Exam 5: International Trade 5

Use the following to answer questions : Figure: The Market for Melons in Russia -(Figure: The Markets for Melons in Russia) Look at the figure The Market for Melons in Russia. Without trade, the country's producer surplus will equal area _____, and consumer surplus will equal area _____.

In a single year, the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips. In the same growing season, Belgium can raise 50 tons of beef or produce 750 boxes of tulips. From this information, we know that:

Use the following to answer questions : -(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. Which of the following is TRUE?

Use the following to answer questions : Figure: The Market for MP3 Players -(Figure: The Market for MP3 Players) Look at the figure The Market for MP3 Players. Assume that S_d represents the domestic supply curve and D_d represents the domestic demand curve. In the market for MP3 players, the autarky price equals:

Assume that a tariff is imposed on Chinese imports into the United States. This tariff is likely to _____ U.S. producers and _____ Chinese producers.

If the United States imposes an import quota on French wines, the result in the short run is likely to be _____ profits for American wine producers and _____ profits for French wine producers.

Relative to the size of their economy, many other countries engage in more foreign trade than the United States.

Use the following to answer questions : Figure: A Tariff on Oranges in South Africa -(Figure: A Tariff on Oranges in South Africa) Look at the figure A Tariff on Oranges in South Africa. When the government imposes a tariff on imported oranges, the price of oranges in South Africa rises from P_W to P_T and there's a net _____ to total surplus of _____.

Use the following to answer questions: Figure: The Production Possibilities for Two Countries -(Figure: The Production Possibilities for Two Countries) Look at the figure The Production Possibilities for Two Countries. Trade will NOT take place if 1 radio trades for:

If a country imposes a tariff on imported shoes, we expect the domestic price of shoes to _____, domestic consumption to _____, and domestic production to _____.

The World Trade Organization:

Use the following to answer questions: Figure: The Production Possibilities for Two Countries -(Figure: The Production Possibilities for Two Countries) Look at the figure The Production Possibilities for Two Countries. The opportunity cost of producing 1 radio in Malaysia is:

Suppose a nation has freely imported sugar at the world price P_W for many years. However, a new government administration decides to levy a tariff on imported sugar, and the price rises to P_t. Most economists report that this has caused inefficiency. How?

A tariff is most likely to _____ prices and _____ domestic consumption of the good or service being protected.

Use the following to answer questions: -(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. The opportunity cost in Mexico of producing 105 units of petroleum is _____ units of machinery.

Exports increase producer surplus but decrease consumer surplus and total surplus.

Since the United States imports a large quantity of textiles from Asia, the overall wages of U.S. textile workers has _____, while the price of textiles in the United States has _____.

Assume that the United States imposes an import quota on Columbian coffee. Relative to the equilibrium world price that would prevail in the absence of import quotas, it is likely that the equilibrium price of coffee in the United States will _____ and the equilibrium price of coffee in Columbia will _____.

If the United States removed the tariffs and quotas on sugar, in the U.S. market for sugar:

Assume that the United States imposes an import quota on Italian shoes. Relative to the equilibrium world price that would exist in the absence of import quotas, the equilibrium price of shoes in the United States will most likely _____, and the equilibrium price of shoes in Italy will most likely _____.