Exam 8: International Trade

Use the following to answer questions: Figure: The Production Possibility Frontiers for Jackson and Tahoe -(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the 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. If both nations specialize completely in the good of their comparative advantage and Jackson exports 120 bushels of wheat to Tahoe in exchange for 60 head of cattle, then the new consumption point for Jackson after trade is _____ bushels of wheat and _____ head of cattle.

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

The United States and the European Union levy heavy import tariffs on agricultural products, which hurt many poor farmers from the very poorest countries in the world.

Use the following to answer questions: Figure: The Production Possibility Frontiers for Jackson and Tahoe -(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the 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 Thumb Drives -(Figure: The Market for Thumb Drives) Look at the figure The Market for Thumb Drives. Assume that P_A is the autarky price, P_W is the world price, and D and S represent domestic demand and supply, respectively. Consumer surplus in free trade equals the area:

The organization that oversees global trade negotiations and settles trade disputes among its members is the:

If the executives of the U.S. silicon chip industry lobby Congress for protection from imports on the grounds that the military should have an unrestricted domestic supply of silicon chips, they are using the _____ argument.

Use the following to answer questions: Figure: A Tariff on Oranges in South Africa -(Figure: A Tariff on Oranges in South Africa) Look at the figure A Tariff on Oranges in South Africa. When the government imposes a tariff on imported oranges, the price of oranges in South Africa rises from P_W to P_T and domestic consumer surplus _____ to _____.

A direct restriction on the quantity of an import is called a(n):

The United States must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources. The opportunity cost of producing 100 motorcycles is _____ SUV(s).

Use the following to answer questions: Figure: The Domestic Market for Digital Cameras -(Figure: Domestic Market for Digital Cameras) Look at the 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 _____.

International trade based on comparative advantage allows a country to produce outside its production possibility frontier.

A tariff imposed on Japanese imports into the United States tends to _____ U.S. producers and _____ Japanese producers.

Use the following to answer questions: Figure: The Market for MP3 Players -(Figure: The Market for MP3 Players) Look at the figure The Market for MP3 Players. If the world price equals $100 and there is free trade, producer surplus:

Use the following to answer questions: Figure: The Market for Calculators -(Figure: The Market for Calculators) Look at the figure The Market for Calculators. Assume that S and D represent the domestic demand and supply of calculators. The world price, P_W, equals $100. When the economy moves from autarky, under which the price is $150, to free trade, consumer surplus rises by area _____ and producer surplus falls by _____.

Use the following to answer questions: -(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. In the United States the opportunity cost of producing 40 units of machinery is _____ units of petroleum.

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

Use the following to answer questions: Figure: The Production Possibility Frontiers for Jackson and Tahoe -(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the 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. With complete specialization according to comparative advantage, the two nations' combined production of wheat will:

Use the following to answer questions: -(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. The opportunity cost in the United States of producing 30 units of petroleum is _____ units of machinery.

A tariff or quota will _____ prices and _____ the consumption of the protected goods in the importing country.