Exam 17: International Trade

Which of the following reasons explains why many countries with relatively small populations import automobiles from Japan,U.S. ,and Germany rather than produce them domestically?

The following graph shows the demand for and domestic 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 gain of the foreign exporters with quota rights is represented by the area _____.

When a country imposes a per-unit tariff on an imported good or service,_____.

Ad valorem tariffs on imports are based on a percentage of an import's value,while specific tariffs are based on a lump sum per physical unit imported.

Which of the following is not an argument in favor of restricting trade?

The following table shows the demand,supply,and price of tulips in the Netherlands.If the world price of tulips is $1 and there are no trade restrictions,the Netherlands will: Table 19.2 ? ? Domestic Supply and Demand for Tulips in the Netherlands $\begin{array}{|c|c|c|c|}\hline {\text { Demand }} & &{\text { Supply }} \\\hline Q & P(\$) & Q & P(\$) \\\hline 12,000 & 0 & 6,000 & 0 \\\hline 10,000 & 1 & 7,000 & 1 \\\hline 8,000 & 2 & 8,000 & 2 \\\hline 6,000 & 3 & 9,000 & 3 \\\hline 4,000 & 4 & 10,000 & 4 \\\hline\end{array}$

If there are no trade restrictions,a country will import a particular good if:

Regional trading bloc agreements:

Which of the following reasons best explains U.S.imports of crude oil from Saudi Arabia and diamonds from South Africa?

The world price of a good refers to the quantity of one good exchanged for a unit of another good.

Which of the following was a motive of the United States to negotiate a free trade agreement with Mexico?

During a year,the government of a country imposed a tariff on imported steel.The rationale behind this policy was that lower-priced imports had put the country's established steel industries in jeopardy of closing.This government policy was based on:

The following graph shows the demand for and domestic supply of a good in a country.If the country decides to trade,then at a world price of $1.00 _____.

Which of the following factors is most significant in determining the pattern of international trade?

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Cambria has a comparative advantage in the production of rice. Table 19.1 ? Cambria Bodoni Tons of rice per day T-shirts per day Tons of rice per day T-shirts per day 20 0 100 0 0 800 0 1000

The following graph shows the market equilibrium for corn in the United States.If the world price of corn is $6 and there are no trade restrictions,the United States will:

For each fancy dress Cafilla produces,it gives up the opportunity to make 50 pounds of cheese.Bodoni can produce one fancy dress for every 100 pounds of cheese it produces.If specialization and trade were to occur between these two countries,which of the following would be consistent with the theory of comparative advantage?​

The industry for computers has just started growing in the nation of Verdana,and there is potential for the industry to flourish in the near future.However,there is stiff competition from other foreign nations that provide computers to the domestic market.The government is considering imposing a tariff.Which of the following arguments justifies the government's decision to impose a tariff on the import of computers?

The production possibilities curve of a country will be a straight line if _____.

An import quota is a tax on imports.