Question 1

All the following,except one,are forms of protectionism.Which is the exception?

Accepted Answer

A) Import subsidies. 
B) Tariffs. 
C) Exchange controls. 
D) Quotas. 
A) Import subsidies. 
B) Tariffs. 
C) Exchange controls. 
D) Quotas.

Question 2

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
   Mexico's Production Possibilities
(Output in millions of bushels per month)
   Output Before Trade
(Output in millions of bushels per month)
  
-Refer to the information above to answer this question.In what product does Canada and Mexico have a comparative advantage?

Accepted Answer

A) Neither country has a comparative advantage in either rye or beans. 
B) Canada has a comparative advantage in rye but neither country has a comparative advantage in beans. 
C) Canada has a comparative advantage in rye and Mexico has a comparative advantage in beans. 
D) Canada has a comparative advantage in beans and Mexico has a comparative advantage in rye. 
A) Neither country has a comparative advantage in either rye or beans. 
B) Canada has a comparative advantage in rye but neither country has a comparative advantage in beans. 
C) Canada has a comparative advantage in rye and Mexico has a comparative advantage in beans. 
D) Canada has a comparative advantage in beans and Mexico has a comparative advantage in rye.

Question 3

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.Assume that France and Germany enter into a free trade agreement (and there are no extra transportation costs,etc. )what will Germany do?

Accepted Answer

A) Export 4 million litres of wine per month. 
B) Export 1 million litres of wine per month. 
C) Import 4 million litres of wine per month. 
D) Import 1 million litres of wine per month. 
A) Export 4 million litres of wine per month. 
B) Export 1 million litres of wine per month. 
C) Import 4 million litres of wine per month. 
D) Import 1 million litres of wine per month.

Question 4

Table 13.14 shows the output of kumquats per month.
  
-If comparative cost is the basis for trade,why are the developing nations,which have very low wage rates,not the world's greatest trading nations?

Accepted Answer

It is not the cost of the factors of pro

Question 5

Below is some data on the output of kumquats in Smith Island.
  
-Refer to information above to answer this question.If Smith Island imposed a tariff on kumquats of $3 per kilo,what would be the equilibrium price and quantity traded?

Accepted Answer

A) $5 and 80. 
B) $6 and 70. 
C) $12 and 130. 
D) $12 and 0. 
E) $12 and 70. 
A) $5 and 80. 
B) $6 and 70. 
C) $12 and 130. 
D) $12 and 0. 
E) $12 and 70.

Question 6

Refer to the data above to answer this question.Suppose that initially each country allocated 5 million of its population to the rice industry,the rest being employed in the beer industry.If they now decide to totally specialize in the products in which each has a comparative advantage,what will be the resulting gains from trade?

Accepted Answer

A) 0 rice and 25 beer. 
B) 1 rice and 1 beer. 
C) 35 rice and 35 beer. 
D) 21 rice and 0 beer. 
A) 0 rice and 25 beer. 
B) 1 rice and 1 beer. 
C) 35 rice and 35 beer. 
D) 21 rice and 0 beer.

Question 7

On what basis are the gains from trade divided between countries?

Accepted Answer

A) According to the terms of trade. 
B) According to international trade agreements. 
C) According to the quantity of resources possessed by each. 
D) According to each country's comparative advantage. 
A) According to the terms of trade. 
B) According to international trade agreements. 
C) According to the quantity of resources possessed by each. 
D) According to each country's comparative advantage.

Question 8

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
  
-Refer to the graph above to answer this question.After the introduction of a $20 tariff,what is the volume of imports into Rysen III?

Accepted Answer

A) 100 tons. 
B) 200 tons. 
C) 300 tons. 
D) 400 tons. 
E) 0. 
A) 100 tons. 
B) 200 tons. 
C) 300 tons. 
D) 400 tons. 
E) 0.

Question 9

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
   Mexico's Production Possibilities
(Output in millions of bushels per month)
   Output Before Trade
(Output in millions of bushels per month)
  
-Refer to the information above to answer this question.If each country totally specializes according to its comparative advantage and the terms of trade are 1 bushel of beans for 1.25 bushels of rye,what will be the gains from trade?

Accepted Answer

A) 60 bushels of rye and 100 bushels of beans. 
B) 25 bushels of rye and 10 bushels of beans. 
C) 45 bushels of rye and 10 bushels of beans. 
D) There are no gains from trade. 
A) 60 bushels of rye and 100 bushels of beans. 
B) 25 bushels of rye and 10 bushels of beans. 
C) 45 bushels of rye and 10 bushels of beans. 
D) There are no gains from trade.

Question 10

Table 13.14 shows the output of kumquats per month.
  
-Define tariffs and Quotas,and explain the similarities and differences between them.

Accepted Answer

Tariffs are taxes imposed by the governm

Question 11

Refer to the data above to answer this question.Suppose that each country allocates 5 million of its population to the rice industry,the rest being employed in the beer industry.What is their (joint)total production?

Accepted Answer

A) 20 rice and 10 beer. 
B) 48 rice and 24 beer. 
C) 35 rice and 35 beer. 
D) 21 rice and 21 beer. 
A) 20 rice and 10 beer. 
B) 48 rice and 24 beer. 
C) 35 rice and 35 beer. 
D) 21 rice and 21 beer.

Question 12

Table 13.14 shows the output of kumquats per month.
  
-A country has a comparative advantage over another only if it is able to produce all products more cheaply.

Accepted Answer

A) True 
 B)False

Question 13

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
  
-Refer to the graph above to answer this question.Suppose that the government introduces a quota of 400 on imports of mustard seeds,what will be the new price?

Accepted Answer

A) $40. 
B) $100. 
C) $120. 
D) $140. 
E) Cannot be determined. 
A) $40. 
B) $100. 
C) $120. 
D) $140. 
E) Cannot be determined.

Question 14

All of the following except one are initials of international trade organizations.Which is the exception?

Accepted Answer

A) WTO. 
B) RIF. 
C) OECD. 
D) EU. 
E) APEC. 
A) WTO. 
B) RIF. 
C) OECD. 
D) EU. 
E) APEC.

Question 15

What are voluntary export restrictions?

Accepted Answer

A) A restriction placed on the importation of foreign products. 
B) An agreement by an exporting country to restrict the amount of exports to another country. 
C) Government restrictions limiting the amount of foreign currency which can be obtained. 
D) A limit imposed on the production or sale of a product. 
A) A restriction placed on the importation of foreign products. 
B) An agreement by an exporting country to restrict the amount of exports to another country. 
C) Government restrictions limiting the amount of foreign currency which can be obtained. 
D) A limit imposed on the production or sale of a product.

Question 16

Table 13.14 shows the output of kumquats per month.
  
-Does the principle of comparative advantage tell us how the gains from trade will be distributed? Explain.

Accepted Answer

No,the principle of comparative advantag

Question 17

What term describes the ability to produce something at a lower opportunity cost than others are able to?

Accepted Answer

A) Increased production possibilities. 
B) Factor endowments. 
C) Increasing returns to scale. 
D) Comparative advantage. 
A) Increased production possibilities. 
B) Factor endowments. 
C) Increasing returns to scale. 
D) Comparative advantage.

Question 18

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

Accepted Answer

A) $40. 
B) $50. 
C) $60. 
D) $80. 
A) $40. 
B) $50. 
C) $60. 
D) $80.

Question 19

Suppose that the productivity per worker in the Good X and Good Y industries of Country A and Country B are as follows:
   In order for there to be no gains from trade,what would the Country B productivity per worker in the Good X industry need to be?

Accepted Answer

The answer of Suppose that the productivity per worker in...

Question 20

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
  
-Refer to the graph above to answer this question.After the introduction of a $20 tariff,what is the value of the tax revenue collected by the Rysen III government?

Accepted Answer

A) $8,000. 
B) $14,000. 
C) $16,000. 
D) $24,000. 
E) $48,000. 
A) $8,000. 
B) $14,000. 
C) $16,000. 
D) $24,000. 
E) $48,000.

All the following,except one,are forms of protectionism.Which is the exception?

Table 13.14 shows the output of kumquats per month. -If comparative cost is the basis for trade,why are the developing nations,which have very low wage rates,not the world's greatest trading nations?

Below is some data on the output of kumquats in Smith Island. -Refer to information above to answer this question.If Smith Island imposed a tariff on kumquats of $3 per kilo,what would be the equilibrium price and quantity traded?

On what basis are the gains from trade divided between countries?

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100. -Refer to the graph above to answer this question.After the introduction of a $20 tariff,what is the volume of imports into Rysen III?

Table 13.14 shows the output of kumquats per month. -Define tariffs and Quotas,and explain the similarities and differences between them.

Refer to the data above to answer this question.Suppose that each country allocates 5 million of its population to the rice industry,the rest being employed in the beer industry.What is their (joint)total production?

Table 13.14 shows the output of kumquats per month. -A country has a comparative advantage over another only if it is able to produce all products more cheaply.

All of the following except one are initials of international trade organizations.Which is the exception?

What are voluntary export restrictions?

Table 13.14 shows the output of kumquats per month. -Does the principle of comparative advantage tell us how the gains from trade will be distributed? Explain.

What term describes the ability to produce something at a lower opportunity cost than others are able to?

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

Suppose that the productivity per worker in the Good X and Good Y industries of Country A and Country B are as follows: In order for there to be no gains from trade,what would the Country B productivity per worker in the Good X industry need to be?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

Filters

Exam 13: International Trade

All the following,except one,are forms of protectionism.Which is the exception?

Table 13.14 shows the output of kumquats per month. -If comparative cost is the basis for trade,why are the developing nations,which have very low wage rates,not the world's greatest trading nations?

Below is some data on the output of kumquats in Smith Island. -Refer to information above to answer this question.If Smith Island imposed a tariff on kumquats of $3 per kilo,what would be the equilibrium price and quantity traded?

On what basis are the gains from trade divided between countries?

Table 13.14 shows the output of kumquats per month. -Define tariffs and Quotas,and explain the similarities and differences between them.

Refer to the data above to answer this question.Suppose that each country allocates 5 million of its population to the rice industry,the rest being employed in the beer industry.What is their (joint)total production?

Table 13.14 shows the output of kumquats per month. -A country has a comparative advantage over another only if it is able to produce all products more cheaply.

All of the following except one are initials of international trade organizations.Which is the exception?

What are voluntary export restrictions?

Table 13.14 shows the output of kumquats per month. -Does the principle of comparative advantage tell us how the gains from trade will be distributed? Explain.

What term describes the ability to produce something at a lower opportunity cost than others are able to?

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

Suppose that the productivity per worker in the Good X and Good Y industries of Country A and Country B are as follows: In order for there to be no gains from trade,what would the Country B productivity per worker in the Good X industry need to be?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

Filters