Question 1

Use the following scenario to answer the next 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.
-Natasha's opportunity cost of producing one pound of cheese is_____ house(s) .

Accepted Answer

A)   1/250 of a
B)   1/20 of a
C)   20
D)   250
E)   500F) B) and E)
G) A) and B)

Question 2

Limits on the quantity or total value of specific products imported to a nation are

Accepted Answer

A)   import quotas.
B)   protective tariffs.
C)   nontariff barriers.
D)   export subsidies.
E)   export quotas.F) A) and D)
G) C) and E)

Question 3

Countries engaged in international trade to specialize in production based on

Accepted Answer

A)   relative levels of GDP.
B)   comparative advantage.
C)   relative exchange rates.
D)   relative inflation rates.
E)   relative unemployement rates.F) A) and E)
G) A) and D)

Question 4

Use the following scenario to answer the next 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

Accepted Answer

A)   an absolute advantage in producing baseballs, but not golf balls.
B)   an absolute advantage in producing golf balls, but not baseballs.
C)   an absolute advantage in producing both goods.
D)   an absolute advantage in producing neither good.
E)   no comparative advantage.F) A) and B)
G) C) and D)

Question 5

Use the following scenario to answer the next 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 Smith to produce one smartphone is ______computer(s) .

Accepted Answer

A)   one-quarter of a
B)   one-half of a
C)   one
D)   two
E)   fourF) B) and E)
G) A) and B)

Question 6

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

Accepted Answer

A)   may or may not have an absolute advantage in the good's production.
B)   must not have an absolute advantage in the production of the other good.
C)   must not have an absolute advantage in the good's production.
D)   must have an absolute advantage in the good's production.
E)   must not have a specific advantage in the good's production.F) C) and D)
G) A) and B)

Question 7

The trade-restriction view assumes that free trade is_____ and should be______ .

Accepted Answer

A)   helpful for an economy; encouraged
B)   helpful to the producers only; controlled
C)   helpful to the poor only; controlled
D)   harmful to domestic workers and producers; restricted
E)   harmful to domestic consumers; restrictedF) B) and E)
G) None of the above

Question 8

Use the following scenario to answer the next 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 truck is_____ cars.

Accepted Answer

A)   four
B)   one and a half
C)   two
D)   three 
E)   eightF) All of the above
G) B) and E)

Question 9

What exactly is the advantage of the principle of comparative advantage?

Accepted Answer

Gains in trade arise when nations are ab...

Question 10

Use the following scenario to answer the next 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, Jager's opportunity cost of one truck _____is car(s) .

Accepted Answer

A)   three-quarters of a
B)   one and a third
C)   three
D)   four
E)   sixF) All of the above
G) None of the above

Question 11

Use the following graph to answer the questions:
 
-If this is a trading( open)  economy, quantity demanded of cars in thousands)  will be

Accepted Answer

A)   20.
B)   40.
C)   60.
D)   80.
E)   100.F) B) and C)
G) B) and D)

Question 12

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

Accepted Answer

A)   closed economy.
B)   open economy.
C)   one-person economy.
D)   absolute advantage in both goods and services.
E)   free trade policy.F) B) and C)
G) A) and E)

Question 13

Use the following graph to answer the questions:
 
-In a trading (open)  economy, how many TVs(in thousands)  will this country import?

Accepted Answer

A)   30
B)   60
C)   90
D)   120
E)   150F) A) and D)
G) A) and E)

Question 14

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

Accepted Answer

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.F) C) and E)
G) A) and E)

Question 15

An import quota

Accepted Answer

A)   limits the amount of a good that can be imported, thus increasing prices.
B)   is the same as a ban on imports.
C)   increases the amount of a good imported, thus increasing prices.
D)   increases the amount of a good imported, thus decreasing prices.
E)   limits the amount of a good that can be imported, thus decreasing prices.F) A) and D)
G) D) and E)

Question 16

A quota

Accepted Answer

A)   imposes a tax on goods entering the country.
B)   limits the quantity of goods leaving the country.
C)   subsidizes the production of goods leaving the country.
D)   limits the quantity of goods entering the country.
E)   is a tax on imports.F) A) and C)
G) A) and B)

Question 17

Use the following scenario to answer the next 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

Accepted Answer

A)   an absolute advantage in producing cars, but not trucks.
B)   an absolute advantage in producing trucks, but not cars.
C)   an absolute advantage in producing both goods.
D)   an absolute advantage in producing neither good.
E)   no comparative advantage.F) All of the above
G) A) and B)

Question 18

Suppose a country was freely trading electronics with other countries and now it has decided to impose a tariff on imported electronics. Draw a graph to illustrate the change in consumer surplus, the change in producer surplus, the deadweight loss, and the government revenue.

