Exam 19: Comparative Advantage, international Trade, and Exchange Rates

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods,effectively acting as a quota of zero imports when stimulus money was being spent.For the U.S.steel industry,a "Buy American" provision would create gains for all of the following except

If the dollar appreciates,how will aggregate demand in the United States be affected?

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Figure 19-11 -Refer to Figure 19-11.Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?

When Sophie,a French citizen,purchases a Dell computer in Paris that was produced in Texas,the purchase is

Economists believe the most persuasive argument for protectionism is to

Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.This statement describes the ________ argument for protectionism.

Figure 19-4 Figure 19-4 shows the U.S.demand and supply for leather footwear. -Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

A tariff

If American demand for purchases of British goods has decreased,how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

The 1994 agreement that eliminated most tariffs among the United States,Canada,and Mexico is known as

In the United States during the Great Depression,tariffs were ________ than they were following World War II,and ________ than they are today.

If the U.S.government implements a tariff on Chinese tire imports,the price of Chinese-made tires will ________,the quantity demanded will ________,and consumer surplus will ________.

If Estonia has an absolute advantage in the production of two goods compared to Norway,Estonia can not benefit from trade with Norway.

Protectionism is usually justified on the basis of one of four arguments.What are those four arguments?

What does it mean for a country to have an absolute advantage in producing a product?

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

Table 19-11 Production and Consumption Production Without Trade With Trade Clucks Huts Clocks Hats Derrnark 900 150 1,200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats.Table 19-11 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19-11.Which country has an absolute advantage in producing clocks?

Figure 19-5 Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 19-5 shows the impact of this tariff. -Refer to Figure 19-5.The increase in domestic producer surplus as a result of the tariff is equal to

Table 19-11 Production and Consumption Production Without Trade With Trade Clucks Huts Clocks Hats Derrnark 900 150 1,200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats.Table 19-11 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19-11.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded,how many clocks will Denmark gain compared to the "without trade"numbers?