Question 1

What are the terms of trade? In general,what could cause the terms of trade to move in Canada's favour?

Accepted Answer

The terms of trade refers to the trading

Question 2

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 gains from free trade in wine between France and Germany?

Accepted Answer

A) German wine producers and French wine drinkers. 
B) German wine producers and German wine drinkers. 
C) French wine producers and French wine drinkers. 
D) French wine producers and German wine drinkers. 
A) German wine producers and French wine drinkers. 
B) German wine producers and German wine drinkers. 
C) French wine producers and French wine drinkers. 
D) French wine producers and German wine drinkers.

Question 3

Suppose that the maximum output in the corn and barley industries of China and Russia are as follows:
   What is the range of feasible terms of trade between the two countries?

Accepted Answer

1 unit of corn: 0.2

Question 4

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.

Question 5

Which of the following statements about the impact of the introduction of free trade is correct?

Accepted Answer

A) It results in higher prices for domestic producers. 
B) It results in lower prices for foreign consumers. 
C) It results in lower prices for foreign producers. 
D) It results in lower prices for domestic consumers. 
A) It results in higher prices for domestic producers. 
B) It results in lower prices for foreign consumers. 
C) It results in lower prices for foreign producers. 
D) It results in lower prices for domestic consumers.

Question 6

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

Accepted Answer

A) 2 swords. 
B) 0.5 swords. 
C) 0.33 swords. 
D) 3 swords. 
A) 2 swords. 
B) 0.5 swords. 
C) 0.33 swords. 
D) 3 swords.

Question 7

Table 10.14 shows the output of kumquats per month.
  
-Refer to Table 10.14 to answer this question.What is the world (free trade)price of kumquats,and what quantity of this product is being consumed domestically?

Accepted Answer

A) $4 and 50 kilos consumed. 
B) $4 and 90 kilos consumed. 
C) $5 and 80 kilos consumed. 
D) $6 and 70 kilos consumed. 
E) $6 and 130 kilos consumed. 
A) $4 and 50 kilos consumed. 
B) $4 and 90 kilos consumed. 
C) $5 and 80 kilos consumed. 
D) $6 and 70 kilos consumed. 
E) $6 and 130 kilos consumed.

Question 8

-Refer to above table to answer this question.Supposing that there are 200 workers in Potter,how many swords could be produced if 540 broomsticks were produced?

Accepted Answer

A) 0 swords. 
B) 110 swords. 
C) 120 swords. 
D) 330 swords. 
A) 0 swords. 
B) 110 swords. 
C) 120 swords. 
D) 330 swords.

Question 9

Below is the productivity per worker in the beef and pork industries of two countries: Cholesterol and Fat.
(Output in kilos per day)
  
-What is comparative advantage?

Accepted Answer

A) The advantage gained from producing something at a lower opportunity cost than other producers are able to. 
B) An advantage in production as a result of possessing better skills,or equipment or resources in comparison to other individuals or countries. 
C) An econoMac policy of protecting domestic producers by restricting the importation of foreign products. 
D) A government regulation which controls how much of a single product can be sold or produced in a competitive market. 
A) The advantage gained from producing something at a lower opportunity cost than other producers are able to. 
B) An advantage in production as a result of possessing better skills,or equipment or resources in comparison to other individuals or countries. 
C) An econoMac policy of protecting domestic producers by restricting the importation of foreign products. 
D) A government regulation which controls how much of a single product can be sold or produced in a competitive market.

Question 10

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.Assuming no trade,what are the equilibrium price and quantity of wine in Germany?

Accepted Answer

A) $6 and 10. 
B) $7 and 5. 
C) $8 and 7. 
D) $9 and 7. 
A) $6 and 10. 
B) $7 and 5. 
C) $8 and 7. 
D) $9 and 7.

Question 11

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 12

Explain why free trade may not be possible.

Accepted Answer

Free trade may not be possible because o

Question 13

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 trade in the products in which they have a comparative advantage 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 Mental?

Accepted Answer

A) 30 million units of soya milk and 55 million units of rice cakes. 
B) 45 million units of soya milk and 90 million units of rice cakes. 
C) 35 million units of soya milk and 30 million units of rice cakes. 
D) 90 million units of soya milk and 45 million units of rice cakes. 
E) 10 million units of soya milk and 30 million units of rice cakes. 
A) 30 million units of soya milk and 55 million units of rice cakes. 
B) 45 million units of soya milk and 90 million units of rice cakes. 
C) 35 million units of soya milk and 30 million units of rice cakes. 
D) 90 million units of soya milk and 45 million units of rice cakes. 
E) 10 million units of soya milk and 30 million units of rice cakes.

Question 14

A tariff is a tax on exports;a quota is a tax on imports.

Accepted Answer

A) True 
 B)False

Question 15

Suppose the following domestic demand and supply schedule for Thailand's wine industry:
   a)In the absence of free trade,what is the equilibrium price and quantity traded domestically for Thailand's wine industry?
b)Suppose the international price for a bottle of wine is $27.Will Thailand export or import wine? How many units?
c)Now suppose the Thai government places a $2 tariff on imported wine.How many units will Thailand import?

Accepted Answer

a)$26 and 360,000 bo

Question 16

If a country is able to produce all products more cheaply than any other country can,then there is no advantage in trade.

Accepted Answer

A) True 
 B)False

Question 17

Define tariffs and Quotas,and explain the similarities and differences between them.

Accepted Answer

Tariffs are taxes imposed by the governm

Question 18

If the average price of exports is 14.4,what is the average price of imports if the terms of trade is:
a)0.8
b)1
c)1.2

Accepted Answer

a)18.0
b)1

Question 19

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.What is the cost of a kilo of beans in Ibrox?

Accepted Answer

A) 0.5 wheat. 
B) 6 wheat. 
C) 3 beans. 
D) 2 wheat. 
A) 0.5 wheat. 
B) 6 wheat. 
C) 3 beans. 
D) 2 wheat.

Question 20

What are currency exchange controls?

Accepted Answer

A) Government restrictions limiting the amount of foreign currency which can be obtained. 
B) A limit imposed on the production or sale of a product. 
C) A government regulation which controls how much of a single product can be sold or produced in a competitive market. 
D) A restriction placed on the importation of foreign products. 
A) Government restrictions limiting the amount of foreign currency which can be obtained. 
B) A limit imposed on the production or sale of a product. 
C) A government regulation which controls how much of a single product can be sold or produced in a competitive market. 
D) A restriction placed on the importation of foreign products.

What are the terms of trade? In general,what could cause the terms of trade to move in Canada's favour?

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 gains from free trade in wine between France and Germany?

Suppose that the maximum output in the corn and barley industries of China and Russia are as follows: What is the range of feasible terms of trade between the two countries?

Which of the following statements about the impact of the introduction of free trade is correct?

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

Table 10.14 shows the output of kumquats per month. -Refer to Table 10.14 to answer this question.What is the world (free trade)price of kumquats,and what quantity of this product is being consumed domestically?

-Refer to above table to answer this question.Supposing that there are 200 workers in Potter,how many swords could be produced if 540 broomsticks were produced?

Below is the productivity per worker in the beef and pork industries of two countries: Cholesterol and Fat. (Output in kilos per day) -What is comparative advantage?

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.Assuming no trade,what are the equilibrium price and quantity of wine in Germany?

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?

Explain why free trade may not be possible.

A tariff is a tax on exports;a quota is a tax on imports.

If a country is able to produce all products more cheaply than any other country can,then there is no advantage in trade.

Define tariffs and Quotas,and explain the similarities and differences between them.

If the average price of exports is 14.4,what is the average price of imports if the terms of trade is: a)0.8 b)1 c)1.2

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.What is the cost of a kilo of beans in Ibrox?

What are currency exchange controls?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 10: International Trade

What are the terms of trade? In general,what could cause the terms of trade to move in Canada's favour?

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 gains from free trade in wine between France and Germany?

Suppose that the maximum output in the corn and barley industries of China and Russia are as follows: What is the range of feasible terms of trade between the two countries?

Which of the following statements about the impact of the introduction of free trade is correct?

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

Table 10.14 shows the output of kumquats per month. -Refer to Table 10.14 to answer this question.What is the world (free trade)price of kumquats,and what quantity of this product is being consumed domestically?

-Refer to above table to answer this question.Supposing that there are 200 workers in Potter,how many swords could be produced if 540 broomsticks were produced?

Below is the productivity per worker in the beef and pork industries of two countries: Cholesterol and Fat. (Output in kilos per day) -What is comparative advantage?

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.Assuming no trade,what are the equilibrium price and quantity of wine in Germany?

Explain why free trade may not be possible.

A tariff is a tax on exports;a quota is a tax on imports.

If a country is able to produce all products more cheaply than any other country can,then there is no advantage in trade.

Define tariffs and Quotas,and explain the similarities and differences between them.

If the average price of exports is 14.4,what is the average price of imports if the terms of trade is: a)0.8 b)1 c)1.2

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.What is the cost of a kilo of beans in Ibrox?

What are currency exchange controls?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters