Exam 34: International Trade

Exhibit 34-9 -Refer to Exhibit 34-9.In the no specialization-no trade case,suppose country X produces and consumes 100 units of good A and 20 units of good B.Country Y produces and consumes 20 units of good A and 60 units of good B.If the two countries specialize and trade,and the actual amounts traded are 125 units of good A for 25 units of good B,how many more units of good A will country Y consume by specializing and trading?

Exhibit 34-1 -Refer to Exhibit 34-1.The opportunity cost of one unit of X in Country B is

Exhibit 34-1 -Refer to Exhibit 34-1.Country A is the lower opportunity cost producer of

The answer is: "There is a net loss to society." What is the question?

If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that

Exhibit 34-7 -Refer to Exhibit 34-7.The world price of X is $15.If imports of X are legally limited to 30 units,the price of X in the United States would be

Exhibit 34-5 -Refer to Exhibit 34-5.The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2.

On an aggregate level,free trade produces a net __________ and restricted trade produces a net __________.

Exhibit 34-9 -Refer to Exhibit 34-9.For country Y,the opportunity cost of producing one unit of good B is __________ unit(s)of good A.

Exhibit 34-10 -Refer to Exhibit 34-10. Jason's opportunity cost of mowing the lawn is

The law of comparative advantage can be used to explain why many couples divide up their household duties along gender lines.

Exhibit 34-9 -Refer to Exhibit 34-9.For country X,the opportunity cost of producing one unit of good A is __________ unit(s)of good B.

Exhibit 34-1 -Refer to Exhibit 34-1.Considering the data,which of the following terms of trade would both countries agree to?

It is argued that certain industries should be protected from foreign competition because they are needed to secure the United States from foreign aggression.This argument is called the __________ argument.

"New industries should be protected from older established foreign competitors until they are mature enough to compete on an equal basis." This argument for trade restrictions is called the __________ argument.

Which of the following is not an argument for trade restrictions?

"Dumping" refers to

In order for good X to be a likely candidate for offshoring,it must be produced with ______________ labor intensity and be a relatively ________________ good.

Exhibit 34-1 -Refer to Exhibit 34-1.Considering the data,which of the following terms of trade would both countries agree to?

Exhibit 34-11 -Refer to Exhibit 34-11.If the world price (P_W)is operational in the market,then U.S.imports equal