Exam 20: World Trade Equilibrium

The data in the table below assumes that with the same quantity of resources,both Australia and Philippines produces food and computers.Australia can make 1,000 computers or 2,000 units of food in a day,and the Philippines can make 200 computers or 1,200 units of food in a day. Table 20.2 -According to Table 20.2,Philippines has an:

The import demand curve shows the amount of the home country's:

If the international price of oranges is less than the domestic price of oranges in Spain,then Spain will export oranges to other countries.

Absolute advantage is determined by comparing the opportunity costs of producing each good in different countries.

The proportion of domestic demand for a good that is satisfied by domestic production relative to that supplied by imports is determined by:

Whether exchange is between individuals,firms,or countries,voluntary trade occurs because:

The following table shows the units of calculators and rice produced by a laborer in a day in Japan and Korea. Table 20.3 -Refer to Table 20.3.What is the least amount Japan is willing to accept for 1 calculator?

No country can have an absolute advantage in the production of more than one good.

International trade permits greater consumption than would be possible from the domestic production alone.

Suppose France can produce 9,000 potatoes or 3,000 lemons per day,and that Italy can produce 3,000 potatoes or 3,000 lemons per day.Which of the following statements in this context is true?

Countries tend to export different goods and services because of:

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S.and Canada at different prices. Table 20.5 - According to Table 20.5,the international equilibrium price of computers is:

The following table shows that in one day poultry farmers in Arkansas can produce 3 cartons of eggs,while poultry farmers in Idaho can produce 2 cartons of eggs.It takes Arkansas potato farmers one day to produce 30 tons of potatoes,while Idaho potato farmers produce 10 tons of potatoes in that same time. Table 20.4 - According to Table 20.4,what is the opportunity cost of 1 crate of eggs in Idaho?

"Most textiles worn by American consumers are produced in Asian and South American countries where the opportunity costs of production are lower." This observation refers to the:

The product life cycle theory of comparative advantage predicts that a new product will be first produced and exported by:

What is known as the Dutch disease?

Between two countries,comparative advantage is found by comparing the:

The terms of trade is defined as:

Countries should specialize and import goods in which they have a comparative disadvantage.

The original comparative advantage model that used the relative abundance of factors of production to explain comparative advantage assumed that countries: