Exam 19: International Trade

Exhibit 19-5 -In Exhibit 19-5, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how many baseballs will be purchased in the United States?

Exhibit 19-3 -In Exhibit 19-3, if the world price of tulips is $1 and there are no trade restrictions, The Netherlands will

A nation's consumption possibilities frontier is

An effective import quota

An import quota is a

If production is subject to economies of scale,

Which of the following is not a problem with trade restrictions?

Robert Tadmur exports processed turkey and has an upward sloping supply curve. The supply curve indicates that Robert faces a marginal cost of $0.25 or less per pound for supplying the first few pounds. But every producer in this market sells turkey at the market clearing price of $0.50 per pound. The difference between the actual amount that Robert receives and what he would accept to supply the market clearing quantity is called

In autarky,

The World Trade Organization (WTO)

If there are no trade restrictions, a country will import a particular good if

Exhibit 19-1 -In Exhibit 19-1, the opportunity cost of a ton of rice in the United States is

International trade does all the following except

If U.S. consumption falls short of U.S. production, the U.S. imports the difference.

Which of the following is true concerning the impact of tariffs and quotas?

A major U.S. motive for negotiating a free-trade agreement with Mexico was to

A country should export only those goods for which, relative to its trading partners, it has the

The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that

Which country is the United States' largest trading partner?

World output will be maximized if each country