Exam 9: Comparative Advantage and the Gains From International Trade

Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.The market price falls to $18.What is the value of consumer surplus?

Free trade refers to trade between countries without government restrictions.

Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What will be the quantity demanded?

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.

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

In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints, foreign producers

Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product.

A tariff is a tax imposed by a government on its own exports.