Exam 19: International Trade

Figure 19.1: U.S. Real Income Growth and Net Exports to China -Consider Figure 19.1, which shows growth of U.S. real disposable income (left scale) and net exports to China (right). Explain how this graph supports, or does not, studies done by economists in the 1980s and 1990s on the impacts of trade on U.S. employment.

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Question 1

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Economists of the period found little impact of trade on employment. This is likely because most trade in that period was with other high-income countries. Because productivity, and therefore wages, was more or less the same, there were no real gains to "outsourcing."
However, in the 1990s and 2000s, as larger emerging markets (e.g., China) began to enter trade markets, they began to take some of the higher wage manufacturing jobs away from the United States. The graph above shows a slowing of real income growth beginning in about 1998; this coincides with the growth of the trade deficit with China. Thus, based on this (very oversimplified) graph, one could conclude that research that suggests the same is true.

When the central government runs a budget deficit, the economy runs the risk of ; this phenomenon is called .

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Question 2

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The basic motivation for international trade is that:

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Question 3

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U.S. imports' share of GDP is about percent, while exports' share was about percent in recent years.

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Question 4

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. In the East, with autarky, per person consumption of fish is kilos and per person chip consumption is kilos, assuming people spend half their incomes on each good.

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Question 5

The net flow of goods is associated with a net flow of financial assets in the opposite direction.

(True/False)

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Question 6

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. In autarky, the price of fish in terms of chips is in the West, and in the East the price is .

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Question 7

Economists call an economy in which each person produces all the goods he or she consumes a Robinson Crusoe economy.

(True/False)

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Question 8

According to a study conducted by Jagdish Bhagwati, Arvind Panagariya, and T. N. Srinivasan, the overall impacts of in the U.S. economy are small because .

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Question 9

Economists have done a good job of explaining the benefits of free trade.

(True/False)

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Question 10

As with new technology, trade can be viewed as a way for:

(Multiple Choice)

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Question 11

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the East, fish consumption and potato consumption , compared to autarky.

(Multiple Choice)

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Question 12

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the West, fish consumption and potato consumption , compared to autarky.

(Multiple Choice)

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Question 13

When the central government runs a budget deficit and the economy has a trade deficit, we call it the J-curve.

(True/False)

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Question 14

Worldwide, the trade balance must be:

(Multiple Choice)

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Question 15

According to the President's Council of Economic Advisers, "The gains from trade that take place are no different than the gains from trade . When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically."

(Multiple Choice)

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Question 16

In recent years, about ________ percent of the U.S. GDP was exported.

(Multiple Choice)

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Question 17

The national income identity can be rearranged to yield the relationship between:

(Multiple Choice)

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Question 18

Generally, the losses due to free trade are , and the benefits are .

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Question 19

If a country is better at producing all goods, it has a(n):

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Question 20

Showing 1 - 20 of 107

When the central government runs a budget deficit, the economy runs the risk of ; this phenomenon is called .

The basic motivation for international trade is that:

U.S. imports' share of GDP is about percent, while exports' share was about percent in recent years.

The net flow of goods is associated with a net flow of financial assets in the opposite direction.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. In autarky, the price of fish in terms of chips is in the West, and in the East the price is .

Economists call an economy in which each person produces all the goods he or she consumes a Robinson Crusoe economy.

According to a study conducted by Jagdish Bhagwati, Arvind Panagariya, and T. N. Srinivasan, the overall impacts of in the U.S. economy are small because .

Economists have done a good job of explaining the benefits of free trade.

As with new technology, trade can be viewed as a way for:

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the East, fish consumption and potato consumption , compared to autarky.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the West, fish consumption and potato consumption , compared to autarky.

When the central government runs a budget deficit and the economy has a trade deficit, we call it the J-curve.

Worldwide, the trade balance must be:

According to the President's Council of Economic Advisers, "The gains from trade that take place are no different than the gains from trade . When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically."

In recent years, about ________ percent of the U.S. GDP was exported.

The national income identity can be rearranged to yield the relationship between:

Generally, the losses due to free trade are , and the benefits are .

If a country is better at producing all goods, it has a(n):

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 19: International Trade

When the central government runs a budget deficit, the economy runs the risk of ________; this phenomenon is called ________.

The basic motivation for international trade is that:

U.S. imports' share of GDP is about ________ percent, while exports' share was about ________ percent in recent years.

The net flow of goods is associated with a net flow of financial assets in the opposite direction.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. In autarky, the price of fish in terms of chips is ________ in the West, and in the East the price is ________.

Economists call an economy in which each person produces all the goods he or she consumes a Robinson Crusoe economy.

According to a study conducted by Jagdish Bhagwati, Arvind Panagariya, and T. N. Srinivasan, the overall impacts of ________ in the U.S. economy are small because ________.

Economists have done a good job of explaining the benefits of free trade.

As with new technology, trade can be viewed as a way for:

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the East, fish consumption ________ and potato consumption ________, compared to autarky.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the West, fish consumption ________ and potato consumption ________, compared to autarky.

When the central government runs a budget deficit and the economy has a trade deficit, we call it the J-curve.

Worldwide, the trade balance must be:

According to the President's Council of Economic Advisers, "The gains from trade that take place ________ are no different than the gains from trade ________. When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically."

In recent years, about ________ percent of the U.S. GDP was exported.

The national income identity can be rearranged to yield the relationship between:

Generally, the losses due to free trade are ________, and the benefits are ________.

If a country is better at producing all goods, it has a(n):

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

Exchange Rates and International Finance

Parting Thoughts

Filters

When the central government runs a budget deficit, the economy runs the risk of ; this phenomenon is called .

U.S. imports' share of GDP is about percent, while exports' share was about percent in recent years.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. In autarky, the price of fish in terms of chips is in the West, and in the East the price is .

According to a study conducted by Jagdish Bhagwati, Arvind Panagariya, and T. N. Srinivasan, the overall impacts of in the U.S. economy are small because .

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the East, fish consumption and potato consumption , compared to autarky.

Refer to the following table when answering the following questions. Table 19.1: East and West Fish and Chip Production -Consider Table 19.1. With free trade in the West, fish consumption and potato consumption , compared to autarky.

According to the President's Council of Economic Advisers, "The gains from trade that take place are no different than the gains from trade . When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically."

Generally, the losses due to free trade are , and the benefits are .