Exam 18: Gaining From International Trade

Figure 17-13 -In Figure 17-13, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how many baseballs will the United States import?

For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?

The theory of comparative advantage suggests that nations should produce a good if they

Compared to a no-trade situation, if Italy imported wine,

If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the

If the U.S. imposed an import quota on sugar, then in the U.S.

International trade and competition from abroad

As a result of a tariff on imports,

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,

Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries. Which of the following statements is true?

Figure 17-13 -In Figure 17-13, the world price of a baseball is $3. With free trade, how many baseballs will the United States import?

Figure 17-5 -Refer to Figure 17-5. If this country chooses to trade, the price of baskets in this country will be

Figure 17-13 -In Figure 17-13, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the amount of tariff revenue the United States government collects?

Figure 17-8 -Refer to Figure 17-8. The horizontal line at the world price of wagons represents the

An import quota on a product protects domestic industries by

Figure 17-9 -Refer to Figure 17-9. The size of the tariff on carnations is

Figure 17-8 -Refer to Figure 17-8. With trade, this country

As the result of specialization and trade, according to the law of comparative advantage, total output will

Which of the following restricts the volume of international trade?

When Iceland can generate a product using fewer labor hours and resources than the United States, an economist would say that Iceland had