Exam 10: International Trade

Below is a graph illustrating rice and flax production in the countries of Cardassia and Bajor. -Refer to the graph above to answer this question.Which of the following statements 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.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?

Why doesn't Canada grow its own bananas?

-Refer to above table to answer this question.Supposing that there are 200 workers each in Rings and Potter.If,originally,half the workers were employed in each industry,what would be the gains from trade if the countries completely specialized in the products in which they have a comparative advantage?

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,who were producing at combination D before trade,now 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 gains from trade for each country?

Below are the production possibilities (without trade)and the trading possibilities (with free trade)for Canada. -All of the following except one are initials of international trade organizations.Which is the exception?

All of the following,except one,are promoted by the IMF.Which is the exception?

Below is the productivity per worker (kilos per day)in the rice and beer industries of Catalonia and Granada.The working population in each country is 12 million people. -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?

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?

Explain why consumers lose and producers win if a tariff is imposed.

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

Below are the production possibilities (without trade)and the trading possibilities (with free trade)for Canada. -Refer to the graph above to answer this question.Assuming no trade,what is the opportunity cost of 1 more aircraft?

Suppose that the cost of producing 1 unit of wine in Happy Island is 2 units of rice;in Joy Island 1 wine costs 4 rice.What might be possible terms of trade between the two countries?

What is meant by the infant-industry argument?

Suppose that the productivity per worker in the milk and cranberry juice industries of Southland and Northland are as follows: a)Which country has the absolute advantage in producing milk? b)Which country has the absolute advantage in producing cranberry juice? c)Which country has the comparative advantage in producing milk? d)Which country has the comparative advantage in producing cranberry juice? e)According to the theory of comparative advantage,will there be trade? If yes,what is the direction of trade?

What is the term for a tax or duty levied on imported products?

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?

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 rice cakes in Etheric?

Below are the production possibilities (without trade)and the trading possibilities (with free trade)for Canada. -Refer to the graph above to answer this question.Assuming free trade,what is the opportunity cost of 1 more railcar?

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?