(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein? \[\begin{array} { | l | l | l | } \hline & \text { Cabbages } & \text { Oranges } \\ \hline \text { Econoland } & 50,000 & 40,000 \\ \hline \text { Macroland } & 80,000 & 72,000 \\ \hline \end{array}\]

A) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Econoland has comparative advantage in cabbage production. B) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Macroland has comparative advantage in cabbage production. C) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Macroland has comparative advantage in cabbage production. D) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Econoland has comparative advantage in cabbage production. A) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Econoland has comparative advantage in cabbage production. B) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Macroland has comparative advantage in cabbage production. C) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Macroland has comparative advantage in cabbage production. D) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Econoland has comparative advantage in cabbage production.

Exam 15: International Trade

Suppose that the United States and Italy are considering trade in two products: grain and oranges. Suppose that before trade, the United States produces 800 million bushels of grain and 200 million bushels of oranges. At the same time, Italy produces 200 million bushels of grain and 100 million bushels of oranges. Which statement regarding absolute advantage is true?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Assume that in the United States, the opportunity cost of one bottle of wine is four loaves of bread, while in France, the opportunity cost of one bottle of wine is two loaves of bread. If the terms of trade are three loaves of bread for one bottle of wine:

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

It takes Melissa eight hours to produce a bushel of corn and two hours to wash and polish a car. It takes Greg six hours to produce a bushel of corn and one hour to wash and polish a car. Therefore:

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _ has the absolute advantage in producing corn and _ has the absolute advantage in producing watches.

(Multiple Choice)

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Question 4

Which of these is a typical limitation in how an infant industry is protected?

(Multiple Choice)

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Question 5

One problem with the infant industry argument is that in developing nations:

(Multiple Choice)

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Question 6

In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Based on the given information, which statement is correct?

(Multiple Choice)

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Question 7

From a practical perspective, trade restrictions are often placed because:

(Multiple Choice)

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Question 8

The maximum amount of a good that may be imported during a specified period of time is called:

(Multiple Choice)

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Question 9

Derland is a modern economy with a highly educated labor force and an average wage of $50,000 per year. Samland is a poor country where the labor force has an average education level of 5 years of schooling and an average wage of $600 per year. Which trade policy would be likely to have the most long-run impact in raising wages in Samland?

(Multiple Choice)

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Question 10

Econostan can produce a widget at the cost of one thingamajig. Its trading partner can produce the same widget at a cost of two thingamajigs. Based on this information, which statement is true?

(Multiple Choice)

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Question 11

Trade between two countries:

(Multiple Choice)

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Question 12

Infant industries are given a government's protection to allow them time to develop comparative advantages and/or to survive in the global environment.

(True/False)

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Question 13

In international trade, when we say that Brazil is "dumping" in the United States, this is indicating that:

(Multiple Choice)

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Question 14

The effects of a tariff are:

(Multiple Choice)

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Question 15

Manipulating the amount of currency available to foreigners has the effect of restricting trade.

(True/False)

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Question 16

International trade produces only "winners."

(True/False)

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Question 17

(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein? Cabbages Oranges Econoland 50,000 40,000 Macroland 80,000 72,000

(Multiple Choice)

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Question 18

Which statement concerning the infant industry argument is NOT correct?

(Multiple Choice)

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Question 19

All of these are arguments against free trade, EXCEPT:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 252

Assume that in the United States, the opportunity cost of one bottle of wine is four loaves of bread, while in France, the opportunity cost of one bottle of wine is two loaves of bread. If the terms of trade are three loaves of bread for one bottle of wine:

It takes Melissa eight hours to produce a bushel of corn and two hours to wash and polish a car. It takes Greg six hours to produce a bushel of corn and one hour to wash and polish a car. Therefore:

(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _ has the absolute advantage in producing corn and _ has the absolute advantage in producing watches.

Which of these is a typical limitation in how an infant industry is protected?

One problem with the infant industry argument is that in developing nations:

In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Based on the given information, which statement is correct?

From a practical perspective, trade restrictions are often placed because:

The maximum amount of a good that may be imported during a specified period of time is called:

Econostan can produce a widget at the cost of one thingamajig. Its trading partner can produce the same widget at a cost of two thingamajigs. Based on this information, which statement is true?

Trade between two countries:

Infant industries are given a government's protection to allow them time to develop comparative advantages and/or to survive in the global environment.

In international trade, when we say that Brazil is "dumping" in the United States, this is indicating that:

The effects of a tariff are:

Manipulating the amount of currency available to foreigners has the effect of restricting trade.

International trade produces only "winners."

(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein? Cabbages Oranges Econoland 50,000 40,000 Macroland 80,000 72,000

Which statement concerning the infant industry argument is NOT correct?

All of these are arguments against free trade, EXCEPT:

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

Open Economy Macroeconomics

Filters

Exam 15: International Trade

Assume that in the United States, the opportunity cost of one bottle of wine is four loaves of bread, while in France, the opportunity cost of one bottle of wine is two loaves of bread. If the terms of trade are three loaves of bread for one bottle of wine:

It takes Melissa eight hours to produce a bushel of corn and two hours to wash and polish a car. It takes Greg six hours to produce a bushel of corn and one hour to wash and polish a car. Therefore:

(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _____ has the absolute advantage in producing corn and _____ has the absolute advantage in producing watches.

Which of these is a typical limitation in how an infant industry is protected?

One problem with the infant industry argument is that in developing nations:

In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Based on the given information, which statement is correct?

From a practical perspective, trade restrictions are often placed because:

The maximum amount of a good that may be imported during a specified period of time is called:

Econostan can produce a widget at the cost of one thingamajig. Its trading partner can produce the same widget at a cost of two thingamajigs. Based on this information, which statement is true?

Trade between two countries:

Infant industries are given a government's protection to allow them time to develop comparative advantages and/or to survive in the global environment.

In international trade, when we say that Brazil is "dumping" in the United States, this is indicating that:

The effects of a tariff are:

Manipulating the amount of currency available to foreigners has the effect of restricting trade.

International trade produces only "winners."

(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein? Cabbages Oranges Econoland 50,000 40,000 Macroland 80,000 72,000

Which statement concerning the infant industry argument is NOT correct?

All of these are arguments against free trade, EXCEPT:

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

Open Economy Macroeconomics

Filters

(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _ has the absolute advantage in producing corn and _ has the absolute advantage in producing watches.