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Exam 32: International Trade

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Question 51

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Snap and Bolt are two countries that both produce bananas and sugar.In Snap,each worker in a one-hour period can produce either 12 pounds of bananas or 3 pounds of sugar.In Bolt,each worker in a one-hour period can produce either 5 pounds of bananas or 2 pounds of sugar.Suppose both countries have constant opportunity cost of production and decide to specialize and exchange.The country that specializes in sugar is willing to sell 100 pounds of sugar for at least ________ pounds of bananas,and the other country will pay no more than ________ pounds of bananas.

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Snap's opportunity cost of producing 1 p...

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Question 52

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In recent years,the United States has

A) exported more services abroad than it has imported.
B) imported more services from abroad than it has exported.
C) had a small goods trade surplus with Japan.
D) had a large goods trade surplus with the rest of the world.
E) fallen to third behind Japan and Germany in the list of leading export nations (absolute volume basis) .

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Question 53

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Which two countries buy the most U.S.exports?

For nearly four decades,the United States has had a

Use the following scenario to answer the following questions: 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. -Based on the scenario,Ebenezer's opportunity cost of one hamburger is ________ hot dog(s) .

Explain what is likely to happen to the value of the trade balance during the business cycle.

Use the following graph to answer the following questions: -What is the price of a car if this is a nontrading (closed) economy?

A limit imposed on the volume of total imports of a particular good is known as a(n)

-Free trade is ________,because it ________ the size of the pie available to the economy.

According to the principle of comparative advantage,trade between two countries will benefit

Graphically illustrate the lost consumer surplus associated with imposing a quota on imports.What happens to this lost surplus?

For country A,an import is a good produced in

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,Dirk's opportunity cost of one basketball is ________ football(s) .

If a society's consumption possibilities are identical to its production possibilities,that society has a(n)

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

The United States feels that it has become too dependent on oil from Saudi Arabia,so it places a limit on the amount of oil that is imported from Saudi Arabia.This is an example of a(n)

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's opportunity cost of one car is ________ truck(s) .

The following figure illustrates the production possibilities for two countries,Russia and Canada.Assume that initially the two countries do not trade.Russia produces 40 cars and 5 tons of paper.Canada produces 16 cars and 42 tons of paper.You can assume cars and paper are measured in thousands of units. Suppose the two countries decide to completely specialize and trade.If they decide to trade 18 cars in exchange for 6 tons of paper,then after trade,Russia will be able to consume ________ more cars and ________ more paper.Canada will be able to consume ________ more cars and ________ more paper.

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.

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,Raven has