Exam 7: Comparative Advantage and the Gains From International Trade

Figure 9-5 Bragabong currently both produces and imports almonds. The government of Bragabong decides to restrict international trade in almonds by imposing a quota that allows imports of only 10 million kilos each year. Figure 9-5 shows the estimated demand and supply curves for almonds in Bragabong and the results of imposing the quota. -Use Figure 9-5 to answer questions a-j . a.If there is no quota what is the domestic price of almonds and what is the quantity of almonds demanded by consumers? b.If there is no quota how many kilos of almonds would domestic producers supply and what quantity would be imported? c.If there is no quota what is the dollar value of consumer surplus? d.If there is no quota what is the dollar value of producer surplus received by producers in Bragabong? e.If there is no quota what is the revenue received by foreign producers who supply almonds to Bragabong? f.With a quota in place what is the price that consumers of Bragabong must now pay and what is the quantity demanded? g.With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h.With a quota in place what is the dollar value of producer surplus received by producers in Bragabong? Are domestic producers better off? i.Calculate the revenue to foreign producers who are granted permission to sell in Bragabong after the imposition of the quota. j.Calculate the deadweight loss as a result of the quota.

(Essay)

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Question 81

Which of the following statements is true?

(Multiple Choice)

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Question 82

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

(Multiple Choice)

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Question 83

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

(True/False)

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Question 84

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 are the values of consumer surplus and domestic producer surplus?

(Multiple Choice)

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Question 85

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

(Multiple Choice)

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Question 86

Which of the following is not a source of comparative advantage?

(Multiple Choice)

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Question 87

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.

(Multiple Choice)

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Question 88

If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada,which of the following would explain this pattern of trade?

(Multiple Choice)

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Question 89

Examples of ________ show how trade between two countries can make each better off.

(Multiple Choice)

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Question 90

Countries that engage in trade will tend to specialize in the production of goods and services in which they have and will these goods and services.

(Multiple Choice)

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Question 91

A consequence of increasing marginal costs of producing digital music players in Japan is

(Multiple Choice)

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Question 92

Assume that China has a comparative advantage in producing corn and exports corn to Japan.We can conclude that

(Multiple Choice)

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Question 93

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

(Essay)

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Question 94

How have U.S.imports and exports,as a fraction of GDP,changed from 1950 to the present?

(Essay)

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Question 95

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.Without the tariff in place,the United States produces

(Multiple Choice)

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Question 96

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.The loss in domestic consumer surplus as a result of the tariff is equal to the area

(Multiple Choice)

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Question 97

The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialization in production.State three reasons why this is case.

(Essay)

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Question 98

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.What is the area that represents the deadweight loss as a result of the quota?

(Multiple Choice)

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Question 99

Whenever a buyer and a seller agree to trade,

(Multiple Choice)

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Question 100

Showing 81 - 100 of 124

Which of the following statements is true?

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

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

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 are the values of consumer surplus and domestic producer surplus?

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

Which of the following is not a source of comparative advantage?

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 Canada imports fishing poles from Mexico and Mexico imports bacon from Canada,which of the following would explain this pattern of trade?

Examples of ________ show how trade between two countries can make each better off.

Countries that engage in trade will tend to specialize in the production of goods and services in which they have and will these goods and services.

A consequence of increasing marginal costs of producing digital music players in Japan is

Assume that China has a comparative advantage in producing corn and exports corn to Japan.We can conclude that

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

How have U.S.imports and exports,as a fraction of GDP,changed from 1950 to the present?

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.Without the tariff in place,the United States produces

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.The loss in domestic consumer surplus as a result of the tariff is equal to the area

The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialization in production.State three reasons why this is case.

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.What is the area that represents the deadweight loss as a result of the quota?

Whenever a buyer and a seller agree to trade,

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Comparative Advantage and the Gains From International Trade

Which of the following statements is true?

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

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

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 are the values of consumer surplus and domestic producer surplus?

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

Which of the following is not a source of comparative advantage?

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 Canada imports fishing poles from Mexico and Mexico imports bacon from Canada,which of the following would explain this pattern of trade?

Examples of ________ show how trade between two countries can make each better off.

Countries that engage in trade will tend to specialize in the production of goods and services in which they have ________ and will ________ these goods and services.

A consequence of increasing marginal costs of producing digital music players in Japan is

Assume that China has a comparative advantage in producing corn and exports corn to Japan.We can conclude that

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

How have U.S.imports and exports,as a fraction of GDP,changed from 1950 to the present?

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.Without the tariff in place,the United States produces

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.The loss in domestic consumer surplus as a result of the tariff is equal to the area

The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialization in production.State three reasons why this is case.

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.What is the area that represents the deadweight loss as a result of the quota?

Whenever a buyer and a seller agree to trade,

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Countries that engage in trade will tend to specialize in the production of goods and services in which they have and will these goods and services.