Exam 8: International Trade

The United States places a tariff on imported Brazilian ethanol.The impact of this tariff on the domestic ethanol market is a _____ domestic price,_____ consumer surplus,and _____ producer surplus.

If the executives of the U.S.silicon chip industry lobby Congress for protection from imports on the grounds that theirs is a new industry that needs time to develop technological efficiency,they are using the _____ argument.

Use the following to answer question: -(Figure: The Markets for Melons in Russia)Use Figure: The Market for Melons in Russia.Without trade,the country's producer surplus will equal area _____,and consumer surplus will equal area _____.

The belief that trade must be bad for exporting countries because the foreign workers are paid very low wages by our standards is the _____ fallacy.

The belief that importing goods from low-wage countries will hurt the standard of living of workers in the importing country is known as the:

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Trade will NOT take place if 1 microchip trades for _____ tire(s).

Use the following to answer question -(Figure: The Domestic Market for Rice)Use Figure: The Domestic Market for Rice.Assume that P_A is the autarky price and P_W is the world price.After international trade,this nation will _____ a quantity of rice equal to _____.

In a single year,the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Belgium can raise 50 tons of beef or produce 750 boxes of tulips.In autarky,the opportunity cost of beef:

Use the following to answer question: -(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.If Indonesia and Malaysia specialize completely in the production of the good of their comparative advantage,the two nations together will produce _____ tires and _____ microchips.

When a country moves from autarky to free international trade,consumers and producers in the import and export sectors all gain (i.e. ,both consumer surplus and producer surplus increase in both sectors).

The United States must give up the production of 300 motorcycles to produce 20 additional SUVs with the same resources.In this case,the opportunity cost of producing 5 SUVs is ________ motorcycles.

Use the following to answer question: -(Figure: The Domestic Supply and Demand for SUVs in the United States)Use Figure: The Domestic Supply and Demand for SUVs in the United States.Suppose the world price equals $50,000 and there is free trade.In the United States,consumer surplus would _____ and producer surplus would _____.

Use the following to answer question: -(Figure: The Market for Computers)Use Figure: The Market for Computers.Assume that P_A is the autarky price and P_W is the world price.Producer surplus with international trade would be area:

Use the following to answer question: -(Table: Production Possibilities)Use Table: Production Possibilities.The opportunity cost of 1 computer for _____ is _____ box(es)of roses.

An example of a tariff is a:

The United States and the European Union levy heavy import tariffs on agricultural products,which hurt many poor farmers from the very poorest countries in the world.

Use the following to answer question: -(Table: Production Possibilities for Machinery and Petroleum)Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost of _____ is _____ in the United States as (than)in Mexico.

Use the following to answer question: -(Figure: The Production Possibility Frontiers for Jackson and Tahoe)Use Figure The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 bushels of wheat,while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.If both nations specialize completely in the good of their comparative advantage and Jackson exports 120 bushels of wheat to Tahoe in exchange for 60 head of cattle,then the new consumption point for Jackson after trade is _____ bushels of wheat and _____ head of cattle.

A tax on imports of foreign goods is called a(n):

Suppose in a single year,Brazil can produce 100 tons of beef or 1,000 boxes of tulips.Suppose in the world market,one ton of beef costs eight boxes of tulips.Brazil will import beef.