Exam 13: International Trade

Below is production possibilities data for the countries of Mental and Etheric. -Refer to the information above to answer this question.What is the opportunity cost of one unit of soya milk in Mental?

What is the difference between a tariff and a quota?

Table 13.14 shows the output of kumquats per month. -Members of NAFTA include:

Suppose that originally the average price of Happy Island's exports was 180,and the average price of its imports was 120.Now,the price of its exports drops to 160,and the price of its imports drops to 100.What effect will this have on Happy Island's terms of trade?

Table 13.14 shows the output of kumquats per month. -All of the following,except one,are promoted by the IMF.Which is the exception?

Below is production possibilities data for the countries of Mental and Etheric. -Refer to the information above to answer this question.In which product should Mental specialize and export?

Some commentators have suggested that the Canadian film industry needs government assistance to allow it to compete with Hollywood.Which argument against free trade is being suggested?

All the following,except one,are examples of trade restrictions.Which is the exception?

Below is the productivity per worker (kilos per day)in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people. -Refer to the data above to answer this question.If each country is self-sufficient in the two products and each employs half of its working population in each industry,what is the total combined output that they are capable of producing?

Table 13.14 shows the output of kumquats per month. -Suppose the following domestic demand and supply schedule for Canada's HDTV industry: a)In the absence of free trade,what is the equilibrium price and quantity traded domestically for Canada's HDTV industry? b)Suppose the international price for a laptop is $2,300.Will Canada export or import HDTVs? How many units? c)Now suppose the Canadian government limits the number of imported HDTVs to 2,000 units.How many units will Canada import and what will be the equilibrium price?

Table 13.14 shows the output of kumquats per month. -Suppose the following demand and supply schedule for Canada's tire industry: a)In the absence of free trade,what is the equilibrium price and quantity traded for Canada's tire industry? Suppose the international price for a computer is $60. b)Will Canadian consumers benefit? Explain. c)Will Canadian producers benefit? Explain

Table 13.14 shows the output of kumquats per month. -If a country's trading possibilities curve lies to the right of its production possibilities curve,there are no gains from trade.

-Refer to above table to answer this question.Supposing that there are 200 workers in Rings,how many broomsticks could be produced if 200 swords were produced?

What is the meant by the terms of trade?

The chart below refers to the economy of Smith Island. -Refer to the graph above to answer this question.How much is Smith Island producing at the world (free trade)price of cloth?

Below is the total market demand and supply of wine for France and Germany.Quantities are in millions of litres per month. -Refer to the information above to answer this question.Who loses from free trade in wine between France and Germany?

What does it mean if the opportunity costs differ between two countries?

Table 13.14 shows the output of kumquats per month. -Suppose the following domestic demand and supply schedule for Canada's computer industry: a)In the absence of free trade,what is the equilibrium price and quantity traded for Canada's computers? Suppose the international price for a computer is $1200. b)Will Canadian consumers benefit? Explain. c)Will Canadian producers benefit? Explain

Table 13.14 shows the output of kumquats per month. -Suppose that the productivity per worker in the apple juice and grape juice industries of Westlake and Eastlake are as follows: a)What is the opportunity cost of 1 litre of apple juice for Westlake? For Eastlake? b)What is the opportunity cost of 1 litre of grape juice for Westlake? For Eastlake?

-Refer to above table to answer this question.What is the cost of producing one broomstick in Potter?