Exam 18: International Trade and Public Policy

Suppose nation A produces only two goods, apples and oranges . If nation A produces only apples, it can make 16 apples per day. If nation A produces only oranges, it can make 4 oranges per day. If the country has a constant production trade- off between apples and oranges, then the opportunity cost of one apple in nation A is:

If Germany can produce cars at a lower opportunity cost than any other nation, Germany is said to have a(n) _______ in the production of cars.

Import bans, import quotas, voluntary export restraints, and tariffs on goods all:

Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?

Suppose there are only 2 nations A and B, and only two goods, x and y. If nation A produces only x, it can make 20x per day. If nation A produces only y, it can make 15y per day. If nation B produces only x, it can make 15x per day. If nation B produces only y, it can make 15y per day. After trade begins nation _______ will specialize in the production of x and nation _______ will specialize in the production of y.

Which of the following situations will arise in the domestic market following the imposition of an import quota?

Suppose the US imposes a ban on imported steel from China because the Chinese steel was made with factories that pollute the environment. If China complains to the WTO regarding the US ban, the WTO will side with:

A restriction on imports is likely to cause further restrictions on trade.

For a nation to have a comparative advantage in a good it must have:

The opportunity cost of a table is 5 chairs in nation A and 4 chairs in nation B. If the nations specialize and trade, an acceptable terms of trade for both nations would be 3 chairs per table.

What does the World Trade Organization do?

The APEC (Asia Pacific Economic Cooperation) has more members than the EU.

Recall Application 3, "Are They Really Dumping?" to answer the following questions: -Based on what you learned from the application, can a firm who exports to the U.S. be charged with dumping even though the price they sell at home is lower?

An import quota is illegal under the rules of the:

The equilibrium price under an import quota is above the price that occurs with an import ban.

National policy always overrides free trade in matters of environmental concern.

-Refer to Table 18.2. The opportunity cost of tractors in Japan is:

In 2002, President Bush imposed a tariff on imported steel. Which of the following caused President Bush to end the tariff in 2003?

Suppose nation A produces only two goods, apples and oranges . If nation A produces only apples, it can make 12 apples per day. If nation A produces only oranges, it can make 36 oranges per day. If the country has a constant production trade- off between apples and oranges, then the opportunity cost of one orange in nation A is:

Since 1973, in the United States wages of skilled workers have: