Answer the question on the basis of the following production possibilities data for Gamma and Sigma.All data are in tons. Gamma's production possibilities: $\begin{array}{llcc} &\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\ \text { Tea } &120&90&60&30&0\\ \text { Pots}&0&30&60&90&120 \end{array}$ Sigma's production possibilities: $\begin{array}{llcc} &\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\ \text { Tea } &120&90&60&30&0\\ \text { Pots}&0&30&60&90&120 \end{array}$ Refer to the given data.What are the limits of the terms of trade between Gamma and Sigma?

A) 1 tea = 2 pots to 1 tea = 6 pots B) 1 tea = 3 pots to 1 tea = 6 pots C) 1 tea = 2 pots to 1 tea = 3.5 pots D) 1 tea = 1 pot to 1 tea = 3 pots A) 1 tea = 2 pots to 1 tea = 6 pots B) 1 tea = 3 pots to 1 tea = 6 pots C) 1 tea = 2 pots to 1 tea = 3.5 pots D) 1 tea = 1 pot to 1 tea = 3 pots D

Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: $\begin{array}{c} \quad\quad\quad\underline{ \text {Latalia's Production Possibilities }}\\ \begin{array}{lll} \\ \text {Pork (Tons)}\\ \text {Beans (Tons)} \end{array} \begin{array}{c} \underline{\text {A}}\\ 4\\ 0 \end{array} \begin{array}{c} \underline{\text {B}}\\ 3\\ 5 \end{array} \begin{array}{c} \underline{\text {C}}\\ 2\\ 10 \end{array} \begin{array}{c} \underline{\text {D}}\\ 1\\ 15 \end{array} \begin{array}{c} \underline{\text {E}}\\ 0\\ 20 \end{array} \end{array}$ $\begin{array}{c} \quad\quad\quad\underline{\text {Trombonia's Production Possibilities }}\\ \begin{array}{lll} \\ \text {Pork (Tons)}\\ \text {Beans (Tons)} \end{array} \begin{array}{c} \underline{\text {A}}\\ 8\\ 0 \end{array} \begin{array}{c} \underline{\text {B}}\\ 6\\ 6 \end{array} \begin{array}{c} \underline{\text {C}}\\ 4\\ 12 \end{array} \begin{array}{c} \underline{\text {D}}\\ 2\\ 18 \end{array} \begin{array}{c} \underline{\text {E}}\\ 0\\ 24 \end{array} \end{array}$ Refer to the tables.If these two nations specialize on the basis of comparative advantage:

A) Trombonia will produce beans and Latalia will produce pork. B) Trombonia will produce both beans and pork. C) Latalia will produce both beans and pork and Trombonia will produce neither. D) Latalia will produce beans and Trombonia will produce pork. A) Trombonia will produce beans and Latalia will produce pork. B) Trombonia will produce both beans and pork. C) Latalia will produce both beans and pork and Trombonia will produce neither. D) Latalia will produce beans and Trombonia will produce pork. D

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\ \text { Supplied } \\ \text { (Domestic) } \end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\ \text { Demanded } \\ \text { (Domestic) } \end{array} \\ 12 & \$ 5 & 2 \\ 10 & 4 & 4 \\ 7 & 3 & 7 \\ 4 & 2 & 11 \\ 1 & 1 & 16 \end{array}$ Refer to the given data.The total amount of revenue collected from a $1-per-unit tariff on this product will be:

A) $22. B) $8. C) $7. D) $14. A) $22. B) $8. C) $7. D) $14.

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\ \text { Supplied } \\ \text { (Domestic) } \end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\ \text { Demanded } \\ \text { (Domestic) } \end{array} \\ 12 & \$ 5 & 2 \\ 10 & 4 & 4 \\ 7 & 3 & 7 \\ 4 & 2 & 11 \\ 1 & 1 & 16 \end{array}$ Refer to the given data.If the economy was opened to free trade and the world price of $1 prevailed,the price and quantity sold of this product would be:

A) $1 and 1 unit. B) $1 and 16 units. C) $3 and 7 units. D) $2 and 11 units. A) $1 and 1 unit. B) $1 and 16 units. C) $3 and 7 units. D) $2 and 11 units.

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\ \text { Supplied } \\ \text { (Domestic) } \end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\ \text { Demanded } \\ \text { (Domestic) } \end{array} \\ 12 & \$ 5 & 2 \\ 10 & 4 & 4 \\ 7 & 3 & 7 \\ 4 & 2 & 11 \\ 1 & 1 & 16 \end{array}$ Refer to the given data.With a $1-per-unit tariff,the quantities sold by foreign and domestic producers respectively will be:

A) 1 unit and 15 units. B) 7 units and 4 units. C) 11 units and 4 units. D) indeterminate. A) 1 unit and 15 units. B) 7 units and 4 units. C) 11 units and 4 units. D) indeterminate.

Answer the question on the basis of the following production possibilities data for two countries,Alpha and Beta,which have populations of equal size. $\begin{array}{c} \quad\quad\underline{\text { Alpha's Production Possibilities }}\\ \begin{array}{lll} \\ \text {Fish (Tons)}\\ \text {Chips (Tons)} \end{array} \begin{array}{c} \underline{\text {A }}\\ 80 \\ 0 \end{array} \begin{array}{c} \underline{\text {B }}\\ 60 \\ 5 \end{array} \begin{array}{c} \underline{\text {C }}\\ 40 \\ 10 \end{array} \begin{array}{c} \underline{\text {D }}\\ 20 \\ 15 \end{array} \begin{array}{c} \underline{\text {E }}\\ 0 \\ 20 \end{array} \end{array}$ $\begin{array}{c} \quad\quad\underline{\text { Beta's Production Possibilities }}\\ \begin{array}{lll} \\ \text {Fish (Tons)}\\ \text {Chips (Tons)} \end{array} \begin{array}{c} \underline{\text {A }}\\ 240 \\ 0 \end{array} \begin{array}{c} \underline{\text {B }}\\ 180 \\ 10 \end{array} \begin{array}{c} \underline{\text {C }}\\ 120 \\ 20 \end{array} \begin{array}{c} \underline{\text {D }}\\ 60 \\ 30 \end{array} \begin{array}{c} \underline{\text {E }}\\ 0 \\ 40 \end{array} \end{array}$ Refer to the given data.The domestic opportunity cost of:

A) producing a ton of chips in Alpha is 1/5 of a ton of fish. B) producing a ton of chips in Beta is 6 tons of fish. C) catching a ton of fish in Alpha is 5 tons of chips. D) catching a ton of fish in Beta is 6 tons of chips. A) producing a ton of chips in Alpha is 1/5 of a ton of fish. B) producing a ton of chips in Beta is 6 tons of fish. C) catching a ton of fish in Alpha is 5 tons of chips. D) catching a ton of fish in Beta is 6 tons of chips.

Exam 39: International Trade

Answer the question on the basis of the following production possibilities data for Gamma and Sigma.All data are in tons. Gamma's production possibilities: Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities: Tea 120 90 60 30 0 Pots 0 30 60 90 120 Refer to the given data.What are the limits of the terms of trade between Gamma and Sigma?

Free

(Multiple Choice)

4.9/5

(81)

Question 1

Correct Answer:

Verified

D

Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: Pork (Tons) Beans (Tons) 4 0 3 5 2 10 1 15 0 20 Pork (Tons) Beans (Tons) 8 0 6 6 4 12 2 18 0 24 Refer to the tables.If these two nations specialize on the basis of comparative advantage:

Free

(Multiple Choice)

4.9/5

(80)

Question 2

Correct Answer:

Verified

D

Economists prefer free trade to tariffs,and prefer tariffs to import quotas.

