Question 1

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 an absolute advantage over Germany in producing either output
B)   Germany has an absolute disadvantage in producing wine
C)   Germany has no absolute advantage over France in producing either output
D)   France will see no economic basis for trading with GermanyE) None of the above
F) C) and D)

Question 2

In 2012, U.S. exports of services ______ U.S. imports of services by about _____.

Accepted Answer

A)   exceeded; $19B
B)   fell short of; $19B
C)   exceeded; $196 B
D)   fell short of; $196BE) B) and C)
F) A) and C)

Question 3

The slopes of the production possibilities curves for two nations reflect the:

Accepted Answer

A)   Relative prices of the resources in the two nations
B)   Amounts of imports and exports of the two nations
C)   Average income levels in the two nations
D)   Opportunity costs of production in the two nationsE) All of the above
F) C) and D)

Question 4

If a nation exports a product, then the price of that product in the nation:

Accepted Answer

A)   Will rise above the domestic (no-trade)  equilibrium price
B)   Will fall below the domestic (no-trade)  equilibrium price
C)   Will remain the same as the domestic (no-trade)  equilibrium price
D)   May either rise or fall, depending on the productE) B) and D)
F) A) and D)

Question 5

Import tariffs benefit the consumers of the product involved.

Accepted Answer

A) True 
 B)False

Question 6

The use of tariffs and quotas for trade protection results in:

Accepted Answer

A)   Lower prices for domestic consumers
B)   Less revenue for government
C)   Less efficiency in the economy
D)   Less rent-seeking activityE) A) and D)
F) All of the above

Question 7

Common arguments often raised to present the case for protectionism include the following, except:

Accepted Answer

A)   Protecting infant industries until they mature
B)   Protection against foreign suppliers' dumping
C)   Raising domestic employment in specific industries
D)   Reducing the price of the product to consumersE) A) and B)
F) All of the above

Question 8

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd)  and Column 3 is the quantity supplied domestically (Qsd) . dd)  and Column 3 is the quantity supplied domestically (Qsd) .   Refer to the table above. If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will: A)  Neither export nor import the product B)  Export some units of the product C)  Import some units of the product D)  Not produce the product" class="answers-bank-image d-inline" rel="preload" > Refer to the table above. If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will:

Accepted Answer

A)   Neither export nor import the product
B)   Export some units of the product
C)   Import some units of the product
D)   Not produce the productE) B) and C)
F) B) and D)

Question 9

Specialization and trade based on comparative advantage allow nations to attain the following results, except:

Accepted Answer

A)   Higher combined output
B)   Higher consumption and standard of living
C)   Rising total employment
D)   Consuming combinations of products that are outside their PPCsE) A) and C)
F) B) and C)

Question 10

Which nation had the largest share of world exports in 2011?

Accepted Answer

A)   Japan
B)   Germany
C)   China
D)   United StatesE) A) and D)
F) B) and C)

Question 11

A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

Accepted Answer

A)   Consumer tastes and preferences
B)   Resource availability and technological capabilities
C)   The nations' incomes and income distribution
D)   Unemployment and inflation ratesE) A) and B)
F) C) and D)

Question 12

In the United States, exports of goods and services accounted for about what percentage of GDP (total output)  in 2011?

Accepted Answer

A)   6 percent
B)   14 percent
C)   24 percent
D)   42 percentE) A) and C)
F) None of the above

Question 13

Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____:

Accepted Answer

A)   Comparative advantage; resource endowments
B)   Absolute advantage; comparative advantage
C)   Absolute advantage; resource endowments
D)   Comparative advantage; absolute advantageE) B) and D)
F) A) and B)

Question 14

An import-licensing requirement, or import restrictions pertaining to the product quality and safety, are examples of:

Accepted Answer

A)   Protective tariffs
B)   Nontariff barriers
C)   Voluntary export restrictions
D)   Quotas on imported productsE) A) and D)
F) B) and D)

Question 15

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Accepted Answer

A) True 
 B)False

Question 16

Autos and chemicals are in million of units in the following production possibilities tables:  The data in the tables above suggest that production in:

Accepted Answer

A)   Germany is subject to increasing opportunity costs and the United States to constant opportunity costs
B)   The United States is subject to increasing opportunity costs and Germany to constant opportunity costs
C)   Both Germany and the United States are subject to constant opportunity costs
D)   Both Germany and the United States are subject to increasing opportunity costsE) A) and B)
F) None of the above

Question 17

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. Which of the following statements about the two nations is correct based on the principle of comparative advantage?

Accepted Answer

A)   Xat should specialize in the production of corn
B)   Wat should specialize in the production of rice
C)   Xat has a comparative advantage in the production of rice
D)   Xat has a comparative advantage in the production of cornE) A) and D)
F) C) and D)

Question 18

The terms of trade will favor a larger nation over a smaller nation.

Accepted Answer

A) True 
 B)False

Question 19

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd)  and Column 3 is the quantity supplied domestically (Qsd) . dd)  and Column 3 is the quantity supplied domestically (Qsd) .   Refer to the table above. At what price will Country X import 100 units of the product? A)  $4.00 B)  $3.00 C)  $2.00 D)  $1.00" class="answers-bank-image d-inline" rel="preload" > Refer to the table above. At what price will Country X import 100 units of the product?

Accepted Answer

A)   $4.00
B)   $3.00
C)   $2.00
D)   $1.00E) B) and D)
F) A) and B)

Question 20

Benefits from international trade are based on the following differences, except:

Accepted Answer

A)   In resource endowments
B)   In technological capabilities
C)   In product quality and other attributes
D)   In income levelsE) A) and C)
F) A) and B)

Exam 20: International Trade

The use of tariffs and quotas for trade protection results in:

Correct Answer
verified

Benefits from international trade are based on the following differences, except:

Correct Answer
verified

Import tariffs benefit the consumers of the product involved.

Correct Answer
verified

Correct Answer
verified

If a nation exports a product, then the price of that product in the nation:

Correct Answer
verified

Specialization and trade based on comparative advantage allow nations to attain the following results, except:

Correct Answer
verified

Adam Smith recognized the benefits from trade based on , and David Ricardo recognized the benefits from trade based on :

Correct Answer
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Correct Answer
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Which nation had the largest share of world exports in 2011?

Correct Answer
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Common arguments often raised to present the case for protectionism include the following, except:

Correct Answer
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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
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Correct Answer
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The slopes of the production possibilities curves for two nations reflect the:

Correct Answer
verified

An import-licensing requirement, or import restrictions pertaining to the product quality and safety, are examples of:

Correct Answer
verified

Autos and chemicals are in million of units in the following production possibilities tables: The data in the tables above suggest that production in:

Correct Answer
verified

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Correct Answer
verified

In 2012, U.S. exports of services __ U.S. imports of services by about _.

Correct Answer
verified

In the United States, exports of goods and services accounted for about what percentage of GDP (total output) in 2011?

Correct Answer
verified

A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

Correct Answer
verified

The terms of trade will favor a larger nation over a smaller nation.

Correct Answer
verified

Exam 20: International Trade

The use of tariffs and quotas for trade protection results in:

Correct AnswerverifiedShow Answer

Benefits from international trade are based on the following differences, except:

Correct AnswerverifiedShow Answer

Import tariffs benefit the consumers of the product involved.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a nation exports a product, then the price of that product in the nation:

Correct AnswerverifiedShow Answer

Specialization and trade based on comparative advantage allow nations to attain the following results, except:

Correct AnswerverifiedShow Answer

Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which nation had the largest share of world exports in 2011?

Correct AnswerverifiedShow Answer

Common arguments often raised to present the case for protectionism include the following, except:

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

Correct AnswerverifiedShow Answer

The slopes of the production possibilities curves for two nations reflect the:

Correct AnswerverifiedShow Answer

An import-licensing requirement, or import restrictions pertaining to the product quality and safety, are examples of:

Correct AnswerverifiedShow Answer

Autos and chemicals are in million of units in the following production possibilities tables: The data in the tables above suggest that production in:

Correct AnswerverifiedShow Answer

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Correct AnswerverifiedShow Answer

In 2012, U.S. exports of services ______ U.S. imports of services by about _____.

Correct AnswerverifiedShow Answer

In the United States, exports of goods and services accounted for about what percentage of GDP (total output) in 2011?

Correct AnswerverifiedShow Answer

A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

Correct AnswerverifiedShow Answer

The terms of trade will favor a larger nation over a smaller nation.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Adam Smith recognized the benefits from trade based on , and David Ricardo recognized the benefits from trade based on :

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In 2012, U.S. exports of services __ U.S. imports of services by about _.

Correct Answer
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Correct Answer
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Correct Answer
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