Exam 9: Comparative Advantage and the Gains From International Trade

Figure 9-4 Figure 9-4 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents domestic producer surplus?

Autarky is a situation in which a country

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries. This protectionism will cause the greatest harm to

Figure 9-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 9-5 shows the impact of this tariff. -Refer to Figure 9-5. With the tariff in place, the United States produces

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 is the value of consumer surplus?

Governments sometimes erect barriers to trade other than tariffs and quotas. Which of the following is not an example of this type of trade barrier?

Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?

Which of the following statements is false?

If Finland has an absolute advantage in the production of two goods compared to Latvia, Finland can still benefit from trade with Latvia.

Table 9-12 Production and Consumption Production Without Trade With Trade Estonia and Morocco can produce both swords and belts. Table 9-12 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-12. Which country has a comparative advantage in producing swords?

Globalization is the process of countries imposing trade restrictions on other countries.

Absolute advantage is

Goodyear's sales are now greater outside the United States than inside the United States.

Japan has developed a comparative advantage in designing and producing automobiles. The source of its comparative advantage in these products is

Figure 9-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 9-5 shows the impact of this tariff. -Refer to Figure 9-5. With the tariff in place, the United States consumes

Today, the United States charged an average tariff rate

At the beginning of 2013, with the tariff on Chinese tires having expired, Goodyear's profits ________ compared to the previous year, and Chinese tire imports ________.

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. What will the market price be?

Each year, the U.S. exports about 50 percent of its wheat crop.

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