Question 1

What are some of the gains from trade?

Accepted Answer

Lower prices for consumers,more goods an...

Question 2

The following table presents data on imports and exports as a percentage of gross domestic product (GDP)for select countries in 2015,based on data from the World Bank.
  
Why might some of these countries tend to have much larger values for imports and exports as a percentage of GDP in comparison to other countries?

Accepted Answer

These countries differ in terms of geogr...

Question 3

The North American Free Trade Agreement (NAFTA) was intended to increase U.S.trade with which other countries?

Accepted Answer

A)   Canada and Russia
B)   Brazil and Mexico
C)   Canada,Brazil,and Mexico
D)   Brazil and Panama
E)   Mexico and CanadaF) A) and C)
G) A) and D)

Question 4

Countries engaged in international trade to specialize in production based on

Accepted Answer

A)   relative levels of GDP.
B)   comparative advantage.
C)   relative exchange rates.
D)   relative inflation rates.
E)   relative unemployement rates.F) A) and E)
G) A) and D)

Question 5

To maximize total output,Smith should specialize in producing ________,whereas Ricardo should specialize in producing ________.

Accepted Answer

A)   computers; smartphones
B)   smartphones; computers
C)   computers; computers
D)   smartphones; smartphones
E)   smartphones and computers; neither goodF) A) and C)
G) A) and B)

Question 6

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Rosa has

Accepted Answer

A)   an absolute advantage in producing basketballs,but not footballs.
B)   an absolute advantage in producing footballs,but not basketballs.
C)   an absolute advantage in producing both goods.
D)   an absolute advantage in producing neither good.
E)   no comparative advantage.F) A) and C)
G) C) and E)

Question 7

If this economy produces more than 20 houses per year,the opportunity cost of a house will ________ because ________.

Accepted Answer

A)   decrease; production will be specialized
B)   increase; an input with a higher opportunity cost must be used
C)   decrease; inputs will be obtained at lower cost
D)   increase; all gains from trade have already been exploited
E)   remain the same; Natasha and Jameson produce in constant ratios regardless of level of outputF) B) and D)
G) All of the above

Question 8

The ability of one person or nation to produce more of a good while using the same quantity of resources as another is called a(n) ________ advantage.

Accepted Answer

A)   market
B)   absolute
C)   specialization
D)   comparative
E)   specificF) None of the above
G) A) and D)

Question 9

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Rosa's opportunity cost of one football is ________ basketballs.

Accepted Answer

A)   four
B)   one and a half
C)   six
D)   three
E)   eightF) C) and D)
G) None of the above

Question 10

In the past,Canada has agreed to set an upper limit on the total amount of softwood lumber exported to the United States.This is an example of a(n)

Accepted Answer

A)   import quota.
B)   export subsidy.
C)   voluntary quota.
D)   protective tariff.
E)   revenue tariff.F) A) and E)
G) A) and D)

Question 11

The trade-restriction view assumes that free trade is ________ and should be ________.

Accepted Answer

A)   helpful for an economy; encouraged
B)   helpful to the producers only; controlled
C)   helpful to the poor only; controlled
D)   harmful to domestic workers and producers; restricted
E)   harmful to domestic consumers; restrictedF) None of the above
G) A) and B)

Question 12

Briefly list and define the three major types of trade barriers most commonly used.

Accepted Answer

The three types of trade barriers most c...

Question 13

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

Accepted Answer

A)   Jager has an absolute advantage in producing cars,but not trucks.
B)   Jager has an absolute advantage in producing trucks,but not cars.
C)   Jager has an absolute advantage in producing both goods.
D)   Jager has an absolute advantage in producing neither good.
E)   Karl has a comparative advantage in producing both goods.F) D) and E)
G) A) and C)

Question 14

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,which of the following is true?

Accepted Answer

A)   Raven has both an absolute and a comparative advantage in baseball production.
B)   Raven has both an absolute and a comparative advantage in golf ball production.
C)   Raven has neither an absolute nor a comparative advantage in baseball production.
D)   Raven has neither an absolute nor a comparative advantage in golf ball production.
E)   Drew has both an absolute and a comparative advantage in baseball production.F) B) and E)
G) A) and B)

Question 15

Since 2000,world goods trade has

Accepted Answer

A)   doubled.
B)   tripled.
C)   remained the same.
D)   decreased by 10 percent.
E)   decreased by 25 percent.F) D) and E)
G) C) and D)

Question 16

Which of the following is NOT one of the four main reasons given for the persistence of trade barriers?

Accepted Answer

A)   national security
B)   protection of infant industries
C)   retaliation for dumping
D)   favors to special interests
E)   scarcity of natural resourcesF) A) and D)
G) A) and C)

Question 17

In the past decade,companies like Nike and Under Armour have set up manufacturing centers in Nicaragua in part due to the country's establishment of ________,allowing these companies to avoid standard corporate tax rates.

Accepted Answer

A)   "trade zones"
B)   "international zones"
C)   "production zones"
D)   "free zones"
E)   "tax zones"F) A) and C)
G) A) and B)

Question 18

The following graph depicts the market for a particular good in Dorne.Dorne was importing the good under free trade and then decided to impose a tariff.Use the graph to answer the following questions:
 
-What is the value of the tariff?

Accepted Answer

A)   2 percent
B)   $5
C)   $2
D)   $3
E)   25 percentF) B) and D)
G) All of the above

Question 19

For country A,an export is a good produced in

Accepted Answer

A)   country B and purchased by residents of country A.
B)   country A and purchased by residents of country A.
C)   country A and purchased by residents of country B.
D)   country B and purchased by residents of country B.
E)   any other country.F) None of the above
G) D) and E)

Question 20

The United States feels that it has become too dependent on oil from Saudi Arabia,so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia.This is an example of a(n)

Accepted Answer

A)   nontariff trade barrier.
B)   import quota.
C)   tariff.
D)   export subsidy.
E)   import subsidy.F) A) and D)
G) A) and E)

Exam 19: International Trade

What are some of the gains from trade?

Correct Answer
verified
Lower prices for consumers,more goods an...
View Answer

The following graph depicts the market for a particular good in Dorne.Dorne was importing the good under free trade and then decided to impose a tariff.Use the graph to answer the following questions: -What is the value of the tariff?

Correct Answer
verified

Countries engaged in international trade to specialize in production based on

Correct Answer
verified

In the past decade,companies like Nike and Under Armour have set up manufacturing centers in Nicaragua in part due to the country's establishment of ________,allowing these companies to avoid standard corporate tax rates.

Correct Answer
verified

In the past,Canada has agreed to set an upper limit on the total amount of softwood lumber exported to the United States.This is an example of a(n)

Correct Answer
verified

Use the following scenario to answer the following questions: Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour. -Based on the scenario,Rosa has

Correct Answer
verified

The United States feels that it has become too dependent on oil from Saudi Arabia,so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia.This is an example of a(n)

Correct Answer
verified

Correct Answer
verified

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,which of the following is true?

Correct Answer
verified

Which of the following is NOT one of the four main reasons given for the persistence of trade barriers?

Correct Answer
verified

Correct Answer
verified
These countries differ in terms of geogr...
View Answer

To maximize total output,Smith should specialize in producing ,whereas Ricardo should specialize in producing .

Correct Answer
verified

The ability of one person or nation to produce more of a good while using the same quantity of resources as another is called a(n) ________ advantage.

Correct Answer
verified

The trade-restriction view assumes that free trade is and should be .

Correct Answer
verified

Correct Answer
verified

For country A,an export is a good produced in

Correct Answer
verified

The North American Free Trade Agreement (NAFTA) was intended to increase U.S.trade with which other countries?

Correct Answer
verified

Briefly list and define the three major types of trade barriers most commonly used.

Correct Answer
verified
The three types of trade barriers most c...
View Answer

Since 2000,world goods trade has

Correct Answer
verified

If this economy produces more than 20 houses per year,the opportunity cost of a house will because .

Correct Answer
verified

Exam 19: International Trade

What are some of the gains from trade?

Correct AnswerverifiedLower prices for consumers,more goods an...View AnswerShow Answer

The following graph depicts the market for a particular good in Dorne.Dorne was importing the good under free trade and then decided to impose a tariff.Use the graph to answer the following questions: -What is the value of the tariff?

Correct AnswerverifiedShow Answer

Countries engaged in international trade to specialize in production based on

Correct AnswerverifiedShow Answer

In the past decade,companies like Nike and Under Armour have set up manufacturing centers in Nicaragua in part due to the country's establishment of ________,allowing these companies to avoid standard corporate tax rates.

Correct AnswerverifiedShow Answer

In the past,Canada has agreed to set an upper limit on the total amount of softwood lumber exported to the United States.This is an example of a(n)

Correct AnswerverifiedShow Answer

Use the following scenario to answer the following questions: Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour. -Based on the scenario,Rosa has

Correct AnswerverifiedShow Answer

The United States feels that it has become too dependent on oil from Saudi Arabia,so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia.This is an example of a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the four main reasons given for the persistence of trade barriers?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThese countries differ in terms of geogr...View AnswerShow Answer

To maximize total output,Smith should specialize in producing ________,whereas Ricardo should specialize in producing ________.

Correct AnswerverifiedShow Answer

The ability of one person or nation to produce more of a good while using the same quantity of resources as another is called a(n) ________ advantage.

Correct AnswerverifiedShow Answer

The trade-restriction view assumes that free trade is ________ and should be ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For country A,an export is a good produced in

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement (NAFTA) was intended to increase U.S.trade with which other countries?

Correct AnswerverifiedShow Answer

Briefly list and define the three major types of trade barriers most commonly used.

Correct AnswerverifiedThe three types of trade barriers most c...View AnswerShow Answer

Since 2000,world goods trade has

Correct AnswerverifiedShow Answer

If this economy produces more than 20 houses per year,the opportunity cost of a house will ________ because ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Lower prices for consumers,more goods an...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
These countries differ in terms of geogr...
View Answer

To maximize total output,Smith should specialize in producing ,whereas Ricardo should specialize in producing .

Correct Answer
verified

Correct Answer
verified

The trade-restriction view assumes that free trade is and should be .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The three types of trade barriers most c...
View Answer

Correct Answer
verified

If this economy produces more than 20 houses per year,the opportunity cost of a house will because .

Correct Answer
verified