Question 1

Refer to the table above for a certain product's market in Econland. If Econland were entirely closed to international trade, the equilibrium price and quantity would be:

Accepted Answer

A)   $9 and 2,000 units
B)   $8 and 1,800 units
C)   $7 and 2,000 units
D)   $6 and 1,400 unitsE) None of the above
F) A) and D)

Question 2

d and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be: A)  $400, the total revenue (after tariff)  going to foreign producers would be $120, and the tariff revenue going to the government would be $80 B)  $240, the total revenue (after tariff)  going to foreign producers would be $240, and the tariff revenue going to the government would be $80 C)  $400, the total revenue (after tariff)  going to foreign producers would be $240, and the tariff revenue going to the government would be $80 D)  $240, the total revenue (after tariff)  going to foreign producers would be $120, and the tariff revenue going to the government would be $120" class="answers-bank-image d-inline" rel="preload" > Refer to the graph above, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:

Accepted Answer

A)   $400, the total revenue (after tariff)  going to foreign producers would be $120, and the tariff revenue going to the government would be $80
B)   $240, the total revenue (after tariff)  going to foreign producers would be $240, and the tariff revenue going to the government would be $80
C)   $400, the total revenue (after tariff)  going to foreign producers would be $240, and the tariff revenue going to the government would be $80
D)   $240, the total revenue (after tariff)  going to foreign producers would be $120, and the tariff revenue going to the government would be $120E) A) and D)
F) A) and C)

Question 3

The table below shows the output (either machines or wine)  that each unit of input in France and Germany can produce:  Refer to the table above. Based on the given information, we see that:

Accepted Answer

A)   France has a comparative advantage in producing wine
B)   Germany has a comparative advantage in producing wine
C)   Neither country has a comparative advantage in producing wine
D)   Germany can produce machines at a lower opportunity cost than FranceE) A) and C)
F) None of the above

Question 4

Refer to the graph above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. At what price will Econland be neither importing nor exporting the product?

Accepted Answer

A)   $1.00
B)   $1.50
C)   $2.00
D)   $2.50E) None of the above
F) A) and C)

Question 5

Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table:  Refer to the data above. The mutually-beneficial terms of trade will be:

Accepted Answer

A)   Less than 2 units of rice for 1 unit of corn
B)   Greater than 4 units of rice for 1 unit of corn
C)   Between 3 and 5 units of corn for 1 unit of rice
D)   Between 3 and 5 units of rice for 1 unit of cornE) B) and C)
F) A) and D)

Question 6

If a nation's labor can produce more of a good compared to labor in another nation, then we say that the first nation has a comparative advantage in producing that good.

Accepted Answer

A) True 
 B)False

Question 7

If two nations specialize in their respective comparative advantage and then trade with each other, both nations can consume output-combinations that are beyond their production possibilities curves.

Accepted Answer

A) True 
 B)False

Question 8

An example of a nontariff barrier would be:

Accepted Answer

A)   A minimum limit on the quantity of imports
B)   Excessive licensing requirements
C)   A tax on an imported product
D)   Voluntary export restraintsE) A) and D)
F) A) and C)

Question 9

Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by:

Accepted Answer

A)   The government
B)   Domestic consumers
C)   Domestic producers
D)   Foreign exportersE) All of the above
F) C) and D)

Question 10

Frederic Bastiat's satire clearly illustrates that:

Accepted Answer

A)   French candle makers would benefit from government restrictions on trade
B)   French consumers would benefit from a tariff on U.S. candles
C)   The arguments in favor of trade protectionism can sometimes be ridiculous
D)   The arguments in favor of protectionism are sometimes well-foundedE) A) and B)
F) A) and C)

Question 11

In 2011, the United States was the largest exporter in the world.

Accepted Answer

A) True 
 B)False

Exam 20: International Trade

In 2011, the United States was the largest exporter in the world.

Correct Answer
verified

If a nation's labor can produce more of a good compared to labor in another nation, then we say that the first nation has a comparative advantage in producing that good.

Correct Answer
verified

If two nations specialize in their respective comparative advantage and then trade with each other, both nations can consume output-combinations that are beyond their production possibilities curves.

Correct Answer
verified

An example of a nontariff barrier would be:

Correct Answer
verified

Frederic Bastiat's satire clearly illustrates that:

Correct Answer
verified

Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by:

Correct Answer
verified

The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce: Refer to the table above. Based on the given information, we see that:

Correct Answer
verified

Refer to the graph above, where S_d and D_d are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:

Correct Answer
verified

Refer to the table above for a certain product's market in Econland. If Econland were entirely closed to international trade, the equilibrium price and quantity would be:

Correct Answer
verified

Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table: Refer to the data above. The mutually-beneficial terms of trade will be:

Correct Answer
verified

Refer to the graph above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. At what price will Econland be neither importing nor exporting the product?

Correct Answer
verified

Exam 20: International Trade

In 2011, the United States was the largest exporter in the world.

Correct AnswerverifiedShow Answer

If a nation's labor can produce more of a good compared to labor in another nation, then we say that the first nation has a comparative advantage in producing that good.

Correct AnswerverifiedShow Answer

If two nations specialize in their respective comparative advantage and then trade with each other, both nations can consume output-combinations that are beyond their production possibilities curves.

Correct AnswerverifiedShow Answer

An example of a nontariff barrier would be:

Correct AnswerverifiedShow Answer

Frederic Bastiat's satire clearly illustrates that:

Correct AnswerverifiedShow Answer

Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by:

Correct AnswerverifiedShow Answer

The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce: Refer to the table above. Based on the given information, we see that:

Correct AnswerverifiedShow Answer

Refer to the graph above, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:

Correct AnswerverifiedShow Answer

Refer to the table above for a certain product's market in Econland. If Econland were entirely closed to international trade, the equilibrium price and quantity would be:

Correct AnswerverifiedShow Answer

Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table: Refer to the data above. The mutually-beneficial terms of trade will be:

Correct AnswerverifiedShow Answer

Refer to the graph above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. At what price will Econland be neither importing nor exporting the product?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Refer to the graph above, where S_d and D_d are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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