Exam 16: International Trade

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are, 60X and 40Y. -Refer to the above information. Alpha would prefer terms of trade at, or close to, 1X = 2/3 Y.

The World Trade Organization advocates new protections for intellectual property such as copyrights.

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Which is a valid counterargument to the call for higher tariffs to save Canadian jobs?

Suppose the domestic price of wheat is $3.50 per bushel in Canada, while the world price is $4.00 per bushel. Assuming no transportation costs, Canada will:

-Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product. With a P_cP_t per unit tariff, per unit revenue received by domestic and foreign producers respectively will be:

Barriers to free trade impair efficiency in the international allocation of resources.

-Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product. S_d + Q is the product supply curve after an import quota is imposed. A tariff of P_cP_t or an import quota of wy will:

-Refer to the above diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The opportunity cost of producing a:

As it relates to international trade, "dumping":

Given the following production possibilities schedules, it can be seen that:

-Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product. With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

The following is the Production possibilities data for two countries, Alpha and Beta, which have populations of equal size. -Refer to the above data. The domestic opportunity cost of:

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that:

The law of increasing opportunity costs limits international specialization.

The following table is domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. -Refer to the above data. With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

In terms of absolute volume, world trade is dominated by:

A licensing requirement, or unreasonable standard pertaining to the product quality and safety for a product that is imported into a country, is an example of:

A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that:

Refer to the tables below. Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities: