Exam 8: International Trade

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

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.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,then the new consumption point for Tahoe after trade is _____ bushels of wheat and _____ head of cattle.

According to the Heckscher-Ohlin model,Brazil will have a comparative advantage in oranges if the factors that are _____ in the production of oranges are _____.

Comparative advantage arises from:

Use the following to answer question: -(Figure: Comparative Advantage and the Production Possibility Frontier)Use Figure: Comparative Advantage and the Production Possibility Frontier._____ has an absolute advantage in the production of _____ and a comparative advantage in the production of _____.

Britain must give up the production of 75 hats to produce 25 additional sweaters.The opportunity cost of producing 4 sweaters is _____ hats.

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._____ has a(n)_____ advantage in the production of _____.

The United States must give up the production of 500 bicycles to produce 20 additional tractors.The opportunity cost of producing 100 bicycles is _____ tractor(s).

Use the following to answer question: -(Figure: The Markets for Melons in Russia II)Use Figure: The Market for Melons in Russia II.Suppose Russia opens to trade and finds the world price to be $10.Russia will:

A regulation that specifies the maximum amount of a good or service that may be imported during a specified period is a(n):

If Japan levies tariffs on U.S.goods entering Japan,this will tend to:

Use the following to answer question: -(Figure: A Tariff on Oranges in South Africa)Use Figure: A Tariff on Oranges in South Africa.When the government imposes a tariff on imported oranges,the price of oranges in South Africa rises from P_W to P_T and there's a net _____ to total surplus of _____.

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 toys in country A is _____ unit(s)of wheat.

When a country exchanges goods with another country,in the short run:

Chile has a comparative advantage over the United States in copper.Which factor is a source of this comparative advantage?

As measured by a percentage of the entire economic output:

The model suggesting that countries will specialize in producing the good that uses its relatively abundant factor of production MOST intensively is referred to as the _____ model.

Policies that limit imports,usually to insulate domestic producers from foreign competition,are known as:

_____ oversees international trade agreements.

If a market begins to engage in international trade,we can assume that: