Exam 15: International Trade and Trade Policy

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one TV?

A legal limit on the quantity of a good that may be imported is called a(n)________.

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari. Who has the greatest comparative advantage in rice production?

Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country. Suppose this country is open to trade with the rest of the world, and the world price of a pair of jeans is $40. If the government imposes a quota on imported jeans of 12,000 pairs per year, then the new equilibrium price of jeans in this country will be:

If this is a closed economy, how many bushels of corn will be produced?

In a many-worker economy the consumption possibilities line touches the production possibility curve

The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. Suppose the economy is closed. The equilibrium price of a microwave is ________ and equilibrium quantity is ________.

In an open economy, the quantity supplied of bushels of corn is ________.

The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. Suppose the economy is closed. The equilibrium price of a car is ________ and equilibrium quantity is ________.

If this is a closed economy, what will the price of a bike be?

The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity supplied will be ________ microwaves.

The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the tariff revenue collected by the government will be ________.

The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year. Silvia's opportunity cost of producing one computer is ________ pounds of beef.

What is the world price of sugar without the tariff?

An economy that does NOT trade with the rest of the world is a(n)

In an open economy, the price of a bike is ________.

Japan exports cars to the other countries of the world. In an open economy Japan is most likely to have a domestic price that is ________ the world price of cars.

There is 5 percent average tax on imported goods in the United States. This tax is known as a(n)________.

Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country. If the world price of a pair of jeans is $40, and this country is open to trade with the rest of the world, then it will ________ pairs of jeans each year.

If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.