Exam 16: Comparative Advantage and the Gains From International Trade

If all we know is that the opportunity cost of a car equals 100 refrigerators in France,and 200 refrigerators in Italy,we can conclude

One reason why there may be a bias against free trade is that

A quota typically increases the volume of imports,whereas a tariff typically decreases the volume of imports.

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/3 of a pair of pants in an hour.If there are 500 workers in the factory,then the maximum number of shirts that can be made in an hour is

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of vases that could be produced in one hour is

Mutually beneficial trade between two countries is possible only as long as

The terms of trade

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one vase is

Assume that India has a comparative advantage in producing a computer game.The United States has an absolute advantage in producing the same game.Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else.

If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following:

Politically,one reason trade restrictions are common is that

If Country A exports a good to Country B,who is made better off?

If Japan imposes a tariff on shoes from Argentina,then

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour.If there are 500 workers in the factory,what is opportunity cost of producing one pair of pants?

Tariffs

A high-wage country cannot afford free trade with a low-wage country.The high- wage country will either be undersold or its workers will be forced to accept lower living standards.

A quota is a

-What can be said regarding comparative advantage in production for the two countries shown in Figure 16-1?

One reason why there may be a bias against free trade is that

U.S.imports of sugar