Exam 5: International Trade

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 100 bolts of cloth if it produces no wine. Using this information, we can conclude that:

Use the following to answer questions: -(Figure: The Market for Computers) Use Figure: The Market for Computers. Assume that P_A is the autarky price and P_W is the world price. Consumer surplus with international trade is area:

If Japan must give up the production of 75 computers to produce 25 additional cellular telephones, the opportunity cost of producing 4 cellular telephones is _____ computers.

An example of a tariff is a:

Production possibility frontiers:

Use the following to answer questions: -(Figure: Domestic Market for Digital Cameras) Use Figure: The Domestic Market for Digital Cameras. Assume that P_A is the autarky price and P_W is the world price. Total surplus after international trade _____ by the area _____.

According to the infant industry argument, import protection is needed because:

Taken collectively, people in nations that engage in international trade are NOT likely to:

Use the following to answer questions: -(Figure: The Market for Computers) Use Figure: The Market for Computers. Assume that P_A is the autarky price and P_W is the world price. Producer surplus with international trade would be area:

Use the following to answer questions: -(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 _____.

Use the following to answer questions: -(Figure: The Market for Beats by Dre) Use Figure: The Market for Beats by Dre. Assume that S_d represents the domestic supply curve and D_d represents the domestic demand curve. In the market for Beats by Dre, the autarky price equals:

Britain must give up the production of 75 hats to produce 25 additional sweaters. The opportunity cost of producing 3 hats is _____ sweater(s).

(Table: The Production Possibilities for Cars and Leather Boots) Use Table: The Production Possibilities for Cars and Leather Boots. Given the opportunity costs of production:

Assume that a tariff is imposed on Chinese imports into the United States. This tariff is likely to _____ U.S. producers and _____ Chinese producers.

In a single year, Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips. In the same growing season, Venezuela can raise 50 tons of beef or produce 750 boxes of tulips. When the two countries begin trading beef for tulips, we expect the price of beef in Argentina:

Which statement does NOT describe a source of comparative advantage?

Many countries engage in trade protection by imposing import tariffs or quotas for at least some goods. This is because:

Use the following to answer questions: -(Table: Production Possibilities for the United States and Canada) Use Table: Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. If these nations trade, Canada has the comparative advantage in _____ and should trade _____ to the United States in exchange for _____.

Use the following to answer questions: -(Figure: The Domestic Supply and Demand for SUVs in the United States) Use Figure: The Domestic Supply and Demand for SUVs in the United States. Suppose the world price equals $50,000 and there is free trade. Calculate the loss of consumer surplus.

On a production possibility frontier, opportunity cost is: