Question 1

When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is

Accepted Answer

A) both a German and a Canadian import. 
B) a German import and a Canadian export. 
C) a German export and a Canadian import. 
D) neither an export nor an import for either country. 
A) both a German and a Canadian import. 
B) a German import and a Canadian export. 
C) a German export and a Canadian import. 
D) neither an export nor an import for either country.

Question 2

Table 9-1
   
Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

Accepted Answer

A) Linda has a comparative advantage in dog bathing. 
B) Sandy has an absolute advantage in dog bathing. 
C) Sandy has a comparative advantage in dog bathing. 
D) Linda has a comparative advantage in dog grooming and dog bathing. 
A) Linda has a comparative advantage in dog bathing. 
B) Sandy has an absolute advantage in dog bathing. 
C) Sandy has a comparative advantage in dog bathing. 
D) Linda has a comparative advantage in dog grooming and dog bathing.

Question 3

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.What is the opportunity cost to produce 1 clock in Belize?

Accepted Answer

A) 1/2 of a hat 
B) 2/3 of a hat 
C) 1.5 hats 
D) 2 hats 
A) 1/2 of a hat 
B) 2/3 of a hat 
C) 1.5 hats 
D) 2 hats

Question 4

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 Denmark consume?

Accepted Answer

A) 150 
B) 180 
C) 270 
D) 400 
A) 150 
B) 180 
C) 270 
D) 400

Question 5

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

Accepted Answer

A) True 
 B)False

Question 6

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 clocks will Belize gain compared to the "without trade" numbers?

Accepted Answer

A) -100 
B) 100 
C) 120 
D) 250 
A) -100 
B) 100 
C) 120 
D) 250

Question 7

Table 9-5
   
Table 9-5 shows the output per week for bows and arrows by Ahmet and MyLinh.
-Refer to Table 9-5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Accepted Answer

The answer of Table 9-5
   
Table 9-5 shows...

Question 8

If Japanese workers are more productive than French workers, then trade between Japan and France

Accepted Answer

A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want. 
B) cannot take place because Japanese goods and services will be less expensive than French goods and services. 
C) cannot take place until French workers become more productive. 
D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. 
A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want. 
B) cannot take place because Japanese goods and services will be less expensive than French goods and services. 
C) cannot take place until French workers become more productive. 
D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

Question 9

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.
a.Which country has an absolute advantage in the production of handbags and jackets?
b.Which country has a comparative advantage in the production of handbags?
c.Which country has a comparative advantage in the production of jackets?

Accepted Answer

a.Thailand has an absolute advantage in

Question 10

A tariff is a tax imposed by a government on

Accepted Answer

A) exports. 
B) services. 
C) imports. 
D) luxury items. 
A) exports. 
B) services. 
C) imports. 
D) luxury items.

Question 11

In the 1930s, the United States charged an average tariff rate ________.Today, the rate is ________.

Accepted Answer

A) of 100 percent; 20 percent 
B) above 50 percent; less than 1.5 percent 
C) of less than 10 percent; over 40 percent 
D) of 17 percent; 33 percent 
A) of 100 percent; 20 percent 
B) above 50 percent; less than 1.5 percent 
C) of less than 10 percent; over 40 percent 
D) of 17 percent; 33 percent

Question 12

The selling of a product for a price below its cost of production is called

Accepted Answer

A) fair competition. 
B) dumping. 
C) unfair competition. 
D) operating at a loss. 
A) fair competition. 
B) dumping. 
C) unfair competition. 
D) operating at a loss.

Question 13

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.What is the opportunity cost to produce 1 clock in Denmark?

Accepted Answer

A) 1/6 of a hat 
B) 1/2 of a hat 
C) 2 hats 
D) 6 hats 
A) 1/6 of a hat 
B) 1/2 of a hat 
C) 2 hats 
D) 6 hats

Question 14

Whenever a buyer and a seller agree to trade,

Accepted Answer

A) the agreement is made based on absolute advantage. 
B) they must have identical opportunity costs in producing their respective products. 
C) one party will always be worse off. 
D) both must believe they will be made better off. 
A) the agreement is made based on absolute advantage. 
B) they must have identical opportunity costs in producing their respective products. 
C) one party will always be worse off. 
D) both must believe they will be made better off.

Question 15

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

Accepted Answer

A) True 
 B)False

Question 16

Table 9-1
   
Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

Accepted Answer

A) Sandy has a comparative advantage in dog grooming. 
B) Linda has a comparative advantage in dog grooming. 
C) Linda has a comparative advantage in dog grooming and dog bathing. 
D) Sandy has a comparative advantage in dog bathing. 
A) Sandy has a comparative advantage in dog grooming. 
B) Linda has a comparative advantage in dog grooming. 
C) Linda has a comparative advantage in dog grooming and dog bathing. 
D) Sandy has a comparative advantage in dog bathing.

Question 17

How have U.S.imports and exports, as a fraction of GDP, changed from 1970 to the present?

Accepted Answer

Since 1950, both exports and imports hav

Question 18

Measuring the impact of a quota or tariff on the U.S.economy is an example of ________.Stating that a quota or tariff should be eliminated is an example of ________.

Accepted Answer

A) statistical analysis; economic analysis 
B) positive analysis; normative analysis 
C) econometric analysis; protectionism 
D) trade analysis; an opinion 
A) statistical analysis; economic analysis 
B) positive analysis; normative analysis 
C) econometric analysis; protectionism 
D) trade analysis; an opinion

Question 19

Economists studying the effect of the China shock on the U.S.economy point out that the firms most hurt by Chinese imports have been

Accepted Answer

A) evenly distributed across the United States. 
B) almost exclusively located in the Northeast. 
C) concentrated in certain states, particularly in the Midwest and Southeast. 
D) located primarily along the Pacific coast. 
A) evenly distributed across the United States. 
B) almost exclusively located in the Northeast. 
C) concentrated in certain states, particularly in the Midwest and Southeast. 
D) located primarily along the Pacific coast.

Question 20

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Accepted Answer

The anti-globalization argument against

When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

Table 9-5 Table 9-5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 9-5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

If Japanese workers are more productive than French workers, then trade between Japan and France

A tariff is a tax imposed by a government on

In the 1930s, the United States charged an average tariff rate .Today, the rate is .

The selling of a product for a price below its cost of production is called

Whenever a buyer and a seller agree to trade,

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

How have U.S.imports and exports, as a fraction of GDP, changed from 1970 to the present?

Measuring the impact of a quota or tariff on the U.S.economy is an example of .Stating that a quota or tariff should be eliminated is an example of .

Economists studying the effect of the China shock on the U.S.economy point out that the firms most hurt by Chinese imports have been

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 9: Comparative Advantage and the Gains From International Trade

When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

Table 9-5 Table 9-5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 9-5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

If Japanese workers are more productive than French workers, then trade between Japan and France

A tariff is a tax imposed by a government on

In the 1930s, the United States charged an average tariff rate ________.Today, the rate is ________.

The selling of a product for a price below its cost of production is called

Whenever a buyer and a seller agree to trade,

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

How have U.S.imports and exports, as a fraction of GDP, changed from 1970 to the present?

Measuring the impact of a quota or tariff on the U.S.economy is an example of ________.Stating that a quota or tariff should be eliminated is an example of ________.

Economists studying the effect of the China shock on the U.S.economy point out that the firms most hurt by Chinese imports have been

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

In the 1930s, the United States charged an average tariff rate .Today, the rate is .

Measuring the impact of a quota or tariff on the U.S.economy is an example of .Stating that a quota or tariff should be eliminated is an example of .