Exam 8: Trade

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40. -Refer to the figure above.Which of the following best describes a method to compensate the group that was made worse off when Barylia opened to free trade?

Scenario: A machine that can be used to print both notebooks and magazines is available for use for a fixed period of time. If it is used only to print notebooks, 30 notebooks can be printed. If it is used only to print magazines, 15 magazines can be printed. -Refer to the scenario above.What is the opportunity cost of printing 1 notebook?

The ability of an individual,firm,or country to produce more of a certain good than other competing producers,given the same amount of resources,is referred to as ________.

The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2. -Refer to the figure above.If Lithasia opens up to free trade,then which of the following statements is true?

Scenario: The following quote describes China's effect on world labor markets. China's emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside the heralded consumer benefits of expanded trade are substantial adjustment costs and distributional consequences. These impacts are most visible in the local labor markets in which the industries exposed to foreign competition are concentrated. Adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences. Exposed workers experience greater job churning and reduced lifetime income. At the national level, employment has fallen in the US industries more exposed to import competition, as expected, but offsetting employment gains in other industries have yet to materialize. (The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade by David H. Autor, David Born, and Gordon H. Hanson, Annual Review of Economics Vol.8:1-635, October 2016) -Refer to the scenario above.Which of the following statements stands in contrast to the impact of trade with China experienced by some U.S.workers described in this quote?

The table below shows the domestic price of a pair of trousers in four countries. -Refer to the table above.If the world price of trousers is $18 per pair,then which of the following statements is true?

An economy produces apples and oranges.The dashed line in the figure below represents the production possibilities curve of this economy.Suppose a productivity catalyst in the form of improved agricultural technology is introduced in the economy.In this case,the production possibilities curve will ________.

The figures below show markets for solar panels and textiles in Banana Republic. Pwₒᵣld is the world price in each market. -Refer to the figures above.When Banana Republic opens up to international trade,the domestic sellers in the solar panel market ________.

Scenario: The following figure shows the demand curve, D, and the supply curve, S, of chairs in Barylia. Barylia is open to free trade. The world price of chairs is $3, and the government of Barylia decides to impose a $1 tariff on the import of chairs. -Refer to the scenario above.What is the deadweight loss of the tariff imposed by the government?

Which of the following organizations keeps track of all interstate commodity shipments by state of origin and state of destination in the United States?

The following figure shows the demand curve,D,and the supply curve,S,for soap in Barylia. a)What is the consumer surplus,producer surplus,and total surplus in Barylia if the nation does not participate in free trade? b)If the world price of soap is $2 per unit,will Barylia import or export soap? c)What is the change in consumer surplus,producer surplus,and total surplus if Barylia participates in free trade?

Scenario: Now suppose the United States can trade wheat with the rest of the world, taking the world price of $2 per bushel as given in the figure below. -Refer to the scenario above.With free trade at the world price,the United States ________ wheat in the amount of ________ million metric tons.

Scenario: Viola and Davis are two students who are taking a math class and an English class. The graph below shows the production possibilities curves for each of them. -Refer to the scenario above.What is the opportunity cost of one math homework assignment for Viola?

Scenario: The following production possibilities schedules and curves represent the amount of corn and alfalfa that can be produced on an acre of land in Idaho and Iowa. These production possibilities schedules are shown in the following figure. -Refer to the scenario above.The opportunity cost of a ton of alfalfa in Idaho is ________.

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia in four different scenarios. Barylia is open to free trade. -Refer to the figure above.At a world price of $5,in which scenario(s)does Barylia see its domestic quantity demanded increase?

The table below shows the domestic price of a pair of trousers in four countries. -Refer to the table above.If the world price for a pair of trousers is $12,then which of the following statements is true?

The slope of a production possibility curve represents ________.

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40. -Refer to the figure above.What is the producer surplus before Barylia opens up to free trade?

Which of the following statements is true?

The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2. -Refer to the figure above.Which of the following statements is true?