Question 1

-Refer to Exhibit 34-4.The opportunity cost of one unit of good A is __________ for country 1 and __________ for country 2.

Accepted Answer

A)  20B; 15B 
B)  2B; 1B 
C)  40B; 15B 
D)  1/2B; 1B 
E)  1/20B; 1/15B 
A)  20B; 15B 
B)  2B; 1B 
C)  40B; 15B 
D)  1/2B; 1B 
E)  1/20B; 1/15B

Question 2

-Refer to Exhibit 34-9.Which of the following statements is true?

Accepted Answer

A)  Country X has a comparative advantage in the production of good A. 
B)  Country Y has a comparative advantage in the production of good B. 
C)  It would be better for country A to specialize in (the production of)and trade good A than to specialize in and trade good B. 
D)  a and c 
E)  a,b,and c 
A)  Country X has a comparative advantage in the production of good A. 
B)  Country Y has a comparative advantage in the production of good B. 
C)  It would be better for country A to specialize in (the production of)and trade good A than to specialize in and trade good B. 
D)  a and c 
E)  a,b,and c

Question 3

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).Consumers' surplus is equal to the area __________ while producers' surplus is equal to the area __________.

Accepted Answer

A)  A + B + C + D + E + F; G + H + I + J + K 
B)  A + C + G; B + D + E + F 
C)  A + B; C + G 
D)  A + C; G 
E)  A + C; B + D + E + F 
A)  A + B + C + D + E + F; G + H + I + J + K 
B)  A + C + G; B + D + E + F 
C)  A + B; C + G 
D)  A + C; G 
E)  A + C; B + D + E + F

Question 4

The law of comparative advantage can be used to explain why many couples divide up their household duties along gender lines.

Accepted Answer

A) True 
 B)False

Question 5

-Refer to Exhibit 34-7.The world price of good X is $15.If imports of good X are legally limited to 30 units,the price of X in the United States would be

Accepted Answer

A)  $20. 
B)  $25. 
C)  $30. 
D)  $35. 
E)  none of the above 
A)  $20. 
B)  $25. 
C)  $30. 
D)  $35. 
E)  none of the above

Question 6

7/20/2017 11:13 AM
Exhibit 34-11
  
-Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

Accepted Answer

A)  BCFE. 
B)  BCGE. 
C)  DBCG. 
D)  DBCF. 
E)  none of the above 
A)  BCFE. 
B)  BCGE. 
C)  DBCG. 
D)  DBCF. 
E)  none of the above

Question 7

Consumers' surplus is the difference between the price

Accepted Answer

A)  sellers receive for a good and the maximum price they would have paid for the good. 
B)  sellers receive for a good and the minimum price for which they could have sold the good. 
C)  buyers pay for a good and the maximum price they would have paid for the good. 
D)  buyers pay for a good and the minimum price for which they would have sold the good. 
A)  sellers receive for a good and the maximum price they would have paid for the good. 
B)  sellers receive for a good and the minimum price for which they could have sold the good. 
C)  buyers pay for a good and the maximum price they would have paid for the good. 
D)  buyers pay for a good and the minimum price for which they would have sold the good.

Question 8

As discussed in the textbook,various studies in the past have shown that there are ________________ degrees of separation between any two people in the world.Social media would be expected to _______________ the number of degrees of separation,making the world ________________.

Accepted Answer

A)  5 to 7; reduce; "smaller" 
B)  8 to 10; reduce; "bigger" 
C)  5 to 7; raise; "bigger" 
D)  8 to 10; raise; "bigger" 
A)  5 to 7; reduce; "smaller" 
B)  8 to 10; reduce; "bigger" 
C)  5 to 7; raise; "bigger" 
D)  8 to 10; raise; "bigger"

Question 9

Dumping occurs when a firm sells goods abroad at a price below their cost and below the price charged in their domestic market.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a major import for the United States?

Accepted Answer

A)  corn 
B)  soybeans 
C)  coal 
D)  fish 
E)  none of the above 
A)  corn 
B)  soybeans 
C)  coal 
D)  fish 
E)  none of the above

Question 11

-Refer to Exhibit 34-4.The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2.

Accepted Answer

A)  20A; 15A 
B)  2A; 1A 
C)  40A; 15A 
D)  1/2A; 1A 
E)  1/40A; 1/15B 
A)  20A; 15A 
B)  2A; 1A 
C)  40A; 15A 
D)  1/2A; 1A 
E)  1/40A; 1/15B

Question 12

-Refer to Exhibit 34-6.The opportunity cost of 1 unit of wine in terms of units of cheese is __________ for country A.

Accepted Answer

A)  1/2 
B)  2 
C)  10 
D)  5 
E)  none of the above 
A)  1/2 
B)  2 
C)  10 
D)  5 
E)  none of the above

Question 13

Producers' surplus is the difference between the price

Accepted Answer

A)  sellers receive for a good and the maximum price they would have paid for the good. 
B)  sellers receive for a good and the minimum price for which they could have sold the good. 
C)  buyers pay for a good and the maximum price they would have paid for the good. 
D)  buyers pay for a good and the minimum price for which they would have sold the good. 
A)  sellers receive for a good and the maximum price they would have paid for the good. 
B)  sellers receive for a good and the minimum price for which they could have sold the good. 
C)  buyers pay for a good and the maximum price they would have paid for the good. 
D)  buyers pay for a good and the minimum price for which they would have sold the good.

