Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Trade only occurs if there are only winners, and no losers, as a result of the trade.

Accepted Answer

A) True 
 B)False

Question 3

Table 13.6
Production and
Consumption Production
Without Trade With Trade   Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.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?

Accepted Answer

A) 30 
B) 100 
C) 150 
D) 900 
A) 30 
B) 100 
C) 150 
D) 900

Question 4

Table 13.6
Production and
Consumption Production
Without Trade With Trade   Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.With trade, what is the total gain in hat production?

Accepted Answer

A) 150 
B) 300 
C) 400 
D) 650 
A) 150 
B) 300 
C) 400 
D) 650

Question 5

What is a consequence of increasing marginal costs of producing digital music players in Japan?

Accepted Answer

A) Japan will not export digital music players. 
B) Japan will stop short of complete specialisation in the production of digital music players. 
C) Japan will import digital music players from countries that don't experience increasing marginal costs. 
D) Japan will likely impose trade restrictions on imported digital music players. 
A) Japan will not export digital music players. 
B) Japan will stop short of complete specialisation in the production of digital music players. 
C) Japan will import digital music players from countries that don't experience increasing marginal costs. 
D) Japan will likely impose trade restrictions on imported digital music players.

Question 6

Table 13.6
Production and
Consumption Production
Without Trade With Trade   Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.All of the following are terms of trade that could possibly benefit both countries except

Accepted Answer

A) 1/5 of a hat : 1 clock. 
B) 1/3 of a hat : 1 clock. 
C) 1/2 of a hat : 1 clock. 
D) 3/4 of a hat : 1 clock. 
A) 1/5 of a hat : 1 clock. 
B) 1/3 of a hat : 1 clock. 
C) 1/2 of a hat : 1 clock. 
D) 3/4 of a hat : 1 clock.

Question 7

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

Accepted Answer

A) agree to meet specific quality standards required by the importing country. 
B) limit their exports to a country. 
C) pay a tax on all products they export. 
D) must agree to import an equal quantity of products that they export. 
A) agree to meet specific quality standards required by the importing country. 
B) limit their exports to a country. 
C) pay a tax on all products they export. 
D) must agree to import an equal quantity of products that they export.

Question 8

Tastes for products such as beer differ.As a result

Accepted Answer

A) we see countries specialising completely in the production of beer. 
B) consumers of beer have difficulty deciding what type of imported beer to buy. 
C) the quality of imported beer is less than it could be. 
D) different countries may each have a comparative advantage in producing different types of beer. 
A) we see countries specialising completely in the production of beer. 
B) consumers of beer have difficulty deciding what type of imported beer to buy. 
C) the quality of imported beer is less than it could be. 
D) different countries may each have a comparative advantage in producing different types of beer.

Question 9

What do economists call trade between countries that is without restrictions?

Accepted Answer

A) Unobstructed commerce. 
B) Unabated trade. 
C) Free trade. 
D) Unencumbered trade. 
A) Unobstructed commerce. 
B) Unabated trade. 
C) Free trade. 
D) Unencumbered trade.

Question 10

Free trade ________ living standards by ________ economic efficiency.

Accepted Answer

A) raises; increasing 
B) lowers; decreasing 
C) raises; equalising 
D) lowers; eliminating 
A) raises; increasing 
B) lowers; decreasing 
C) raises; equalising 
D) lowers; eliminating

Question 11

Which of the following describes the infant industry argument for protectionism?

Accepted Answer

A) An industry must be protected in its early stages of development so that firms can compete with government-subsidised foreign competition. 
B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defence in emergencies. 
C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. 
D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. 
A) An industry must be protected in its early stages of development so that firms can compete with government-subsidised foreign competition. 
B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defence in emergencies. 
C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. 
D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.

Question 12

Many people assume that if child workers in developing countries weren't working in factories, they would be in school.In fact, children in developing countries

Accepted Answer

A) split their time evenly between work and school. 
B) usually have few good alternatives to work. 
C) are only allowed to work if they have attended school up to age 15. 
D) who work are relatively rare, as most do attend school full time. 
A) split their time evenly between work and school. 
B) usually have few good alternatives to work. 
C) are only allowed to work if they have attended school up to age 15. 
D) who work are relatively rare, as most do attend school full time.

Question 13

What are three primary reasons for the growth of international trade over the past 50 years?

Accepted Answer

The increase in trade is the r

Question 14

Table 13.6
Production and
Consumption Production
Without Trade With Trade   Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many clocks will Denmark consume?

Accepted Answer

A) 270 
B) 900 
C) 930 
D) 1200 
A) 270 
B) 900 
C) 930 
D) 1200

Question 15

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 16

Table 13.5   Table 13.5 shows the output per week for bows and arrows by Ahmet and MyLinh.
-Refer to Table 13.5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Accepted Answer

The answer of Table 13.5   Table 13.5 shows...

Question 17

Under autarky, domestic producer surplus is represented by the area

Accepted Answer

A) above the supply curve and below the equilibrium price. 
B) above the supply curve and below the demand curve. 
C) below the demand curve and above the equilibrium price. 
D) above the demand curve and below the supply curve. 
A) above the supply curve and below the equilibrium price. 
B) above the supply curve and below the demand curve. 
C) below the demand curve and above the equilibrium price. 
D) above the demand curve and below the supply curve.

Question 18

The best example of a quota from the list below is

Accepted Answer

A) a subsidy from the government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of tires that can be imported from a foreign country 
C) a 40% fee imposed on all imported tires 
D) a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry 
A) a subsidy from the government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of tires that can be imported from a foreign country 
C) a 40% fee imposed on all imported tires 
D) a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry

Question 19

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

Accepted Answer

A) Tariff. 
B) Quota. 
C) Quantity floor. 
D) Barricade. 
A) Tariff. 
B) Quota. 
C) Quantity floor. 
D) Barricade.

Question 20

Table 13.6
Production and
Consumption Production
Without Trade With Trade   Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.Prior to trade, what was the opportunity cost to produce 1 hat in Denmark?

Accepted Answer

A) 1/6 of a clock 
B) 2/3 of a clock 
C) 1)5 clocks 
D) 6 clocks 
A) 1/6 of a clock 
B) 2/3 of a clock 
C) 1)5 clocks 
D) 6 clocks

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

Trade only occurs if there are only winners, and no losers, as a result of the trade.

What is a consequence of increasing marginal costs of producing digital music players in Japan?

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

Tastes for products such as beer differ.As a result

What do economists call trade between countries that is without restrictions?

Free trade living standards by economic efficiency.

Which of the following describes the infant industry argument for protectionism?

Many people assume that if child workers in developing countries weren't working in factories, they would be in school.In fact, children in developing countries

What are three primary reasons for the growth of international trade over the past 50 years?

A tariff is a tax imposed by a government on

Table 13.5 Table 13.5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 13.5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Under autarky, domestic producer surplus is represented by the area

The best example of a quota from the list below is

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

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition: The Competitive Model in a More Realistic

Oligopoly: Markets With Few Competitors

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 13: Comparative Advantage and the Gains From International Trade

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

Trade only occurs if there are only winners, and no losers, as a result of the trade.

What is a consequence of increasing marginal costs of producing digital music players in Japan?

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

Tastes for products such as beer differ.As a result

What do economists call trade between countries that is without restrictions?

Free trade ________ living standards by ________ economic efficiency.

Which of the following describes the infant industry argument for protectionism?

Many people assume that if child workers in developing countries weren't working in factories, they would be in school.In fact, children in developing countries

What are three primary reasons for the growth of international trade over the past 50 years?

A tariff is a tax imposed by a government on

Table 13.5 Table 13.5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 13.5.Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Under autarky, domestic producer surplus is represented by the area

The best example of a quota from the list below is

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

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition: The Competitive Model in a More Realistic

Oligopoly: Markets With Few Competitors

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Free trade living standards by economic efficiency.