Exam 19: Interdependence and the Gains From Trade

When a country allows trade and exports a good,

Which of the following will not shift a country's production possibilities frontier outward?

Exhibit 2 ​ Refer to Exhibit 2. If free trade is allowed, producer surplus is the

Table 1 shows the units of output a worker can produce per month in Australia and Korea. ? Food Electronics Australia 20 5 Korea 8 2 ? Refer to table 1. Which of the following statements about absolute advantage is true?

Table 1 shows the units of output a worker can produce per month in Australia and Korea. ? Food Electronics Australia 20 5 Korea 8 2 Refer to table 1. The opportunity cost of 1 unit of food in Australia is

What are the arguments in favour of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.

Points on the production possibilities frontier are

Exhibit 3 ​ Refer to Exhibit 3. The deadweight loss from the tariff is the

A tariff raises the price of a good, reduces the domestic quantity demanded, increases the domestic quantity supplied, and increases the quantity imported.

Exhibit 3 ​ Refer to Exhibit 3. If free trade is allowed, consumer surplus is the

Opponents of free trade often argue that free trade destroys domestic jobs.

If a nation has a comparative advantage in the production of a good it,

When a country allows trade and imports a good,

If Italy has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

Table 1 shows the units of output a worker can produce per month in Australia and Korea. ? Food Electronics Australia 20 5 Korea 8 2 ? Refer to table 1. The opportunity cost of 1 unit of electronics in Australia is

Exhibit 2 ​ Refer to Exhibit 2. The gains from trade correspond to the

If free trade is allowed, a country will export a good if the world price is

Julia can fix a meal in 1 hour, and her opportunity cost of one hour is €50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is €20. Will both Julia and Jacque be better off if she pays him €45 per meal to fix her meals? Explain.

Felipe is a tax accountant. He receives €100 per hour doing tax returns. He can type 10,000 characters per hour into spreadsheets. He can hire an assistant who types 2,500 characters per hour into spreadsheets. Which of the following statements is true?

How does an import quota differ from an equivalent tariff?