Exam 17: International Trade

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 is no trade between the United States and Canada, the costs of X and Y are such that:

The Case in Point on trade in water suggests that _____ trade in water appears to be a growth industry.

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.Assume that there is unrestricted trade and complete specialization.According to comparative advantage, country:

The relative costs of two goods produced by two countries can be determined by comparing the slopes of their production possibilities curves at their respective current levels of production.

An example of a quota is a:

If the United States, at the point where it is currently producing, must give up the production of 500 bicycles (B) to produce 20 additional tractors (T) with the same resources, the opportunity cost of producing 5 tractors is _______ bicycles.

If the executives of the U.S.silicon-chip industry lobby Congress for protection from imports on the grounds that foreign producers are selling silicon chips in the United States below production costs, they are using the:

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?

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.The cost to country X of producing an additional tire is _______ radio(s).

If the executives of the U.S.silicon-chip industry lobby Congress for protection from imports on the grounds that the military should have an unrestricted domestic supply of silicon chips, they are using the:

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) If the final terms of trade are 1 computer = 1 car, then:

An example of a voluntary export restriction is a:

The net benefits a nation receives from free trade are called the costs of trade.

If one country has the ability to produce all goods and services more efficiently than any other country, then:

The single most important source of protectionist policies against trade, according to the text, is the:

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

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) The slopes of the production possibilities curves (PPCs) in the two countries are:

If a country has a comparative advantage in the production of a good:

A tax imposed by a government on imported goods or services is a:

If two countries find that neither has a comparative advantage in the production of any good or service: