Question 1

In the real world we don't observe countries completely specialising in the production of goods for which they have a comparative advantage. One reasons for this is

Accepted Answer

A)  comparative advantage works better in theory than in practice. 
B)  some countries have more resources than other countries. 
C)  tastes for many traded goods are similar in many countries because of globalisation. 
D)  production of most goods involves increasing opportunity costs. 
A)  comparative advantage works better in theory than in practice. 
B)  some countries have more resources than other countries. 
C)  tastes for many traded goods are similar in many countries because of globalisation. 
D)  production of most goods involves increasing opportunity costs.

Question 2

What is a tariff?

Accepted Answer

A tariff is a tax im

Question 3

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

Accepted Answer

A)  Sandy has a comparative advantage in dog grooming. 
B)  Linda has a comparative advantage in dog grooming. 
C)  Linda has a comparative advantage in dog grooming and dog bathing. 
D)  Sandy has a comparative advantage in dog bathing. 
A)  Sandy has a comparative advantage in dog grooming. 
B)  Linda has a comparative advantage in dog grooming. 
C)  Linda has a comparative advantage in dog grooming and dog bathing. 
D)  Sandy has a comparative advantage in dog bathing.

Question 4

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

Accepted Answer

A)  Linda has an absolute advantage in dog bathing and Sandy has an absolute advantage in dog grooming. 
B)  Sandy has an absolute advantage in dog bathing and Linda has an absolute advantage in dog grooming. 
C)  Sandy has an absolute advantage in dog bathing and dog grooming. 
D)  Linda has an absolute advantage in dog bathing and dog grooming. 
A)  Linda has an absolute advantage in dog bathing and Sandy has an absolute advantage in dog grooming. 
B)  Sandy has an absolute advantage in dog bathing and Linda has an absolute advantage in dog grooming. 
C)  Sandy has an absolute advantage in dog bathing and dog grooming. 
D)  Linda has an absolute advantage in dog bathing and dog grooming.

Question 5

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Accepted Answer

A)  they do not want to offend their employers who want them. 
B)  politicians lobby to convince workers the restrictions will make them better off. 
C)  they believe the restrictions will protect their jobs. 
D)  they don't understand that the restrictions will threaten their jobs. 
A)  they do not want to offend their employers who want them. 
B)  politicians lobby to convince workers the restrictions will make them better off. 
C)  they believe the restrictions will protect their jobs. 
D)  they don't understand that the restrictions will threaten their jobs.

Question 6

A quota

Accepted Answer

A)  makes domestic consumers better off. 
B)  makes both domestic producers and consumers better off. 
C)  makes everyone worse off. 
D)  makes domestic producers better off. 
A)  makes domestic consumers better off. 
B)  makes both domestic producers and consumers better off. 
C)  makes everyone worse off. 
D)  makes domestic producers better off.

Question 7

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria. We can conclude that

Accepted Answer

A)  Bulgaria also has an absolute advantage in producing sandals relative to Finland. 
B)  Bulgaria has a lower opportunity cost of producing sandals relative to Finland. 
C)  Finland has an absolute disadvantage in producing sandals relative to Bulgaria. 
D)  labour costs are higher for sandal producers in Finland than in Bulgaria. 
A)  Bulgaria also has an absolute advantage in producing sandals relative to Finland. 
B)  Bulgaria has a lower opportunity cost of producing sandals relative to Finland. 
C)  Finland has an absolute disadvantage in producing sandals relative to Bulgaria. 
D)  labour costs are higher for sandal producers in Finland than in Bulgaria.

Question 8

Distinguish between a voluntary export restraint and a quota.

Accepted Answer

A voluntary export restraint is an agree

Question 9

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

Accepted Answer

A)  each country would be better off from trade if it had an absolute advantage in producing one of the goods. 
B)  each country would have a comparative advantage in the production of the good for which it had an absolute advantage. 
C)  mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods. 
D)  mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods. 
A)  each country would be better off from trade if it had an absolute advantage in producing one of the goods. 
B)  each country would have a comparative advantage in the production of the good for which it had an absolute advantage. 
C)  mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods. 
D)  mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods.

Question 10

What is the difference between imports and exports?

Accepted Answer

Imports are goods and services

Question 11

A situation in which a country does not trade with other countries is called

Accepted Answer

A)  autarky. 
B)  self-actualisation. 
C)  autonomy. 
D)  independence. 
A)  autarky. 
B)  self-actualisation. 
C)  autonomy. 
D)  independence.

In the real world we don't observe countries completely specialising in the production of goods for which they have a comparative advantage. One reasons for this is

What is a tariff?

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A quota

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria. We can conclude that

Distinguish between a voluntary export restraint and a quota.

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

What is the difference between imports and exports?

A situation in which a country does not trade with other countries is called

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 13: International Trade

In the real world we don't observe countries completely specialising in the production of goods for which they have a comparative advantage. One reasons for this is

What is a tariff?

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

-Refer to Table 13-1. Select the statement that accurately interprets the data in the table.

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A quota

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria. We can conclude that

Distinguish between a voluntary export restraint and a quota.

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

What is the difference between imports and exports?

A situation in which a country does not trade with other countries is called

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters