Question 1

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be: A) v and vz. B) w and wy. C) w and wz. D) vx and xz." class="answers-bank-image d-inline" rel="preload" > Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

Accepted Answer

A)  v and vz.
B)  w and wy.
C)  w and wz.
D)  vx and xz.E) A) and D)
F) A) and C)

Question 2

Export supply curves are _____________ import demand curves are __________.

Accepted Answer

A)  horizontal; vertical
B)  vertical; horizontal
C)  downsloping; upward sloping
D)  upward sloping; downslopingE) B) and D)
F) C) and D)

Question 3

Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data contained in the production possibilities curves are based on the assumption of:

Accepted Answer

A)  imperfect substitutability of resources as between beer and pizza production.
B)  constant costs.
C)  decreasing costs.
D)  increasing costs.E) B) and C)
F) A) and C)

Question 4

The Uruguay Round of GATT negotiations:

Accepted Answer

A)  reduced the nontariff barriers in services and increased them on manufactured goods.
B)  ended the use of patents, copyrights, and trademarks on an international basis.
C)  reduced or on thousands of products and, reduced the overall tariffs by 33 percent.
D)  restricted foreign investment in other countries to a specified percentage of a nation's domestic output.E) All of the above
F) C) and D)

Question 5

Which of the following is the best description of a quota?

Accepted Answer

A)  an excise tax that is designed to place foreign producers at a competitive disadvantage in selling in domestic markets
B)  a specification of the maximum amount of a product that may be imported in any period of time
C)  regulations and licensing related to the quality or safety of imported products
D)  agreements adopted by exporting nations to limit exports to another countryE) C) and D)
F) A) and B)

Question 6

Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will: d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will:   A) lower domestic price and increase domestic consumption. B) increase the revenues of domestic producers by areas E + F + K. C) increase the revenues of domestic producers by areas G + H. D) increase the revenues of domestic producers by areas E + F + G + H + J." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  lower domestic price and increase domestic consumption.
B)  increase the revenues of domestic producers by areas E + F + K.
C)  increase the revenues of domestic producers by areas G + H.
D)  increase the revenues of domestic producers by areas E + F + G + H + J.E) A) and C)
F) All of the above

Question 7

The following information is about the cost ratios for two products-fish (F)  and chicken (C) -in Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world.If in Singsong: 1F = 2C and, in Harmony: 1F = 4C then, in Singsong the domestic real cost of each chicken:

Accepted Answer

A)  is 1/2 a fish.
B)  is 2 fish.
C)  increases with the level of fish caught.
D)  decreases with the level of fish caught.E) B) and C)
F) A) and D)

Question 8

Which products were the leading imports of Canada in 2014

Accepted Answer

A)  energy products
B)  machinery and equipment
C)  agricultural and fishing products
D)  petroleumE) B) and C)
F) A) and D)

Question 9

A protective tariff will:

Accepted Answer

A)  increase the price and sales of domestic producers.
B)  reduce the welfare of domestic consumers.
C)  result in a transfer of income from domestic consumers to government.
D)  do all of the above.E) B) and C)
F) A) and D)

Question 10

The law of increasing opportunity costs:

Accepted Answer

A)  applies to land-intensive commodities, but not to labour-intensive or capital-intensive commodities.
B)  results in straight-line production possibilities curves rather than curves which are bowed outward as viewed from the origin.
C)  refutes the principle of comparative advantage.
D)  may limit the extent to which a nation specializes in producing a particular product.E) A) and C)
F) A) and D)

Question 11

About how many nations belong to the World Trade Organization?

Accepted Answer

A)  155
B)  70
C)  149
D)  135E) None of the above
F) B) and D)

Question 12

The fact that international specialization and trade based on comparative advantage can increase world output is reflected in the fact that:

Accepted Answer

A)  the production possibilities curve of any two nations are identical.
B)  a nation's production possibilities and trading possibilities lines coincide.
C)  a nation's trading possibilities line lies to the right of its production possibility
D)  a nation's production possibilities line lies to the right of its trading possibilities.E) A) and C)
F) All of the above

Question 13

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1.  Refer to the above data.The total amount of revenue collected from a $1 per unit tariff on this product will be:

Accepted Answer

A)  $22
B)  $8
C)  $7
D)  $14E) A) and B)
F) All of the above

Question 14

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all of its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Accepted Answer

A)  the terms of trade will be 3X equals 1Y.
B)  Alpha should specialize in Y and Beta in X.
C)  Alpha should specialize in X and Beta in Y.
D)  there is no basis for mutually beneficial specialization and trade.E) C) and D)
F) B) and D)

Question 15

The following information is about the cost ratios for two products-fish (F)  and chicken (C) -in Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world.If in Singsong: 1F = 2C and, in Harmony: 1F = 4C, which one of the following would not be feasible terms for trade between Singsong and Harmony?

Accepted Answer

A)  1 fish for 2 1/2 chicken
B)  1 fish for 3 chicken
C)  1 chicken for 1/5 of a fish
D)  1 chicken for 1/3 of a fishE) C) and D)
F) B) and D)

Question 16

Refer to the diagrams below.Which of the following is a feasible rate at which X and Y might be exchanged?

