Exam 28: International Trade

If the United States could produce 1/2 ton of potatoes or 1 ton of wheat per worker per year,while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year,the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____.

When a country allows trade and becomes an exporter of goods consumers gain more than producers lose.

Which of the following might lead a nation to engage in international trade?

Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year,but Lavaland can produce 36 units of food per year or 18 units of clothing.Which of the following is true?

Import tariffs in the United States are likely to reduce U.S.exports,both because of the resulting decrease in foreign earnings of dollars from exports to the United States and because of the likelihood of increases in other countries' import restrictions against U.S.goods.

A new U.S.tariff on imported steel would be likely to:

If nations begin to expand their specialization in production for the purpose of trade,

The infant industry argument for protectionism suggest that an industry must be protected in the early stages of its development so that:

A country with relatively abundant supplies of labor is unlikely to have a comparative advantage in the production of labor intensive goods.

A tariff on a particular good does which of the following?

A tariff on shoes would lead to:

A U.S.tariff on French wine will likely benefit U.S.wine producers and the U.S.government (by increasing tax revenue),but harm U.S.wine drinkers and French wine producers.

The United States is the world's leading grain-producing nation.Exporting grain causes the:

Exhibit 28-5 Refer to Exhibit 28-5.The change in total surplus from free trade is area:

Assume that the U.S.can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames.Based on this information,which of the following is true?

Protectionist legislation is often passed because:

Which of the following is one reason why trade makes all parties better off?

Exhibit 28-1 Alpha can produce either 18 tons of oranges or 9 tons of apples in a year,while Omega can produce either 16 tons of oranges or 4 tons of apples. Refer to Exhibit 28-1.The opportunity costs of producing 1 ton of oranges for Alpha and Omega,respectively,are:

When a country allows trade and becomes an importer of goods,producers gain more than consumers lose.

The net loss in welfare from a quota is proportionately larger than for a tariff because: