Exam 20: World Trade Equilibrium

The figure given below shows the import demand and export supply curves of corn in the U.S. and Mexico.Figure 20.2 -Refer to Figure 20.2. The no-trade equilibrium price of a bushel of corn in Mexico is:

The following table shows that in one day poultry farmers in Arkansas can produce 3 cartons of eggs, while poultry farmers in Idaho can produce 2 cartons of eggs. It takes Arkansas potato farmers one day to produce 30 tons of potatoes, while Idaho potato farmers produce 10 tons of potatoes in that same time.Table 20.4 -According to Table 20.4, what is the opportunity cost of 1 crate of eggs in Idaho?

The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market.Figure 20.1 -Refer to Figure 20.1. If the price of coffee in the international market is $14:

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5 -If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina.

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5 -A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country.

The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market.Figure 20.1 -If the world price of steel is greater than the U.S. "no-trade" domestic equilibrium price of steel, the United States:

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or 1,200 units of food in a day.Table 20.2 -According to Table 20.2, Australia has:

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1 -According to Table 20.1, the opportunity cost of producing one unit of wheat in India equals:

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5 -International equilibrium occurs if the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country.

Scenario 20.1 Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. -Refer to Scenario 20.1. Which of the following statements is true?

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2 -Which of the following countries receives the largest share of U.S. exports?

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5 -We know that industrial countries tend to trade with other industrial countries. This pattern counters the:

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2 -The most heavily traded category of goods in the world is:

Scenario 20.1 Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. -Refer to Scenario 20.1. Which of the following statements is true?

Scenario 20.2 Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa. -The Dutch Disease had occurred in Netherlands because:

Scenario 20.2 Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa. -The proportion of domestic demand for a good that is satisfied by domestic production relative to that supplied by imports is determined by:

The following table shows the units of calculators and rice produced by a laborer in a day in Japan and Korea.Table 20.3 -The terms of trade is defined as:

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or 1,200 units of food in a day.Table 20.2 -According to Table 20.2, what is the opportunity cost of 1 computer in Australia?

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5 -Firms in industrial countries find a larger market for their goods in other industrial countries than in developing countries because:

The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market.Figure 20.1 -The export supply curve shows a country's: