Exam 15: International Trade and Trade Policy

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy has a comparative advantage in producing ________, and Mike has a comparative advantage in producing ________.

In an open economy, how many TVs will this country import?

Australia is a net exporter of wool, free trade will benefit the ________.

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.

Refer to the following graph. If this country is producing between point P and G, it will gain by ________ its production of good A and importing more ________.

The slope of a many-worker consumption possibilities is determined by the relative price of

Protectionism is the view that free trade is ________ and should be ________.

Autarky is a situation in which a country is economically

A country's economic welfare most directly depends on

Consider a many-worker economy with two goods. With access to international trade, a country can consume the greatest amount of both goods by producing at the point where the

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. If this country has an open economy, Silvia and Art can get ________ pounds of beef in exchange of a computer.

If the United States is a net importer of bananas, free trade will benefit the

Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country. Suppose this country initially does not trade with the rest of the world. If the world price of a pair of jeans is $40, and this country opens itself to trade, then the annual domestic production of jeans will:

The United States imports garments from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of garments.

Refer to the following graph. The maximum amount of good B can be consumed in this economy with international trade is

An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. To maximize total output, Paula should specialize in producing ________ while Ricardo should specialize in producing ________.

If the United States consumption possibilities are greater than its production possibilities, then the United States must have

If Atlantis has an open economy, then it:

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. How much of each good is produced if each worker fully specializes according to comparative advantage?

The price at which a good or service is traded on international markets is called the ________ price.