Exam 19: International Trade

Use the following to answer questions Figure: World Imports -(Figure: World Imports)Refer to the figure.The imposition of a $20 tariff would generate a value of lost gains from trade of:

The United States is not competitive with Brazil in sugar production partly because:

A tariff is a:

Which of the following arguments is valid in the economics of international trade?

Trade:

Suppose a government is facing accusations of allowing domestic jobs to be lost to foreign labor in other countries.How can the government address these concerns? I.Governments can ensure that unemployment insurance and strong education programs exist to help workers retrain for new jobs. II.Governments can stress the importance of job creation in those industries that benefit from international trade,and encourage job creation in those industries. III.Governments can set up extensive trade restrictions to limit the impact of foreign firms on domestic production.

The prevalence of child labor tends to increase as countries get richer.

Use the following to answer questions Figure: Foreign Trade Market -(Figure: Foreign Trade Market)Refer to the figure.What is the dollar value of wasted resources as a result of prohibiting trade in this market?

Economic growth requires job destruction,since the destroyed jobs free up resources for more productive activities.

Briefly discuss any benefits of "protectionism".

The flu pandemic of 1918 provides an example of:

Figure: Market Activity with and without Trade Refer to the figure.Using the diagram for market activity with and without trade to consider the effects of a trade restriction that eliminated foreign trade in an economy,answer the following questions. a.What is the dollar amount of deadweight loss created as a result of the trade restriction? b.What is the dollar value of wasted resources as a result of the trade restriction? c.What is the dollar gain in domestic producer surplus as a result of the trade restriction?

During the recent economic slowdown,many jobs were lost in the Detroit area because of high prices (and therefore low sales)of domestically produced cars.Domestic companies that have succeeded in weathering the storm,such as Ford Motor Company,have done so by cutting unprofitable car lines,moving production toward more fuel-efficient vehicles,and cutting wasteful spending.Still,many workers lost their jobs.In economic terms,explain whether the market is more or less efficient now than before the recession began.

As a result of U.S.quotas on sugar imports,all of the following are true,EXCEPT:

Which statement is TRUE?

Protectionism tends to create a society that pits one interest group against another and seeds social discord.

Which of the following is NOT an argument against international trade?

Use the following to answer questions Figure: Foreign Trade with a Tariff -(Figure: Foreign Trade with a Tariff)Refer to the figure.A $1 tariff generates increased domestic production by:

Use the following to answer questions Figure: Foreign Trade with a Tariff -(Figure: Foreign Trade with a Tariff)Refer to the figure.A $1 tariff results in:

A trade quota is: