Exam 17: International Trade

Use the following to answer question(s): Production Possibilities Curve -(Exhibit: Production Possibilities Curve) Which of the following statements is true?

Given that two countries (A and B) each specialize in the production of one good and voluntarily trade it for the other country's good, then:

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

An example of a tariff is a:

A new domestic industry with a potential for economies of scale is a(n):

If the executives of the U.S.silicon-chip industry lobby Congress for protection from imports on the grounds that several thousand workers would lose their jobs if there were a reduction in domestic silicon-chip production, they are using the:

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) Opportunity costs in the two countries can be determined by comparing the _______ of their respective _______curves.

Use the following to answer question(s): The Production of Tires and Radios -(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated.Further assume that the only input is labor and that it remains fully employed.We see from the table that Country X:

Use the following to answer question(s): Production Possibilities Curve -(Exhibit: Production Possibilities Curve) To move from point B to point C, _______ must be ________ to produce _______.

The rate at which a country can trade domestic products for imported products is its:

If Japan levies tariffs on U.S.goods entering Japan, this will tend in the short run to:

Suppose that the United States imposes a tariff of $500 per car on Japanese cars.The most likely effect will be to increase the price of cars in the United States by:

Assume that the United States imposes a quota on Scottish wool suits.Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of suits in the United States will most likely _______ , and the equilibrium price of suits in Scotland will most likely _______ .

Dutiable imports are those on which the government imposes a(n):

An example of a nontariff barrier is a:

In general, trade restrictions penalize domestic producers and foreign consumers.

Use the following to answer question(s): Production Possibilities Schedule for Two Commodities -(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.If there were unrestricted trade and specialization according to comparative advantage:

Use the following to answer question(s): Production Possibilities Schedule for Two Commodities -(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.The cost to the United States of producing an additional unit of Y is _______ units of X.

Product _______ may create _______ trade between countries, particularly in those with similar relative factor endowments.

A quota is one example of a protectionist policy.