Exam 20: International Trade, Comparative Advantage, and Protectionism

Refer to the information provided in Figure 20.3 below to answer the question(s) that follow. Figure 20.3 -Refer to Figure 20.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. After trade this country will import

Which of the following statements is false?

If a country has a trade deficit of $50 billion, which of the following can be true?

The theory of comparative advantage is credited to

Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.) Table 20.5 $\quad$$\quad$$\quad$$\quad$$\text { India}$$\quad$$\quad$$\quad$$\quad$ $\quad$$\text { Vietnam }$ Cashews Tea Cashews Tea 0 600 0 600 20 500 20 450 40 400 40 300 60 300 60 150 80 200 80 0 100 100 - - 120 0 - - -Refer to Table 20.5. The most that Vietnam will be willing to pay for a bushel of cashews is

Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1 $\quad$$\quad$$\quad$$\quad$$\quad$ $\text {Mexico}$$\quad$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Guatemala}$ Oranges Bananas Oranges Bananas bushel/acre bushel/acre bushel/acre bushel/acre 200 0 50 0 160 40 40 20 120 80 30 40 80 120 20 60 40 160 10 80 0 200 0 100 -Refer to Table 20.1. The opportunity cost of producing a bushel of oranges in Mexico is

If you are traveling in China and you purchase a meal that costs 140 yuan and the current exchange rate is 7 yuan to the dollar, then the price of the meal in U.S. currency is

The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that

Refer to the information provided in Figure 20.4 below to answer the question(s) that follow. Figure 20.4 -Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed

If Mexico has a comparative advantage in the production of oil compared to France, then

The purpose of the ________ was to discourage imports and encourage exports, and thus keep the price of food high.

Over time, the general movement in the United States has been toward

Until the 1970s, the United States generally had a trade surplus.

In 1991, the European Union began the process of forming the

If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then

The idea of the U.S.-Canadian Free-Trade Agreement that removed all barriers to trade including tariffs and quotas between the United States and Canada by 1998 was to

Protection is often temporary to help infant industries.

Refer to the information provided in Figure 20.1 below to answer the question(s) that follow. Figure 20.1 -Refer to Figure 20.1. Which of the following statements is true?

Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1 $\quad$$\quad$$\quad$$\quad$$\quad$ $\text {Mexico}$$\quad$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Guatemala}$ Oranges Bananas Oranges Bananas bushel/acre bushel/acre bushel/acre bushel/acre 200 0 50 0 160 40 40 20 120 80 30 40 80 120 20 60 40 160 10 80 0 200 0 100 -Refer to Table 20.1. For both countries to benefit from trade, the terms of trade must be between ________ bushel(s) of oranges to bushel(s) of bananas.

If a country has a trade surplus of $40 billion, which of the following can be true?