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Exam 32: International Trade

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Question 21

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Consider a country that is open to trade.Although the country imports and exports goods and services from more than 200 different nations,the bulk of its imports and exports tend to come from the same eight nations.Identify some possible reasons why this country obtains the majority of its imports and exports from only eight different nations as opposed to having the imports and exports more evenly split across the 200 different nations that it conducts trade with.

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Location: Trade in goods involves transp...

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Question 22

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Bans on imports,import quotas,voluntary quotas,and tariffs on goods

A) sometimes increase equilibrium quantities,but not prices.
B) increase equilibrium quantities,but decrease prices.
C) increase equilibrium quantity and prices.
D) decrease equilibrium quantity and prices.
E) decrease equilibrium quantities,but increase prices.

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Question 23

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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,Karl has

Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?

Esther and Ebenezer produce hamburgers and hot dogs.Esther can produce six hamburgers per hour or four hot dogs per hour.Ebenezer can produce three hamburgers per hour or one hot dog per hour.Who has the absolute advantage or comparative advantage in the production of hamburgers or hot dogs?

Assume there is a 35 percent tariff on bananas imported into the United States.Also,assume that the market competition is at its beginning and the law of one price is not in effect.If the domestic market price of Hawaiian bananas is $1.00 per bunch,imported bananas will sell for ________ per bunch.

Consider a country that produces shoes and does not engage in trade with other countries.Draw a supply/demand graph to illustrate consumer surplus and producer surplus.Suppose the country begins to import shoes.Draw a second graph to illustrate the new areas that represent consumer surplus and producer surplus.

Use the following scenario to answer the following questions: An economy has two workers,Smith and Ricardo.Each day they work,Smith can produce 4 computers or 16 smartphones,and Ricardo can produce 6 computers or 12 smartphones. -The opportunity cost for Ricardo to produce one computer is ________ smartphone(s) .

Use the following scenario to answer the following questions: Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year. -Jameson's opportunity cost of producing one pound of cheese is ________ house(s) .

An individual or country that has a comparative advantage in the production of one good

An economy that does not trade with the rest of the world is a(n) ________ economy.

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?

In the domestic market following the removal of an import quota,imports ________,domestic production ________,and prices ________.

-If Hong Kong has an open economy,it ________ with other countries.

Citizens can consume the largest quantities of goods and services in which of the following situations?

Use the following scenario to answer the following questions: Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year. -If both Natasha and Jameson produce the good for which each has a comparative advantage,total output of this economy will be

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?

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)

An example of a nonvoluntary import quota is

The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.