Exam 20: Economic Growth in the Global Economy

If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 2 tons of potatoes or 3 tons of wheat per worker per year, the country with the comparative advantage in producing potatoes is ____ and the country with the absolute advantage in producing potatoes is ____.

​Exhibit 18-5 ​ -Refer to Exhibit 18-5. The change in total surplus from free trade is area:

Which of the following would be expected if the tariff on foreign-produced automobiles was increased?

The supply and demand mechanism will bring an international market into equilibrium

Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?

​Exhibit 18-6 ​ -Refer to Exhibit 18-6. After the tariff, domestic consumers

A tariff on shoes would lead to:

At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?

Imposing a tariff brings about:

Dumping occurs when a foreign country sells its products at prices:

Import quotas contribute to higher prices of products imported into the U.S., but tariffs do not.

A U.S. tariff on French wine will likely benefit U.S. wine producers and the U.S. government (by increasing tax revenue), but harm U.S. wine drinkers and French wine producers.

The U. S. committed itself to creating a free trade zone between the U.S., Canada and Mexico. Why might this be important? Relative to imports and exports to other nations, what is the size of these two North American trading partners trade relationship with the U.S.?

​Exhibit 18-7 ​ -Refer to Exhibit 18-7. At what price is the sum of consumer surplus and producer surplus maximized?

​Exhibit 18-4 -Refer to Exhibit 18-4. The change in consumer surplus from free trade is equal to area:

An import quota or tariff on French wine that raises the prices for wine will probably

A tax levied on imported goods is called a(n)

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:

One country will have a comparative advantage over another if its production possibilities

If a nation has a comparative disadvantage in the production of some commodity,