Question 1

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

Accepted Answer

A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want. 
B) cannot take place because Japanese goods and services will be less expensive than French goods and services. 
C) cannot take place until French workers become more productive. 
D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. 
A) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want. 
B) cannot take place because Japanese goods and services will be less expensive than French goods and services. 
C) cannot take place until French workers become more productive. 
D) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

Question 2

Once a country has lost its comparative advantage in producing a good,its income will be ________ and its economy will be ________ if it switches from producing the good to importing it.

Accepted Answer

A) higher;less efficient 
B) higher;more efficient 
C) lower;less efficient 
D) lower;more efficient 
A) higher;less efficient 
B) higher;more efficient 
C) lower;less efficient 
D) lower;more efficient

Question 3

Table 13-6
 
  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?

Accepted Answer

A) 150 
B) 270 
C) 930 
D) 1200 
A) 150 
B) 270 
C) 930 
D) 1200

Question 4

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.

Accepted Answer

A) Tina has a comparative advantage in making soap. 
B) Bryce has a comparative advantage in making soap. 
C) Tina has a comparative advantage in making candles and making soap. 
D) Neither Bryce nor Tina has a comparative advantage in making soap. 
A) Tina has a comparative advantage in making soap. 
B) Bryce has a comparative advantage in making soap. 
C) Tina has a comparative advantage in making candles and making soap. 
D) Neither Bryce nor Tina has a comparative advantage in making soap.

Question 5

Exports are domestically produced goods and services

Accepted Answer

A) sold to other countries. 
B) sold to the government. 
C) sold at home. 
D) which are used to produce other goods and services. 
A) sold to other countries. 
B) sold to the government. 
C) sold at home. 
D) which are used to produce other goods and services.

Question 6

A quota is the same as a voluntary export restraint.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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.

Accepted Answer

A) Sarita has a comparative advantage in baking pies. 
B) Gabriel has an absolute advantage in baking cakes. 
C) Gabriel has a comparative advantage in baking pies. 
D) Gabriel has a comparative advantage in baking pies and baking cakes. 
A) Sarita has a comparative advantage in baking pies. 
B) Gabriel has an absolute advantage in baking cakes. 
C) Gabriel has a comparative advantage in baking pies. 
D) Gabriel has a comparative advantage in baking pies and baking cakes.

Question 9

Selling a product at a price below its cost is known as dumping.

Accepted Answer

A) True 
 B)False

Question 10

What does it mean for a country to have an absolute advantage in producing a product?

Accepted Answer

A country has an absolute adva

Question 11

Imposing tariffs in cases of dumping

Accepted Answer

A) is allowed under the WTO agreement. 
B) is not allowed under the WTO agreement. 
C) is not addressed by the WTO agreement. 
D) has never occurred,even though it is allowed under the WTO agreement. 
A) is allowed under the WTO agreement. 
B) is not allowed under the WTO agreement. 
C) is not addressed by the WTO agreement. 
D) has never occurred,even though it is allowed under the WTO agreement.

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

Once a country has lost its comparative advantage in producing a good,its income will be and its economy will be if it switches from producing the good to importing it.

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.

Exports are domestically produced goods and services

A quota is the same as a voluntary export restraint.

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

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.

Selling a product at a price below its cost is known as dumping.

What does it mean for a country to have an absolute advantage in producing a product?

Imposing tariffs in cases of dumping

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

Oligopoly: Firms in Less Competitive Markets

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: International Trade

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

Once a country has lost its comparative advantage in producing a good,its income will be ________ and its economy will be ________ if it switches from producing the good to importing it.

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.

Exports are domestically produced goods and services

A quota is the same as a voluntary export restraint.

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

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.

Selling a product at a price below its cost is known as dumping.

What does it mean for a country to have an absolute advantage in producing a product?

Imposing tariffs in cases of dumping

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

Oligopoly: Firms in Less Competitive Markets

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

Once a country has lost its comparative advantage in producing a good,its income will be and its economy will be if it switches from producing the good to importing it.