Accepted Answer

A)  1X for 3Y
B)  1X for 1.5Y
C)  1X for 2.5Y
D)  1X for.5YE) A) and B)
F) None of the above

Question 17

Refer to the data below.Assume that before specialization and trade Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be: Production possibilities data for Gamma and Sigma.All data are in tons.Gamma production possibilities:  Sigma production possibilities:

Accepted Answer

A)  40 tons of pots.
B)  20 tons of tea and 20 tons of pots.
C)  20 tons of tea.
D)  40 tons of tea.E) A) and B)
F) All of the above

Question 18

The cheap foreign labour argument suggests that:

Accepted Answer

A)  to maintain its standard of living, Canada should not trade with low-wage countries.
B)  Canadian industries should develop policies to reduce their wage rates to compete with other countries.
C)  Canada should trade more with low-wage countries.
D)  Canada should use dumping policies to compete with low-wage countries.E) A) and B)
F) A) and C)

Question 19

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. s is domestic quantity supplied and Qd is domestic quantity demanded.   Refer to the above data.At a world price of $5: A) Alpha will want to import 50 units of steel. B) Beta will want to import 60 units of steel. C) Alpha will want to export 50 units of steel. D) neither country will want to export steel." class="answers-bank-image d-inline" rel="preload" > Refer to the above data.At a world price of $5:

Accepted Answer

A)  Alpha will want to import 50 units of steel.
B)  Beta will want to import 60 units of steel.
C)  Alpha will want to export 50 units of steel.
D)  neither country will want to export steel.E) None of the above
F) A) and B)

Question 20

The impact of increasing, as opposed to constant costs is to:

Accepted Answer

A)  intensify and prolong the comparative advantages which any nation may have initially.
B)  expand the limits of the terms of trade.
C)  cause the basis for further specialization to disappear as nations specialize in accordance with comparative advantage.
D)  cause nations to realize economies of scale in those products in which they specialize.E) A) and B)
F) A) and C)

Exam 17: Part B: International Trade

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

Correct Answer
verified

Correct Answer
verified

A protective tariff will:

Correct Answer
verified

Refer to the diagrams below.Which of the following is a feasible rate at which X and Y might be exchanged?

Correct Answer
verified

Correct Answer
verified

Which of the following is the best description of a quota?

Correct Answer
verified

The fact that international specialization and trade based on comparative advantage can increase world output is reflected in the fact that:

Correct Answer
verified

Correct Answer
verified

Which products were the leading imports of Canada in 2014

Correct Answer
verified

The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. Refer to the above data.At a world price of $5:

Correct Answer
verified

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.The total amount of revenue collected from a $1 per unit tariff on this product will be:

Correct Answer
verified

Refer to the diagram below, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct Answer
verified

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all of its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Correct Answer
verified

About how many nations belong to the World Trade Organization?

Correct Answer
verified

The law of increasing opportunity costs:

Correct Answer
verified

Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data contained in the production possibilities curves are based on the assumption of:

Correct Answer
verified

The impact of increasing, as opposed to constant costs is to:

Correct Answer
verified

The Uruguay Round of GATT negotiations:

Correct Answer
verified

Export supply curves are ___ import demand curves are .

Correct Answer
verified

The cheap foreign labour argument suggests that:

Correct Answer
verified

Exam 17: Part B: International Trade

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A protective tariff will:

Correct AnswerverifiedShow Answer

Refer to the diagrams below.Which of the following is a feasible rate at which X and Y might be exchanged?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the best description of a quota?

Correct AnswerverifiedShow Answer

The fact that international specialization and trade based on comparative advantage can increase world output is reflected in the fact that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which products were the leading imports of Canada in 2014

Correct AnswerverifiedShow Answer

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. Refer to the above data.At a world price of $5:

Correct AnswerverifiedShow Answer

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.The total amount of revenue collected from a $1 per unit tariff on this product will be:

Correct AnswerverifiedShow Answer

Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct AnswerverifiedShow Answer

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all of its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Correct AnswerverifiedShow Answer

About how many nations belong to the World Trade Organization?

Correct AnswerverifiedShow Answer

The law of increasing opportunity costs:

Correct AnswerverifiedShow Answer

Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data contained in the production possibilities curves are based on the assumption of:

Correct AnswerverifiedShow Answer

The impact of increasing, as opposed to constant costs is to:

Correct AnswerverifiedShow Answer

The Uruguay Round of GATT negotiations:

Correct AnswerverifiedShow Answer

Export supply curves are _____________ import demand curves are __________.

Correct AnswerverifiedShow Answer

The cheap foreign labour argument suggests that:

Correct AnswerverifiedShow Answer

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. Refer to the above data.At a world price of $5:

Correct Answer
verified

Correct Answer
verified

Refer to the diagram below, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Export supply curves are ___ import demand curves are .

Correct Answer
verified

Correct Answer
verified