Question 14

-Refer to Exhibit 34-9.In the no specialization-no trade case,suppose country X produces and consumes 100 units of good A and 20 units of good B.Country Y produces and consumes 20 units of good A and 60 units of good B.If the two countries specialize and trade,and the actual amounts traded are 125 units of good A for 25 units of good B,how many more units of good A will country X consume by specializing and trading?

Accepted Answer

A)  75 
B)  25 
C)  15 
D)  105 
E)  50 
A)  75 
B)  25 
C)  15 
D)  105 
E)  50

Question 15

-Refer to Exhibit 34-10.Jason's opportunity cost of mowing the lawn is

Accepted Answer

A)  0.50 clean houses. 
B)  2.40 clean houses. 
C)  2.00 clean houses. 
D)  0.60 clean houses. 
A)  0.50 clean houses. 
B)  2.40 clean houses. 
C)  2.00 clean houses. 
D)  0.60 clean houses.

Question 16

-Refer to Exhibit 34-1.If country A is to specialize in the production of one of the two goods (and then trade that good with Country B),which good should it be and why? If Country B is to specialize in the production of one of the two goods (and then trade that good to with Country A),which good should it be and why?

Accepted Answer

A)  Good X for Country A because it is the higher opportunity cost producer of good X; good Y for Country B because it is the higher opportunity cost producer of good Y. 
B)  Good Y for Country A because it is the lower opportunity cost producer of good Y; good X for Country B because it is the lower opportunity cost producer of good X. 
C)  Good X for Country A because it is the lower opportunity cost producer of good X; good Y for Country B because it is the lower opportunity cost producer of good Y. 
D)  Good Y for Country A because it is the higher opportunity cost producer of good Y; good X for Country B because it is the higher opportunity cost producer of good X. 
A)  Good X for Country A because it is the higher opportunity cost producer of good X; good Y for Country B because it is the higher opportunity cost producer of good Y. 
B)  Good Y for Country A because it is the lower opportunity cost producer of good Y; good X for Country B because it is the lower opportunity cost producer of good X. 
C)  Good X for Country A because it is the lower opportunity cost producer of good X; good Y for Country B because it is the lower opportunity cost producer of good Y. 
D)  Good Y for Country A because it is the higher opportunity cost producer of good Y; good X for Country B because it is the higher opportunity cost producer of good X.

Question 17

Major U.S.exports include automobiles and aircraft.

Accepted Answer

A) True 
 B)False

Question 18

Describe who benefits and who loses from tariffs and from quotas.What is the major difference between the effects of a quota and the effects of a tariff?

Accepted Answer

Tariffs and quotas both result in a decr

Question 19

On an aggregate level,free trade produces a net __________ and restricted trade produces a net __________.

Accepted Answer

A)  loss; loss also 
B)  benefit; benefit also 
C)  benefit; loss 
D)  loss; benefit 
A)  loss; loss also 
B)  benefit; benefit also 
C)  benefit; loss 
D)  loss; benefit

Question 20

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,consumers' surplus equals the area of

Accepted Answer

A)  PW DE. 
B)  PW AB. 
C)  PW AC. 
D)  PW PNBD. 
A)  PW DE. 
B)  PW AB. 
C)  PW AC. 
D)  PW PNBD.

Exam 21: International Finance

-Refer to Exhibit 34-4.The opportunity cost of one unit of good A is __________ for country 1 and __________ for country 2.

-Refer to Exhibit 34-9.Which of the following statements is true?

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).Consumers' surplus is equal to the area __________ while producers' surplus is equal to the area __________.

The law of comparative advantage can be used to explain why many couples divide up their household duties along gender lines.

-Refer to Exhibit 34-7.The world price of good X is $15.If imports of good X are legally limited to 30 units,the price of X in the United States would be

7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

Consumers' surplus is the difference between the price

As discussed in the textbook,various studies in the past have shown that there are ________________ degrees of separation between any two people in the world.Social media would be expected to _______________ the number of degrees of separation,making the world ________________.

Dumping occurs when a firm sells goods abroad at a price below their cost and below the price charged in their domestic market.

Which of the following is a major import for the United States?

-Refer to Exhibit 34-4.The opportunity cost of one unit of good B is __________ for country 1 and __________ for country 2.

-Refer to Exhibit 34-6.The opportunity cost of 1 unit of wine in terms of units of cheese is __________ for country A.

Producers' surplus is the difference between the price

-Refer to Exhibit 34-10.Jason's opportunity cost of mowing the lawn is

Major U.S.exports include automobiles and aircraft.

Describe who benefits and who loses from tariffs and from quotas.What is the major difference between the effects of a quota and the effects of a tariff?

On an aggregate level,free trade produces a net __________ and restricted trade produces a net __________.

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,consumers' surplus equals the area of

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

-Refer to Exhibit 34-4.The opportunity cost of one unit of good A is for country 1 and for country 2.

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).Consumers' surplus is equal to the area while producers' surplus is equal to the area .

7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

As discussed in the textbook,various studies in the past have shown that there are ________ degrees of separation between any two people in the world.Social media would be expected to _ the number of degrees of separation,making the world __________.

-Refer to Exhibit 34-4.The opportunity cost of one unit of good B is for country 1 and for country 2.

On an aggregate level,free trade produces a net and restricted trade produces a net .

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,consumers' surplus equals the area of