Exam 9: Comparative Advantage and the Gains From International Trade

If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway.

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 Denmark gain compared to the "without trade" numbers?

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.

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?

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 clocks?

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.

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.Prior to trade, what was the opportunity cost to produce 1 clock in Belize?

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.Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound.What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

Jobs lost to foreign trade are generally easy to identify, but jobs created by foreign trade are generally less easy to identify.

Table 9-2 Sarita and Gabriel own S&G Bakery.Table 9-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 9-2.Select the statement that accurately interprets the data in the table.

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?

Foreign factories produce ________ of the shoes New Balance sells in the United States.

A quota is the same as a voluntary export restraint.

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?

Whenever a buyer and a seller agree to trade,

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

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

a.What is the World Trade Organization? b.When was it established? c.How many countries are members of the World Trade Organization?

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.

Today, ________ of shoes sold in the United States are made overseas.