Exam 8: International Trade

The job creation argument for protection against free trade is:

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.The United States has a comparative advantage in _____,and Mexico has a comparative advantage in _____.

Use the following to answer question: -(Table: Production Possibilities)Use Table: Production Possibilities.The opportunity cost of 1 computer for _____ is _____box (es)of roses.

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.Producer surplus in free trade equals the area:

The _____ model analyzes trade under the assumption that opportunity costs are constant and therefore production possibility frontiers are straight lines.

Since the United States imports a large quantity of textiles from Asia,the overall wages of U.S.textile workers have _____,while the price of textiles in the United States has _____.

In a single year,Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips,we expect the consumer surplus from beef consumption to:

Exports increase producer surplus but decrease consumer surplus and total surplus.

An urbanized country has 100 million workers living on 100 square miles of land.A country that is principally rural has 1 million workers living on 10 square miles of land.From this information we know that the urbanized country is _____ relative to the rural country.

In a Ricardian model of international trade,the production possibility frontiers are _____,indicating that the opportunity cost of increasing the production of one item relative to another _____.

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 40 tractors is _____ barrels of crude oil.

A tariff _____ the price received by domestic producers and _____ the price paid by domestic consumers.

The World Trade Organization:

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

In autarky,a country:

The MOST likely effects of tariffs and/or import quotas are to _____ prices and to _____ consumption of the protected goods in the importing country.

Which item is an example of a tariff?

In a single year,Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips,we expect the price of beef in Argentina:

Goods and services purchased from abroad are _____,while goods and services sold abroad are _____.

The United States must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources.The opportunity cost of producing 100 motorcycles is _____ SUV(s).