Exam 19: International Trade

Use the following scenario to answer the next questions: Raven and Drew produce baseballs and golf balls. Raven can produce six baseballs per hour or four golf balls per hour. Drew can produce three baseballs per hour or one golf ball per hour. -Based on the scenario, which of the following is true?

The following table identifies the real value of exports, imports, and gross domestic product GDP) for the U.S. economy, measured in billions of dollars for a series of years. Use the table to answer the next questions: Year Exports Imports GDP 1950 58.4 70.5 2,183.987 1960 105.1 122.8 3,108.707 1970 187.0 253.6 4,722.012 1980 376.0 369.5 6,450.392 1990 645.0 721.5 8,955.041 2000 1,258.4 1,736.2 12,559.660 2010 1,776.6 2,235.4 14,783.809 -According to the table, in the year 2000, the real value of exports as a percentage of GDP was ________ and the real value of imports as a percentage of GDP was ________.

Use the following scenario to answer the next questions: Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour. -Based on the scenario, Dirk's opportunity cost of one footballis ________ basketball(s).

What does NAFTA stand for?

Explain what is likely to happen to the value of the trade balance during the business cycle.

The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n) ________ advantage.

Use the following scenario to answer the next questions: Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour. -Based on the scenario, which of the following is true?

Since 2000, world goods trade has

The trade-restriction view assumes that free trade is ________ and should be ________.

The members of NAFTA are the United States, Canada, and

Use the following scenario to answer the next questions: Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour. -Based on the scenario, Rosa has

When two countries decide to follow their comparative advantage and engage in specialization and exchange, both countries experience gains from trade because they are able to consume at a point beyond their production possibilities frontier. Illustrate and explain how this is possible.

According to the principle of comparative advantage, trade between two countries will benefit

What are the rationales for trade-restrictive policies?

Snap and Bolt are two countries that both produce bananas and sugar. In Snap, each worker in a one-hour period can produce either 12 pounds of bananas or 3 pounds of sugar. In Bolt, each worker in a one-hour period can produce either 5 pounds of bananas or 2 pounds of sugar. Suppose both countries have constant opportunity cost of production and decide to specialize and exchange. The country that specializes in sugar is willing to sell 100 pounds of sugar for at least ________ pounds of bananas, and the other country will pay no more than ________ pounds of bananas

While comparative advantage is the biggest reason many nations engage in trade, two other important reasons are

Use the following scenario to answer the next questions: Raven and Drew produce baseballs and golf balls. Raven can produce six baseballs per hour or four golf balls per hour. Drew can produce three baseballs per hour or one golf ball per hour. -Based on the scenario, Raven has

For country A, an export is a good produced in

Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?

In recent years, the United States has