Exam 20: International Trade

Which of the following statements is true?

The Trade Adjustment Assistance Act of 2002 focused mainly on assisting:

Refer to the table above for a certain product's market in Econland. Assume that the world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 400 units is imposed, compared against the total revenue received by foreign producers when a $1 per unit tariff is paid?

Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below. Refer to the graphs and information above. The assumption made about the domestic production opportunity costs in both countries is that they are:

In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A:

Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below. Refer to the graphs and information above. If Italy and Greece should open up trade with each other, which of the following terms of trade is mutually beneficial?

Given the following maximum-output alternatives for Brazil and Poland, it can be seen that if the two nations open up trade with each other, then:

Refer to the graph above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. If the world price for this product is $2.00, then Econland will:

If a nation imposes a tariff on an imported product, then the nation will experience a(n):

In a two-nation two-good world, if one nation is more efficient in producing both goods than the other nation, then the more-efficient nation cannot gain from trading with the other nation.

Nation Alpha can produce employing all its available resources either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing:

The higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically-produced product which is now:

A natural-resource abundant nation would be expected to export a land-intensive commodity such as:

A nation with abundant capital resources tends to be an exporter of:

NAFTA is a trade agreement that covers trade between the United States and the European Union.

If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise.

The domestic opportunity cost of producing a television in the United States is 20 bushels of wheat. In Korea, the domestic opportunity cost of producing a television is 10 bushels of wheat. In this case:

Refer to the graph above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. When the world price for this product is $0.50, Econland will:

Refer to the table above for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the equilibrium price in Econland would be:

The domestic opportunity cost of producing 100 barrels of chemicals in Germany is one ton of steel. In France, the domestic opportunity cost of producing 100 barrels of chemicals is two tons of steel. In this case: