Exam 8: International Trade

Use the following to answer question: -(Figure: The Market for Calculators)Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators.The world price,P_W,equals $100.The government imposes an import tariff of $20 per calculator.Compared with the free trade situation,the tariff leads to a deadweight loss equal to area:

Use the following to answer question: -(Scenario: The Production of Wheat and Toys)Use Scenario: Production of Wheat and Toys.If each country specializes completely in the good for which it has the comparative advantage,which combination represents a maximum possible amount of total production of the two goods,given the specialization?

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.The loss of producer surplus when the market moves from autarky to free trade equals the area:

Use the following to answer question: -(Table: Production Possibilities for the United States and Canada)Use Table: Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.In _____,the opportunity cost of _____ cars is _____ board feet of lumber.

France and England both produce wine and clothing with constant opportunity costs.France will have a comparative advantage in wine production if:

Use the following to answer question: -(Figure: The Market for Beats by Dre)Use Figure: The Market for Beats by Dre.Assume that S_d represents the domestic supply curve and D_d represents the domestic demand curve.If the world price equals $100 and there is free trade,domestic consumer surplus _____ and domestic producer surplus _____ compared with autarky.

Use the following to answer question: -(Scenario: The Production of Wheat and Toys)Use Scenario: Production of Wheat and Toys.If each country specializes in the good for which it has the comparative advantage,then the price of wheat in terms of toys will be:

If Japan must give up the production of 75 computers to produce 25 additional cellular telephones,the opportunity cost of producing 4 cellular telephones is _____ computers.

A tariff is MOST likely to _____ prices and _____ domestic consumption of the good or service being protected.

Use the following to answer question: -(Scenario: The Production of Wheat and Toys)Use Scenario: Production of Wheat and Toys.If each country specializes in the good for which it has the comparative advantage:

Use the following to answer question: -(Figure: The Market for Calculators)Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators.The world price,P_W,equals $100.The government imposes a quota restricting imports to 25 calculators.The domestic price rises to _____ and the quota rent is equal to area _____.

Use the following to answer question: -(Figure: The Market for Tea in Sri Lanka)Use Figure: The Market for Tea in Sri Lanka.In autarky,the price is P₁.When the economy is opened to trade,the price rises to P_W,and producer surplus _____ to _____.

Which statement is NOT true about the World Trade Organization (WTO)?

In autarky,the amount of a country's production and consumption of a good must be identical.

Assume an economy moves from autarky to free international trade.In the export sector,consumer surplus _____,producer surplus _____,and the economy as a whole _____.

Use the following to answer question: -(Scenario: The Production of Wheat and Toys)Use Scenario: Production of Wheat and Toys.The opportunity cost of producing a unit of wheat in country B is:

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.With complete specialization according to comparative advantage,the two nations' combined production of wheat will:

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

The organization that oversees global trade negotiations and settles trade disputes among its members is the:

If the United States can produce 30 computers for every car it produces and Japan can produce 15 computers for every car it produces,_____ has the _____ advantage in car production.