Exam 15: International Trade and Trade Policy

After the imposition of the quota, the quantity demanded of TVs is ________.

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. With the opportunity to trade Silvia and Art can ________ the maximum consumption of computers by ________ units.

Why is there often resistance to free trade?

Suppose the automobile industry can import 10% of the total quantity demanded of cars in the U.S. This is an example of a(n)________.

Relative to an environment with free trade and no tariff, the winners from the tariff are the domestic ________, and the losers from the tariff are the domestic ________.

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. With the opportunity to trade, Silvia can trade all the computers she can produce per year if she specializes in producing computers, for ________ pounds of beef.

After the imposition of the quota, the amount of revenue collected by the government is ________.

The combination of goods and services Mexico's citizens might feasibly consume are called Mexico's

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 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.

In an open economy, the price of a TV will be ________.

Suppose that, a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, the price of that good will ________ when the economy goes from closed to open for trade.

If the price of a good in a closed economy is lower than the world price, then with an open economy this country will be a ________ of that good.

Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries?

What is the domestic price of a TV in a closed economy?

Suppose that a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, domestic suppliers will supply ________ of that good after it opens itself to international trade.

If this is a closed economy, how many bikes will be produced?

The clear winners from the quota are the ________, and the losers are the ________.

If Utopia opened itself to trade it would

The accompanying figure shows the annual production possibilities curve for a small country that is open to trade with the rest of the world. Suppose the world price of cashews is $12 per pound, and the world price of mangos is $4 per pound. As indicated in the figure, at these prices, this country will produce 21,000 pounds of mangos and 5,000 pounds of cashews each year. At this country's current level of production, what is the opportunity cost of a pound of mangos in terms of cashews?

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 both Art and Silvia worked full-time producing beef, how many pounds of beef can they produce per year?