Exam 18: International Trade and Public Policy

Figure 18.3 -Refer to Figure 18.3. After trade and specialization begin, the maximum amount of pogo sticks that Livonia can consume is

Which of the following statements is FALSE?

Figure 18.3 -Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. The opportunity cost of a glove in Russia is

Importers collect additional revenues from a ________, and governments collect additional revenues from ________.

-Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of gloves in Duckland?

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. The opportunity cost of a hat in Russia is

A voluntary export restraint occurs when one country prevents a specific product from being imported from another country.

Recall the Application about why international trade may reduce measured inequality in the United States to answer the following question(s). While it is conventional wisdom now that inequality in the United States has increased in the last several decades, until recently no one has taken a careful look at the actual living standards of different income groups, taking into account the goods they purchase. Two economists from the University of Chicago, Christian Broda and John Romalis, investigated the living standards of low-income groups and high-income groups based on the goods these groups purchase. -According to this Application, prices for nondurable goods have ________ prices for services.

Import restrictions create an incentive to smuggle.

Would consumers benefit more from a tariff or a quota on imports?

An import quota

Autarky refers to

The opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany. If the nations split the difference between the willingness to pay and the willingness to accept, the terms of trade are 3 wristwatches per wall clock.

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. Panama has a comparative advantage in

What is a tariff?

Recall the Application about the impact Chinese imports have on U.S. labor markets to answer the following question(s). -According to this Application, those communities that were more exposed to imports had larger increases in workers receiving

-Refer to Figure 18.4. With a tariff or quota, what is the equilibrium quantity of gloves in Duckland?

Dumping occurs when a firm

Tariffs ________ prices for domestic consumers and import quotas ________ prices for domestic consumers.