Exam 9: Comparative Advantage and the Gains From International Trade

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.With the tariff in place, the United States produces

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

Imposing tariffs in cases of dumping

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 the market price be?

If the opportunity costs of production for two goods is different between two countries, then

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called

In the United States, imports and exports make up more than half of GDP.

Table 9-6 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 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-6.Which country has a comparative advantage in producing hats?

Under autarky, domestic producer surplus is represented by the area

Dalton, Georgia, a town with a population less than 35,000, has developed into a leading producer of carpets, despite its small size.Some government officials argue that the success achieved by firms in Dalton in developing a comparative advantage in carpet making because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed.What objections do economists make to this argument in favor of trade barriers?

Table 9-4 Output Per Hour of Work Table 9-4 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand. -Refer to Table 9-4.Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries.This protectionism will cause the greatest harm to

Which of the following statements about the importance of trade to the U.S.economy is true?

Which of the following statements is true?

In 1930, the U.S.government attempted to help domestic firms that were harmed by the Great Depression by

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

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

Imposing trade barriers does all of the following except

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.With a quota in place, what is the quantity consumed in the domestic market?

Table 9-6 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 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Belize consume?