Free

(True/False)

4.8/5

(72)

Question 3

Correct Answer:

Verified

True

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Quantity Supplied (Domestic) Price Quantity Demanded (Domestic) 12 \ 5 2 10 4 4 7 3 7 4 2 11 1 1 16 Refer to the given data.The total amount of revenue collected from a $1-per-unit tariff on this product will be:

(Multiple Choice)

4.8/5

(71)

Question 4

In the past,Canada has agreed to set an upper limit on the total amount of softwood lumber sold to the United States.This is an example of a(n):

(Multiple Choice)

4.8/5

(75)

Question 5

Critics of the World Trade Organization (WTO)say that liberalized world trade does all of the following except:

(Multiple Choice)

4.9/5

(71)

Question 6

Differences in production efficiencies among nations in producing a particular good result from:

(Multiple Choice)

4.8/5

(79)

Question 7

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Quantity Supplied (Domestic) Price Quantity Demanded (Domestic) 12 \ 5 2 10 4 4 7 3 7 4 2 11 1 1 16 Refer to the given data.If the economy was opened to free trade and the world price of $1 prevailed,the price and quantity sold of this product would be:

(Multiple Choice)

4.9/5

(91)

Question 8

Answer the question on the basis of the following information.Assume that by devoting all its resources to the production of X,nation Alpha can produce 20 units of X.By devoting all its resources to Y,Alpha can produce 30Y.Comparable figures for nation Beta are 60X and 40Y. Refer to the given information.There is no basis for trade between Alpha and Beta because Beta has an absolute advantage in the production of both goods.

(True/False)

4.8/5

(80)

Question 9

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Quantity Supplied (Domestic) Price Quantity Demanded (Domestic) 12 \ 5 2 10 4 4 7 3 7 4 2 11 1 1 16 Refer to the given data.With a $1-per-unit tariff,the quantities sold by foreign and domestic producers respectively will be:

(Multiple Choice)

4.9/5

(78)

Question 10

Which of the following statements is false?

(Multiple Choice)

4.9/5

(96)

Question 11

The organization created to oversee the provisions of multilateral trade agreements,resolve disputes under the international trade rules,and meet periodically to consider further trade liberalization is called the:

(Multiple Choice)

4.8/5

(75)

Question 12

Frederic Bastiat's Petition of the Candlemakers most directly refutes which of the following arguments for protectionism?

(Multiple Choice)

4.8/5

(72)

Question 13

In terms of absolute dollar volume,the top 3 leaders in world exports are:

(Multiple Choice)

4.8/5

(88)

Question 14

International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.

(True/False)

4.7/5

(82)

Question 15

Answer the question on the basis of the following information about the cost ratios for two products-fish (F)and chicken (C)-in countries Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world. Singsong: 1F = 2C Harmony: 1F = 4C Refer to the given information.In Singsong the domestic real cost of each chicken:

(Multiple Choice)

4.9/5

(80)

Question 16

The World Trade Organization (WTO)is an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.

(True/False)

4.9/5

(89)

Question 17

Which of the following arguments for trade protection contends that new domestic industries need support to establish themselves and survive?

(Multiple Choice)

4.9/5

(81)

Question 18

Answer the question on the basis of the following production possibilities data for two countries,Alpha and Beta,which have populations of equal size. Fish (Tons) Chips (Tons) 80 0 60 5 40 10 20 15 0 20 Fish (Tons) Chips (Tons) 240 0 180 10 120 20 60 30 0 40 Refer to the given data.The domestic opportunity cost of:

(Multiple Choice)

4.9/5

(79)

Question 19

(Consider This)According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

(Multiple Choice)

4.7/5

(79)

Question 20

Economists prefer free trade to tariffs,and prefer tariffs to import quotas.

In the past,Canada has agreed to set an upper limit on the total amount of softwood lumber sold to the United States.This is an example of a(n):

Critics of the World Trade Organization (WTO)say that liberalized world trade does all of the following except:

Differences in production efficiencies among nations in producing a particular good result from:

Which of the following statements is false?

The organization created to oversee the provisions of multilateral trade agreements,resolve disputes under the international trade rules,and meet periodically to consider further trade liberalization is called the:

Frederic Bastiat's Petition of the Candlemakers most directly refutes which of the following arguments for protectionism?

In terms of absolute dollar volume,the top 3 leaders in world exports are:

International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.

The World Trade Organization (WTO)is an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.

Which of the following arguments for trade protection contends that new domestic industries need support to establish themselves and survive?

(Consider This)According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters