Question 1

Which of the following statements is false?

Accepted Answer

A) Japan is less dependent on foreign trade than is the United States. 
B) Imports and exports account for over one-half of the GDP of the Netherlands. 
C) China is the leading exporting country,accounting for 10.3 percent of total world exports. 
D) Because the cost of labor used on farms is so high,the United States exports very little of its wheat,rice,and corn crops. 
A) Japan is less dependent on foreign trade than is the United States. 
B) Imports and exports account for over one-half of the GDP of the Netherlands. 
C) China is the leading exporting country,accounting for 10.3 percent of total world exports. 
D) Because the cost of labor used on farms is so high,the United States exports very little of its wheat,rice,and corn crops.

Question 2

Whenever a buyer and a seller agree to trade,both must believe they will be made better off

Accepted Answer

A) unless the buyer resides in a different country than the seller.International trade may make the buyer or seller worse off. 
B) unless one party is richer than the other. 
C) only if the buyer and seller live in countries with market economies. 
D) whether the buyer and seller live in the same city or different countries. 
A) unless the buyer resides in a different country than the seller.International trade may make the buyer or seller worse off. 
B) unless one party is richer than the other. 
C) only if the buyer and seller live in countries with market economies. 
D) whether the buyer and seller live in the same city or different countries.

Question 3

Figure 7-1   Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Under autarky,the producer surplus is area

Accepted Answer

A) S + V. 
B) T + W + X. 
C) V. 
D) S + T + V + W + X. 
A) S + V. 
B) T + W + X. 
C) V. 
D) S + T + V + W + X.

Question 4

A quota is a numerical limit on the quantity of a good that can be imported.

Accepted Answer

A) True 
 B)False

Question 5

Table 7-6
Output per hour Production and Production
of work Consumption without Trade with Trade
   Estonia and Morocco can produce both swords and belts.Each country has a total of 40 available labor hours for the production of swords and belts.Table 7-6 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 7-6.If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded,how many belts will Estonia gain compared to the "without trade" numbers?

Accepted Answer

A) 0 
B) 10 
C) 40 
D) 50 
A) 0 
B) 10 
C) 40 
D) 50

Question 6

Imports are goods and services bought domestically but produced in other countries.

Accepted Answer

A) True 
 B)False

Question 7

The textbook refers to the following quotation from a Federal Reserve publication: "Trade is a win-win situation for all countries that participate." But many firms and workers oppose free-trade policies and protests against globalization have become a regular occurrence at meetings of the World Trade Organization.If trade is a "win-win" situation,why is there strong opposition to free trade and globalization?

Accepted Answer

Free trade between any two countries can

Question 8

The first discussion of comparative advantage appears in a book written by

Accepted Answer

A) Adam Smith. 
B) Paul Samuelson. 
C) David Portugal. 
D) David Ricardo. 
A) Adam Smith. 
B) Paul Samuelson. 
C) David Portugal. 
D) David Ricardo.

Which of the following statements is false?

Whenever a buyer and a seller agree to trade,both must believe they will be made better off

Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear. -Refer to Figure 7-1.Under autarky,the producer surplus is area

A quota is a numerical limit on the quantity of a good that can be imported.

Imports are goods and services bought domestically but produced in other countries.

The first discussion of comparative advantage appears in a book written by

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Comparative Advantage and the Gains From International Trade

Which of the following statements is false?

Whenever a buyer and a seller agree to trade,both must believe they will be made better off

Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear. -Refer to Figure 7-1.Under autarky,the producer surplus is area

A quota is a numerical limit on the quantity of a good that can be imported.

Imports are goods and services bought domestically but produced in other countries.

The first discussion of comparative advantage appears in a book written by

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters