Exam 18: International Trade and Public Policy

-Refer to Figure 18.4. With free trade, how many gloves are produced domestically in Duckland?

Voluntary export restraints are illegal under international trading rules.

Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The two reasons a nation like Alphonia would dump products in another nation are

-Refer to Figure 18.4. With free trade, what is the equilibrium quantity of gloves in Duckland?

If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n)________ in the production of grapes.

According to the infant industry argument for trade protectionism,

List four protectionist policies.

Recall the Application about the impact tariffs have on lower income households to answer the following question(s). Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods. -According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because

What is the current WTO policy regarding environmental standards and trade?

Consider the following weekly production possibilities of gloves and hats in Panama and Russia: What is each country's opportunity cost of producing gloves and hats? If the countries could, should they trade?

What is an import quota?

Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 27 per day. If Atlantis produces only kayaks, it can make 18 per day. If Pacifica produces only surfboards, it can make 32 per day. If Pacifica produces only kayaks, it can make 24 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks.

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 the nondurable goods purchased by the poor have ________ the prices of nondurable goods purchased by the rich.

Free trade will affect a country's employment in different industries.

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

An import ban results in

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. Mutually beneficial terms of trade between Russia and Panama are

Which of the following statements is true?

Figure 18.2 -Refer to Figure 18.2. In autarky, the maximum amount of fishing poles that Macadamia can produce is

The opportunity cost of something is