Exam 17: International Trade

For each pair of jeans Casina produces,it gives up the opportunity to make 50 pounds of chocolate truffle.Marina can produce one pair of jeans for every 100 pounds of chocolate truffle it produces.Suppose the data is converted into production possibilities frontiers (PPFs),with constant opportunity costs,for both countries.While the pounds of chocolate truffle produced is measured on the vertical axis,the pairs of jeans produced are measured along the horizontal axis.Identify the correct statement in this case.

U.S.auto workers sometimes experience structural unemployment because of the popularity of foreign cars.Which of the following arguments would most likely be presented by an auto workers' union lobbying for trade restrictions to Congress?

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 T-shirt in Cambria is _____. Table 19.1 ? Cambria Bodoni Tons of rice per day T-shirts per day Tons of rice per day T-shirts per day 20 0 100 0 18 80 90 100 16 160 80 200 14 240 70 300 12 320 60 400 10 400 50 500 8 480 40 600 6 560 30 700 4 640 20 800 2 720 10 900 0 800 0 1,000

Which of the following is true of the terms of trade?

In determining comparative advantage,the cost of producing a good is measured in terms of:

The cost of the resources used by domestic producer groups,including lobbying fees,propaganda,and legal restrictions,is collectively referred to as the cost of:

The World Trade Organization (WTO):

Which of the following is a difference between the General Agreement on Tariffs and Trade (GATT)and the World Trade Organization (WTO)?

Economies of scale in the production of a good implies that:

The largest regional trading bloc is the _____.

The following graph shows the supply of and demand for baseballs in the United States.If the world price is $3 per baseball and a tariff of $1 per baseball is imposed,then the tariff revenue collected by the United States government is shown by the area _____.

The terms of trade refers to:

International trade equalizes the opportunity cost of producing any good around the world.

Which of the following is true of an export subsidy?

Which of the following is not correct about quotas?

The law of comparative advantage states that:

A country should export only those goods for which it has _____ relative to its trading partners.

A legal limit on the amount of a commodity that can be imported is known as:

Unless there are barriers to prevent free international trade,a country becomes an importer: