand for baseballs in the United States.The world price of a baseball is $3.With free trade, how many baseballs will be purchased in the United States?

A tariff is a tax on either imports or exports.

Which of the following is not correct concerning quotas?

Exhibit 19-6 In Exhibit 19-6, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the amount of tariff revenue the United States government collects?

Which of the following does not explain why U.S.wage rates are higher than wage rates in developing countries?

An effective import quota is one that