Exam 8: International Trade

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.If Indonesia and Malaysia trade 1 microchip for 1.5 tires,the most that Indonesia can consume is _____ microchips and _____ tires,while the most that Malaysia can consume is _____ microchips and _____ tires.

Japan must give up the production of 75 computers to produce 25 additional cellular telephones.The opportunity cost of producing 3 computers is _____ cell phone(s).

Use the following to answer question: -(Scenario: The Production of Wheat and Toys)Use Scenario: Production of Wheat and Toys.Country A has an absolute advantage in _____ and a comparative advantage in the production of _____.

Both the United States and Canada produce automobiles and their components;however,each particular model or component is produced in only one of the two countries.Which factor explains this pattern of production and trade?

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost in Mexico of producing 10 units of machinery is _____ units of petroleum.

An example of an import quota is a:

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost of _____ is _____ in the United States as (than)in Mexico.

Comparative advantage in international trade:

Evidence shows that increased international trade has increased the wages of unskilled workers in the United States.

If Canada imposes a tariff of $5 per bottle on French wine,the MOST likely effect will be to raise the price of wine in Canada by:

Which model states that nations that are abundant in a factor will have a comparative advantage in a good whose production is intensive in that factor?

If labor is abundant in South Africa but capital is scarce,when South Africa opens to trade,the price of labor will _____ and the price of capital will _____.

(Table: The Production Possibilities for Cars and Leather Boots)Use Table: The Production Possibilities for Cars and Leather Boots.The opportunity cost of producing one car in Mexico is:

Use the following to answer question: -(Figure: The Market for Roses)Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Consumer surplus with international trade would be area:

Use the following to answer question: -(Figure: The Production Possibility Frontiers for Jackson and Tahoe)Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 bushels of wheat,while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.If the two countries engage in international trade and specialize completely and if the price of 1 head of cattle equals the price of 2 bushels of wheat,world production of cattle will:

Use the following to answer question: -(Figure: The Market for Roses)Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Consumer surplus without international trade would be area:

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.The opportunity cost of producing 1 microchip in Malaysia is _____ tire(s).

If the United States removed the tariffs and quotas on sugar,in the U.S.market for sugar:

Use the following to answer question: -(Figure: The Market for iPhones)Use Figure: The Market for iPhones.Assume that P_A is the autarky price,P_W is the world price,and D and S represent domestic demand and supply,respectively.Consumer surplus in free trade equals the area:

The United States must give up the production of 500 bicycles to produce 20 additional tractors.The opportunity cost of producing 5 tractors is _____ bicycles.