Exam 17: International Trade

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then the decrease in consumer surplus can be represented by the area _____.

Suppose there is a policy debate over imposing trade restrictions on imported semiconductors in the United States.A congresswoman argues that it is necessary to impose trade restrictions,such as a tariff,on the semiconductor industry to protect workers in the domestic semiconductor industry.The congresswoman claims that without trade protection,there will be layoffs,causing many U.S.workers in the semiconductor industry to be unemployed.She is basing her preference for trade restrictions on the:

Which of the following is true of international trade?

U.S.consumers would be better off if they bought only U.S.-produced goods.

One reason for international specialization is:

Which of the following is not a type of trade restriction?

The following image shows the market for wheat for the country of Palatino.S^D is the domestic supply of wheat,and D^D is the domestic demand for wheat.Suppose the world price of wheat is $9 per bushel of wheat.Suppose a specific tariff of $6 is imposed on each bushel of wheat imported.Government revenue from the tariff equals:

Specialization based on absolute advantage leads to gains from trade.

Tariffs and quotas are the only two devices used to restrict foreign trade.

A nation's producers can compete effectively with imports from other nations if:

Which of the following is true of autarky?

Which of the following is true of a country's production possibilities frontier?

Autarky is: ​

Economists argue that U.S.government can earn federal revenue:

The following graph shows the supply of and demand for baseballs in the United States.If the world price of a baseball is $3,then the quantity of baseballs demanded is _____.

If the United States has an absolute advantage in producing computer components,it should export them worldwide.

Japan is generally considered a closed economy.

The American Tire Company has been experiencing a steady loss of market over the past 40 years due to imports of lower-priced tires.Which of the following arguments would American Tire most likely present to Congress when it lobbies for trade restrictions?

Which of the following does not result in a mutually beneficial trade between two countries?

The following graph shows the supply of and demand for baseballs in the United States.If the world price is $3 per baseball and a tariff of $1 per baseball is imposed,the net welfare loss of the tariff is shown by the area _____.