Accepted Answer

When the tariff was imposed, the supply ...

Question 19

The United States feels that it has become too dependent on oil from Saudi Arabia, so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia. This is an example of an)

Accepted Answer

A)   nontariff trade barrier.
B)   import quota.
C)   tariff.
D)   export subsidy.
E)   import subsidy.F) C) and E)
G) A) and D)

Question 20

When a country decides to impose a tariff on a good they are already importing, we can expect the_____ to decrease and the price of the good to _____.

Accepted Answer

A)   supply; increase
B)   supply; decrease
C)   demand; decrease
D)   demand; increase
E)   supply and demand; decreaseF) A) and E)
G) A) and B)

Exam 19: International Trade

Use the following graph to answer the questions: -In a trading (open) economy, how many TVs(in thousands) will this country import?

Correct Answer
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What exactly is the advantage of the principle of comparative advantage?

Correct Answer
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Gains in trade arise when nations are ab...
View Answer

A quota

Correct Answer
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The United States feels that it has become too dependent on oil from Saudi Arabia, so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia. This is an example of an)

Correct Answer
verified

The trade-restriction view assumes that free trade is_ and should be__ .

Correct Answer
verified

When a country decides to impose a tariff on a good they are already importing, we can expect the_ to decrease and the price of the good to _.

Correct Answer
verified

Correct Answer
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Use the following scenario to answer the next 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 truck is_____ cars.

Correct Answer
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Countries engaged in international trade to specialize in production based on

Correct Answer
verified

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

Correct Answer
verified

Limits on the quantity or total value of specific products imported to a nation are

Correct Answer
verified

Use the following scenario to answer the next 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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

An import quota

Correct Answer
verified

Suppose a country was freely trading electronics with other countries and now it has decided to impose a tariff on imported electronics. Draw a graph to illustrate the change in consumer surplus, the change in producer surplus, the deadweight loss, and the government revenue.

Correct Answer
verified
When the tariff was imposed, the supply ...
View Answer

Use the following scenario to answer the next 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, Jager's opportunity cost of one truck _____is car(s) .

Correct Answer
verified

Use the following scenario to answer the next 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

Correct Answer
verified

Use the following graph to answer the questions: -If this is a trading( open) economy, quantity demanded of cars in thousands) will be

Correct Answer
verified

Use the following scenario to answer the next 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. -Natasha's opportunity cost of producing one pound of cheese is_____ house(s) .

Correct Answer
verified

Exam 19: International Trade

Use the following graph to answer the questions: -In a trading (open) economy, how many TVs(in thousands) will this country import?

Correct AnswerverifiedShow Answer

What exactly is the advantage of the principle of comparative advantage?

Correct AnswerverifiedGains in trade arise when nations are ab...View AnswerShow Answer

A quota

Correct AnswerverifiedShow Answer

The United States feels that it has become too dependent on oil from Saudi Arabia, so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia. This is an example of an)

Correct AnswerverifiedShow Answer

The trade-restriction view assumes that free trade is_____ and should be______ .

Correct AnswerverifiedShow Answer

When a country decides to impose a tariff on a good they are already importing, we can expect the_____ to decrease and the price of the good to _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Use the following scenario to answer the next 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 truck is_____ cars.

Correct AnswerverifiedShow Answer

Countries engaged in international trade to specialize in production based on

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Limits on the quantity or total value of specific products imported to a nation are

Correct AnswerverifiedShow Answer

Use the following scenario to answer the next 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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An import quota

Correct AnswerverifiedShow Answer

Suppose a country was freely trading electronics with other countries and now it has decided to impose a tariff on imported electronics. Draw a graph to illustrate the change in consumer surplus, the change in producer surplus, the deadweight loss, and the government revenue.

Correct AnswerverifiedWhen the tariff was imposed, the supply ...View AnswerShow Answer

Use the following scenario to answer the next 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, Jager's opportunity cost of one truck _____is car(s) .

Correct AnswerverifiedShow Answer

Use the following scenario to answer the next 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

Correct AnswerverifiedShow Answer

Use the following graph to answer the questions: -If this is a trading( open) economy, quantity demanded of cars in thousands) will be

Correct AnswerverifiedShow Answer

Use the following scenario to answer the next 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. -Natasha's opportunity cost of producing one pound of cheese is_____ house(s) .

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Gains in trade arise when nations are ab...
View Answer

Correct Answer
verified

Correct Answer
verified

The trade-restriction view assumes that free trade is_ and should be__ .

Correct Answer
verified

When a country decides to impose a tariff on a good they are already importing, we can expect the_ to decrease and the price of the good to _.

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
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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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When the tariff was imposed, the supply ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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