FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 39: International Trade

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Economists prefer free trade to tariffs,and prefer tariffs to import quotas.

A) True
B) False

Correct Answer

verified

True

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

The organization created to oversee the provisions of multilateral trade agreements,resolve disputes under the international trade rules,and meet periodically to consider further trade liberalization is called the:

A) International Monetary Fund (IMF) .
B) World Trade Organization (WTO) .
C) Common Market Organization (CMO) .
D) International Trade Commission (ITC) .

E) None of the above
F) A) and D)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

(Consider This) According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\ 12 & \$ 5 & 2 \\10 & 4 & 4 \\7 & 3 & 7 \\4 & 2 & 11 \\1 & 1 & 16\end{array}$ Refer to the given data.With a $1-per-unit tariff,the quantities sold by foreign and domestic producers respectively will be:

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\ 12 & \$ 5 & 2 \\10 & 4 & 4 \\7 & 3 & 7 \\4 & 2 & 11 \\1 & 1 & 16\end{array}$ Refer to the given data.If the economy was opened to free trade and the world price of $1 prevailed,the price and quantity sold of this product would be:

Which of the following arguments for trade protection contends that new domestic industries need support to establish themselves and survive?

The World Trade Organization (WTO)is an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.

Frederic Bastiat's Petition of the Candlemakers most directly refutes which of the following arguments for protectionism?

International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.

Answer the question on the basis of the following information about the cost ratios for two products-fish (F) and chicken (C) -in countries Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world. Singsong: 1F = 2C Harmony: 1F = 4C Refer to the given information.In Singsong the domestic real cost of each chicken:

Which of the following statements is false?

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

Answer the question on the basis of the following information.Assume that by devoting all its resources to the production of X,nation Alpha can produce 20 units of X.By devoting all its resources to Y,Alpha can produce 30Y.Comparable figures for nation Beta are 60X and 40Y. Refer to the given information.There is no basis for trade between Alpha and Beta because Beta has an absolute advantage in the production of both goods.

In terms of absolute dollar volume,the top 3 leaders in world exports are:

Critics of the World Trade Organization (WTO) say that liberalized world trade does all of the following except:

Answer the question on the basis of the following production possibilities data for two countries,Alpha and Beta,which have populations of equal size. $\begin{array}{c}\quad\quad\underline{\text { Alpha's Production Possibilities }}\\\begin{array}{lll} \\ \text {Fish (Tons) }\\ \text {Chips (Tons) } \end{array}\begin{array}{c}\underline{\text {A }}\\ 80 \\0\end{array}\begin{array}{c}\underline{\text {B }}\\ 60 \\5\end{array}\begin{array}{c}\underline{\text {C }}\\ 40 \\10\end{array}\begin{array}{c}\underline{\text {D }}\\20 \\15\end{array}\begin{array}{c}\underline{\text {E }}\\0 \\20 \end{array}\end{array}$ $\begin{array}{c}\quad\quad\underline{\text { Beta's Production Possibilities }}\\\begin{array}{lll} \\ \text {Fish (Tons) }\\ \text {Chips (Tons) } \end{array}\begin{array}{c}\underline{\text {A }}\\240 \\0\end{array}\begin{array}{c}\underline{\text {B }}\\ 180 \\10\end{array}\begin{array}{c}\underline{\text {C }}\\120 \\20\end{array}\begin{array}{c}\underline{\text {D }}\\60 \\30\end{array}\begin{array}{c}\underline{\text {E }}\\0 \\40 \end{array}\end{array}$ Refer to the given data.The domestic opportunity cost of:

Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: $\begin{array}{c}\quad\quad\quad\underline{ \text {Latalia's Production Possibilities }}\\\begin{array}{lll}\\ \text {Pork (Tons) }\\ \text {Beans (Tons) }\end{array}\begin{array}{c}\underline{\text {A}}\\4\\0\end{array}\begin{array}{c}\underline{\text {B}}\\3\\5\end{array}\begin{array}{c}\underline{\text {C}}\\2\\10\end{array}\begin{array}{c}\underline{\text {D}}\\1\\15\end{array}\begin{array}{c}\underline{\text {E}}\\0\\20\end{array}\end{array}$ $\begin{array}{c}\quad\quad\quad\underline{\text {Trombonia's Production Possibilities }}\\\begin{array}{lll}\\ \text {Pork (Tons) }\\ \text {Beans (Tons) }\end{array}\begin{array}{c}\underline{\text {A}}\\8\\0\end{array}\begin{array}{c}\underline{\text {B}}\\6\\6\end{array}\begin{array}{c}\underline{\text {C}}\\4\\12\end{array}\begin{array}{c}\underline{\text {D}}\\2\\18\end{array}\begin{array}{c}\underline{\text {E}}\\0\\24\end{array}\end{array}$ Refer to the tables.If these two nations specialize on the basis of comparative advantage:

Answer the question on the basis of the following production possibilities data for Gamma and Sigma.All data are in tons. Gamma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$ Sigma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$ Refer to the given data.What are the limits of the terms of trade between Gamma and Sigma?

Differences in production efficiencies among nations in producing a particular good result from:

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\12 & \$ 5 & 2 \\10 & 4 & 4 \\7 & 3 & 7 \\4 & 2 & 11 \\1 & 1 & 16\end{array}$ Refer to the given data.The total amount of revenue collected from a $1-per-unit tariff on this product will be: