Exam 10: International Trade

Below is production possibilities data for the countries of Mental and Etheric. -Refer to the information above to answer this question.Suppose that the two countries specialize and engage in free trade and establish the terms of trade at 1 unit of rice cake = 1.5 units of soya milk.If Etheric exports 30 million units of rice cakes to Mental,what will be the consumption combinations for Etheric?

Below is the productivity per worker in the beef and pork industries of two countries: Cholesterol and Fat. (Output in kilos per day) -Refer to the information above to answer this question.Which of the following is true?

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.What is the opportunity cost of 1 bushel of rye in Mexico?

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

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.Assuming there is free trade,what quantity of mustard seeds will be imported?

Below is production possibilities data for the countries of Mental and Etheric. -What term describes the average price of a country's exports compared with the price of its imports?

Figure 10.10 shows the market for cloth in Smith Island. -Refer to Figure 10.10 to answer this question.If Smith Island introduced a tariff of $10 on cloth,how much would be imported?

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?

Members of NAFTA include:

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?

"According to the theory of comparative advantage,trade is always mutually beneficially." Evaluate this statement.

Below is production possibilities data for the countries of Mental and Etheric. -Refer to the information above to answer this question.Suppose that each country specializes in the product in which it has a comparative advantage.What will be the total output of each product?

What is the cornerstone of trade?

Adam Smith believed that specialization is limited by:

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.Suppose that initially each country was self-sufficient in the two products and employed half of their working populations in each industry.If subsequently each country were to totally specialize in the product in which it has a comparative advantage,what would be the subsequent gains from trade?

Below is some data on the output of kumquats in Smith Island. -Refer to information above to answer this question.If the world price (free trade)price prevailed,how many kumquats per month would Smith Island import?

How are trade and specialization related?

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?

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.What is the opportunity cost of 1 bushel of rye in Canada?

What is meant by the cultural-identity argument?