Exam 13: Comparative Advantage and the Gains From International Trade

Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 13.2.Select the statement that accurately interprets the data in the table.

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 hats will Belize gain compared to the 'without trade' numbers?

Many economists criticise protectionism because it causes losses to consumers and eliminates jobs in domestic industries that use protected products.Why, then, do some people support protectionism?

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 hats will Denmark consume?

A tariff is a tax imposed by a government on its own exports.

Between 1960 and 2010, Australia's imports increased from approximately

In the real world we don't observe countries completely specialising in the production of goods for which they have a comparative advantage.One reasons for this is

Table 13.3 Bryce and Tina are artisans who produce homemade candles and soap.Table 13.3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 13.3.Select the statement that accurately interprets the data in the table.

Figure 13.1 Suppose the government imposes a $0.50 per metric tariff on sugar imports.Figure 13-1 shows the demand and supply curves for sugar and the impact of this tariff. -Use Figure 13.1 to answer questions a-i. a.Following the imposition of the tariff, what is the price that domestic consumers must now pay and what is the quantity purchased? b.Calculate the value of consumer surplus with the tariff in place. c.What is the quantity supplied by domestic sugar producers with the tariff in place? d.Calculate the value of producer surplus received by Australian sugar producers with the tariff in place. e.What is the quantity of sugar imported with the tariff in place? f.What is the amount of tariff revenue collected by the government? g.The tariff has reduced consumer surplus.Calculate the loss in consumer surplus due to the tariff. h.What portion of the consumer surplus loss is redistributed to domestic producers? To the government? i.Calculate the deadweight loss due to the tariff.

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 Belize consume?

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

What is offshoring?

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

Imposing tariffs in cases of dumping

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called

Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 13.2.Select the statement that accurately interprets the data in the table.

What is a tax imposed by a government on imports of a good into a country?

What is autarky?

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.The country which has a comparative advantage in producing hats is

If the opportunity cost of production for two goods is different between two countries, then