Exam 17: International Trade.

Exhibit 17.b -Refer to Exhibit 17.b, which shows the supply of a product in the United States. If the government establishes a sugar quota of Q to Q', the supply curve combining U.S. production and imports becomes _____ at the world price of _____ and remains horizontal until the quantity supplied reaches _____.

Selling a commodity abroad for less than is charged in the home market or less than the cost of production is known as _____

Specialization based on absolute advantage leads to gains from trade.

Differences in tastes among nations _____

Suppose the U.S. government is considering imposing either a tariff that would result in imports falling to 5 million units per year or an import quota of 5 million units per year. Which of the following would be true in such a case?

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

A lump-sum tax per unit on imports is known as _____

World trade totaled about ____ in 2016.

The top trading partner for U.S. imports in 2016 was _____

Which of the following reasons best explains why the United States is a net exporter of farm crops?

It is possible for one country to have a comparative advantage in the production of all products.

The top trading partners for U.S. exports and imports in 2016 were _____

The world demand for and the world supply of a good will together determine the _____

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 declining industries argument was formulated as a rationale for protecting emerging domestic industries from foreign competition.

Economists argue that the U.S. government can earn federal revenue _____

Table 17.1 -Refer to Table 17.1, which shows the per-day production data of rice and T-shirts for two countries, Cambria and Bodoni. Based on the table, it can be said that Bodoni has a comparative advantage in the production of rice.

Exhibit 17.4 -Refer to Exhibit 17.4, which shows the market for wheat in 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 and a specific tariff of $6 is imposed on each bushel of wheat imported. The net welfare loss from the tariff is represented by area(s) _____

The fourth largest category of U.S. exports in 2016 was _____, which accounted for _____ of total exports.

International trade increases the variety of goods and services available in a country.