Exam 18: International Trade

Exhibit 17-10 -In Exhibit 17-10 the domestic demand for sugar is represented by D and the domestic supply is represented by S and the world price of sugar is $.13 per pound with a domestic tariff of $.02 per pound of sugar.This tariff will increase producer surplus by

Differences in resource endowments are differences in

U.S.auto workers sometimes experience structural unemployment because of the popularity of foreign cars.Which argument is a labor union most likely to present to Congress when it lobbies for trade restrictions?

The primary difference between an import tariff and an import quota is that

Which of the following is not correct regarding dumping?

Exhibit 17-1 -Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.If the terms of trade are 1 $1 / 2$ fish per coconut,then Lambda and Beta would be able to benefit from specialization and trade.

A major U.S.motive for negotiating a free-trade agreement with Mexico was

U.S.consumers would be better off if they bought only U.S.-produced goods.

If production is subject to economies of scale,

The General Agreement on Tariffs and Trade (GATT)was established in

For each watch Denmark produces,it gives up the opportunity to make 50 pounds of cheese.Germany can produce one watch for every 100 pounds of cheese it produces.Which of the following is true concerning comparative advantage between the two countries?

Exhibit 17-6 -In Exhibit 17-6,the world price of a baseball is $3.With free trade,how many baseballs will the United States import?

Ad valorem tariffs on imports are based on a percentage of an import's value; specific tariffs are based on a lump sum per physical unit imported.

Exhibit 17-6 -Exhibit 17-6 shows domestic supply and demand for baseballs in the United States.The world price of a baseball is $3.With free trade,how many baseballs will be purchased in the United States?

Tina Makumbi imports sesame oil from Ethiopia and sells to a market that has a downward sloping demand curve.The demand curve indicates that some consumers are willing to pay $1.50 or more per pound for the first few pounds,but every consumer gets to buy at the market clearing price of $0.50 per pound.The difference between the most that consumers would pay and the actual amount they do pay is called

International trade increases world economic efficiency for the same reasons that domestic trade increases national economic efficiency.

Dumping is the practice of

Exhibit 17-5 -If the country illustrated in Exhibit 17-5 is initially trading without restrictions at a world price of $1.00,the gain in producer surplus as a result of a tariff of $0.50 per unit is represented by area

The Doha Round of talks led to a widely accepted agreement on international trade issues.

Regional trading bloc agreements