Exam 17: International Trade

If the executives of the U.S.silicon-chip industry lobby Congress for protection from imports on the grounds that foreign nations create more pollution in silicon-chip production than domestic producers, they are using the:

A tariff is a tax restriction on imported goods.

The United States can produce both grain and oil more efficiently than Mexico can, but the United States can produce grain more efficiently than oil.Therefore, according to _______ , a basis for trade exists between the two countries.

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.A comparative advantage exists in:

The _______ model lays out the _______ available to the economy.

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 false?

According to the infant industry argument for import protection, such protection is needed because:

When a domestic country exports goods to and imports goods from a foreign country, in the short run domestic:

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 Canada of producing an additional unit of Y is _______ unit(s) of X.

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) Before trade in Omegaland, ________ car could exchange for ________ computer.

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.We see from the table that Canada:

A tax on a foreign import is called a quota.

The process in which an exporter sells a good to a country at a price below its own production costs is:

Use the following to answer question(s): Production Possibilities for Machinery and Petroleum -(Exhibit: Production Possibilities for Machinery and Petroleum) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of machinery each country would have to forgo in order to produce the additional petroleum indicated.Based on the information in the exhibit, it is true that:

The slope of the production possibilities curve is positive if there is free trade.

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland -(Exhibit: Production Possibilities in Alphaland and Omegaland) At point A in Alphaland, ________ additional car(s) cost(s) _______ computers, and at point A? in Omegaland, _______ additional car(s) cost(s) _______ computer(s).

In the importing country, the most likely effect of a tariff on a good is to:

Nontariff barriers often take the form of:

Opportunities created by trade are a result of comparative advantage.

Which of the following statements is true?