Exam 9: Comparative Advantage and the Gains From International Trade

The United States is a leading exporter of wheat.What explains the comparative advantage of the United States in wheat production?

A tariff is a numerical limit on the quantity of a good that can be imported.

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 statements is used to justify protectionism?

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 supplied by domestic producers?

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.

The main purpose of most tariffs and quotas is to

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

Figure 9-1 Figure 9-1 shows the U.S.demand and supply for leather footwear. -Refer to Figure 9-1.Under autarky, the producer surplus is

Today, few U.S.-based manufacturing firms make their products exclusively in the United States out of entirely U.S.-made parts.

In 1995 ________, which was established in 1948, was replaced by ________.

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.

Each year, the United States exports about 50 percent of its wheat crop.

With the proposed TPP tariff changes on imported shoes, New Balance would be ________ by the change in prices on some of the imported shoes sold by other companies that compete with New Balance's U.S.-produced shoes, and New Balance would be ________ because of the price it could now charge for the shoes it imports from TPP countries.

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

When Roxanne, a U.S.citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

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 hat in Denmark?

Economists believe the most persuasive argument for protectionism is to protect infant industries.But the argument has a drawback.What is this drawback?

An economic principle that explains why countries produce different goods and services is

A quota