FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: International Trade

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

A high tariff on imported good X might reduce domestic employment in industry Y if

A) X is an input used domestically in producing Y.
B) X and Y are substitute goods.
C) X is an inferior good.
D) Y is an inferior good.

E) B) and C)
F) None of the above

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities $\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 120 & 90 & 60 & 30 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ Sigma's production possibilities $\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 40 & 30 & 20 & 10 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ On the basis of this information,

A) Gamma should export both tea and pots to Sigma.
B) Sigma should export tea to Gamma, and Gamma should export pots to Sigma.
C) Gamma should export tea to Sigma, and Sigma should export pots to Gamma.
D) Gamma should export tea to Sigma, but it will not be pro?table for the two nations to exchange pots.

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\\hline 12 & \$ 5 & 2 \\\hline 10 & 4 & 4 \\\hline 7 & 3 & 7 \\\hline 4 & 2 & 11 \\\hline 1 & 1 & 16 \\\hline\end{array}$ With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers Would be

Which of the following arguments contends that certain industries need to be protected in the interest of national security?

Which of the following is an example of a labor-intensive commodity?

The imposition of a tariff on a product is least likely to result in a(n)

${ \text { Domestic Market For Steel, Alpha } }$ $\begin{array}{l}\begin{array} { | c | c | c | } \hline Q _ { S } & P & Q _ { d } \\\hline 60 & \$ 5 & 10 \\\hline 40 & 4 & 20 \\\hline 30 & 3 & 30 \\\hline 20 & 2 & 40 \\\hline 10 & 1 & 50 \\\hline\end{array}\\\\\\{ \text { Domestic Market For Steel, Beta } } \\\begin{array} { | c | c | c | } \hline Q _ { S } & P & Q _ { d } \\\hline 80 & \$ 5 & 20 \\\hline 70 & 4 & 30 \\\hline 60 & 3 & 40 \\\hline 50 & 2 & 50 \\\hline 40 & 1 & 60 \\\hline\end{array}\end{array}$ The accompanying tables show data for the hypothetical nations of Alpha and Beta. $Q _ { S }$ is domestic Quantity supplied, and $Q _ { d }$ is domestic quantity demanded. At a world price of $2,

Assuming labor forces of equal size, the production possibilities curves suggest that workers in West Mudville will have

$\begin{array}{l}\text { Domestic Market For Steel, Alpha }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 60 & \$ 5 & 10 \\\hline 40 & 4 & 20 \\\hline 30 & 3 & 30 \\\hline 20 & 2 & 40 \\\hline 10 & 1 & 50 \\\hline\end{array}\end{array}$ $\begin{array}{l}\text { Domestic Market For Steel, Beta }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 80 & \$ 5 & 20 \\\hline 70 & 4 & 30 \\\hline 60 & 3 & 40 \\\hline 50 & 2 & 50 \\\hline 40 & 1 & 60 \\\hline\end{array}\end{array}$ The accompanying tables show data for the hypothetical nations of Alpha and Beta. $Q_{S}$ is domestic quantity supplied, and $Q_{d}$ is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price must be lower than $\$ 4$ because, at $\$ 4$ ,

Starting in 2012, an important shift occurred in the U.S. trade in petroleum, which was

Tariffs and quotas are costly to consumers because

The term trade deficit refers to a situation where

In a two-nation world, comparative advantage in the production of a particular product means that one nation can produce

(Last Word) Frederic Bastiat's satirical argument against protectionism called for protecting domestic producers from

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for Nation Beta are 60X and 40Y. We can conclude that

In effect, tariffs on imports are

A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a

"NAFTA" stands for

$\quad\quad { Country ~X }$ $\begin{array} { | c | c | c | } \hline Price & Q _ { d d } & Q _ { S d } \\\hline \$ 5.00 & 200 & 400 \\\hline 4.00 & 250 & 350 \\\hline 3.00 & 300 & 300 \\\hline 2.00 & 350 & 250 \\\hline 1.00 & 400 & 200 \\\hline\end{array}$ The accompanying table gives data for Country $X$ . Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically $\left( Q _ { d d } \right)$ , and Column 3 is the quantity supplied domestically $\left( Q _ { s d } \right)$ . If Country $X$ opens itself up to international trade, at what world price will it begin importing some units of the product?

The primary gain from international trade is