Exam 8: International Trade

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,consumer surplus equals _ and producer surplus equals _.

(Multiple Choice)

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Question 101

Assume that the United States imposes an import quota on Scottish wool suits.Relative to the equilibrium price that would prevail in the absence of quotas,the equilibrium price of suits in the United States will most likely _ and the equilibrium price of suits in Scotland will most likely _.

(Multiple Choice)

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Question 102

Since labor is relatively scarce in Canada,free trade should cause the wages paid to Canadian labor to rise.

(True/False)

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Question 103

In which area does the United States significantly limit imports?

(Multiple Choice)

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Question 104

If the United States placed larger tariffs on all textiles,domestic _ surplus would _.

(Multiple Choice)

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Question 105

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 150 bolts of cloth if it produces no wine.When international trade takes place,each country specializes completely in the production of the good in which it has a comparative advantage: 1 barrel of wine exchanges for 1 bolt of cloth and France exports 50 units of wine.We can conclude that France produces ___ units of wine and _ units of cloth and that France consumes _ units of wine and ___ units of cloth.

(Multiple Choice)

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Question 106

United States follows a policy of free trade,which is especially apparent for sugar and textiles,in which all restrictions on international trade have been removed.

(True/False)

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Question 107

When an economy moves from autarky to free international trade,for industries in the export sector,consumer surplus ___,producer surplus _,and the economy as a whole ___.

(Multiple Choice)

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Question 108

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Malaysia has an absolute advantage in producing:

(Multiple Choice)

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Question 109

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 Indonesia is _____ tire(s).

(Multiple Choice)

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Question 110

The United States can produce wine domestically,but it can also import wine if the world price is lower than the domestic price.If the United States imports wine,consumer surplus will ___ by _ the _ in producer surplus;total surplus will ___.

(Multiple Choice)

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Question 111

Japan's comparative advantage in automobiles can be attributed to:

(Multiple Choice)

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Question 112

Mexico is relatively labor-abundant when compared with the United States.Therefore,Mexico has a comparative advantage in _____ compared with the United States.

(Multiple Choice)

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Question 113

A tariff imposed on U.S.imports into Japan tends to _ U.S.producers and _ Japanese producers.

(Multiple Choice)

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Question 114

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.In the United States the opportunity cost of producing 40 units of machinery is _____ units of petroleum.

(Multiple Choice)

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Question 115

Which statement does NOT describe a source of comparative advantage?

(Multiple Choice)

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Question 116

Use the following to answer question: -(Figure: The Market for Laptops)Use Figure: The Market for Laptops.Assume that S and D are the domestic supply and demand curves and the world price is P_W.Identify the area of government tax revenue when a tariff raises the domestic price from the world price to P_T.

(Multiple Choice)

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Question 117

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.If Malaysia specializes completely in the production of the good of its comparative advantage,it will produce:

(Multiple Choice)

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Question 118

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 105 units of petroleum is _____ units of machinery.

(Multiple Choice)

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Question 119

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 consumer surplus will _ to area _.

(Multiple Choice)

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Question 120

Showing 101 - 120 of 260

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,consumer surplus equals _ and producer surplus equals _.

Assume that the United States imposes an import quota on Scottish wool suits.Relative to the equilibrium price that would prevail in the absence of quotas,the equilibrium price of suits in the United States will most likely _ and the equilibrium price of suits in Scotland will most likely _.

Since labor is relatively scarce in Canada,free trade should cause the wages paid to Canadian labor to rise.

In which area does the United States significantly limit imports?

If the United States placed larger tariffs on all textiles,domestic _ surplus would _.

United States follows a policy of free trade,which is especially apparent for sugar and textiles,in which all restrictions on international trade have been removed.

When an economy moves from autarky to free international trade,for industries in the export sector,consumer surplus ___,producer surplus _,and the economy as a whole ___.

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Malaysia has an absolute advantage in producing:

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 Indonesia is _____ tire(s).

The United States can produce wine domestically,but it can also import wine if the world price is lower than the domestic price.If the United States imports wine,consumer surplus will ___ by _ the _ in producer surplus;total surplus will ___.

Japan's comparative advantage in automobiles can be attributed to:

Mexico is relatively labor-abundant when compared with the United States.Therefore,Mexico has a comparative advantage in _____ compared with the United States.

A tariff imposed on U.S.imports into Japan tends to _ U.S.producers and _ Japanese producers.

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.In the United States the opportunity cost of producing 40 units of machinery is _____ units of petroleum.

Which statement does NOT describe a source of comparative advantage?

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.If Malaysia specializes completely in the production of the good of its comparative advantage,it will produce:

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 105 units of petroleum is _____ units of machinery.

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 consumer surplus will _ to area _.

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 8: International Trade

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,consumer surplus equals _____ and producer surplus equals _____.

Since labor is relatively scarce in Canada,free trade should cause the wages paid to Canadian labor to rise.

In which area does the United States significantly limit imports?

If the United States placed larger tariffs on all textiles,domestic _____ surplus would _____.

United States follows a policy of free trade,which is especially apparent for sugar and textiles,in which all restrictions on international trade have been removed.

When an economy moves from autarky to free international trade,for industries in the export sector,consumer surplus _____,producer surplus _____,and the economy as a whole _____.

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Malaysia has an absolute advantage in producing:

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 Indonesia is _____ tire(s).

The United States can produce wine domestically,but it can also import wine if the world price is lower than the domestic price.If the United States imports wine,consumer surplus will _____ by _____ the _____ in producer surplus;total surplus will _____.

Japan's comparative advantage in automobiles can be attributed to:

Mexico is relatively labor-abundant when compared with the United States.Therefore,Mexico has a comparative advantage in _____ compared with the United States.

A tariff imposed on U.S.imports into Japan tends to _____ U.S.producers and _____ Japanese producers.

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.In the United States the opportunity cost of producing 40 units of machinery is _____ units of petroleum.

Which statement does NOT describe a source of comparative advantage?

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.If Malaysia specializes completely in the production of the good of its comparative advantage,it will produce:

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 105 units of petroleum is _____ units of machinery.

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 PW and consumer surplus will _____ to area _____.

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

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,consumer surplus equals _ and producer surplus equals _.

If the United States placed larger tariffs on all textiles,domestic _ surplus would _.

When an economy moves from autarky to free international trade,for industries in the export sector,consumer surplus ___,producer surplus _,and the economy as a whole ___.

The United States can produce wine domestically,but it can also import wine if the world price is lower than the domestic price.If the United States imports wine,consumer surplus will ___ by _ the _ in producer surplus;total surplus will ___.

A tariff imposed on U.S.imports into Japan tends to _ U.S.producers and _ Japanese 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 consumer surplus will _ to area _.