Exam 8: International Trade

Relative to the size of their economy,many other countries engage in more foreign trade than the United States.

Use the following to answer question: -(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.In Mexico,the opportunity cost of producing 150,000 barrels of crude oil is _____ tractors.

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.Assume each nation specializes completely,based on comparative advantage,and the price of 1 head of cattle equals the price of 2 bushels of wheat.If Jackson exports 120 bushels of wheat to Tahoe,Tahoe will export _____ head of cattle to Jackson.

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._____ has/have an absolute advantage in producing cars.

If a country has the comparative advantage in producing wooden furniture,then with free trade:

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.If these nations were to specialize and trade,the United States would benefit from trade by exporting 1 million cars to Canada in exchange for _____ million board feet of lumber.

A tariff imposed on Japanese imports into the United States tends to _____ U.S.producers and _____ Japanese producers.

If the United States imposes an import quota on French wines,the result in the short run is likely to be _____ profits for American wine producers and _____ profits for French wine producers.

Use the following to answer question: -(Figure: The Market for Oranges in South Africa)Use Figure: The Market for Oranges in South Africa.In autarky,the price of oranges in South Africa is P₁.When the economy is opened to trade,the price falls to P_W and the change in total surplus is area:

When a country joins the World Trade Organization,it gives up all of its ability to determine its trade policy.

Assume that the United States imposes an import quota on Columbian coffee.Relative to the equilibrium world price that would prevail in the absence of import quotas,it is likely that the equilibrium price of coffee in the United States will _____ and the equilibrium price of coffee in Columbia will _____.

Use the following to answer question: -(Figure: Domestic Market for Digital Cameras)Use Figure: The Domestic Market for Digital Cameras.Assume that P_A is the autarky price and P_W is the world price.Total surplus before international trade is equal to the area:

If a country's price for wood furniture in the absence of trade is lower than the price with trade,the country will likely:

If the opportunity costs of production are constant,then the production possibility frontier is:

France and England both produce wine and cloth with constant opportunity costs.France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine.England can produce 50 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine.Using this information,we can conclude that:

If a country's price in the absence of trade is lower than the price with trade,then the domestic quantity supplied with trade is _____ the domestic quantity demanded.

Countries that engage in trade will tend to specialize in goods in which they have a(n)_____ and will _____ those goods.

Use the following to answer question: -(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.In the United States,the opportunity cost of producing 30,000 barrels of crude oil is _____ tractors.

Use the following to answer question -(Figure: The Domestic Market for Rice)Use Figure: The Domestic Market for Rice.Assume that P_A is the autarky price and P_W is the world price.Before international trade,consumer surplus is equal to the area:

Use the following to answer question: -(Figure: The Markets for Melons in Russia)Use Figure: The Market for Melons in Russia.If the world price of melons is equal to E,Russia will _____ of melons.