Exam 9: Comparative Advantage and the Gains From International Trade

Figure 9-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 9-5 shows the impact of this tariff. -Refer to Figure 9-5. The loss in domestic consumer surplus as a result of the tariff is equal to

Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________.

Table 9-3 Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 9-3. Select the statement that accurately interprets the data in the table.

Governments sometimes erect barriers to trade other than tariffs and quotas. Which of the following is not an example of this type of trade barrier?

Although the United States is the second largest exporting country, international trade is less important to the United States than it is to most other countries.

If Sweden exports cell phones to Denmark and Denmark exports butter to Sweden, which of the following would explain this pattern of trade?

In 2016, the largest exporter in the world was

Disagreements about whether the U.S. government should regulate international trade

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3. What is the area that represents the deadweight loss as a result of the quota?

The process of countries becoming more open to foreign trade and investment is known as outsourcing.

Figure 9-4 Figure 9-4 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?

If Canada has a comparative advantage over Mexico in the production of timber, then

Imports are goods and services bought domestically but produced in other countries.

Which of the following is the best example of a voluntary export restraint?

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

Today, the United States charges an average tariff rate of less than 1.5 percent.

Table 9-11 Output per hour Production and Production of work Consumption without Trade with Trade Denmark and Belize can produce both clocks and hats. Each country has a total of 200 available labor hours for the production of clocks and hats. Table 9-11 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Belize consume?

In 1995 ________, which was established in 1948, was replaced by ________.

If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway.

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2. Without the tariff in place, the United States produces