Question 1

Refer to the above diagram pertaining to two nations and a specific product.In equilibrium, the nation represented by lines FA and FC will:

Accepted Answer

A)  export H to the country represented by lines GB and GD.
B)  import H from the country represented by lines GB and GD.
C)  pay price F for its imports.
D)  receive price G for its exports.E) B) and D)
F) B) and C)

Question 2

Given the following production possibilities schedules, it can be seen that:

Accepted Answer

A)  Brazil has a comparative advantage in producing wine.
B)  Poland can produce more machines than Brazil.
C)  Brazil has a comparative advantage in producing machines.
D)  Poland can produce more of both goods than Brazil.E) C) and D)
F) B) and C)

Question 3

Import quotas produce the same amount of revenue for government as protective tariffs.

Accepted Answer

A) True 
 B)False

Question 4

The World Trade Organization advocates new protections for intellectual property such as copyrights.

Accepted Answer

A) True 
 B)False

Question 5

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be: A) PaPt times wy. B) PcPt times x. C) PcPt times wy. D) PcPt times z." 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 a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be:

Accepted Answer

A)  PaPt times wy.
B)  PcPt times x.
C)  PcPt times wy.
D)  PcPt times z.E) B) and D)
F) All of the above

Question 6

The following shows the Production possibilities tables for two countries, Latalia and Trombonia:  Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

Accepted Answer

A)  Trombonia will produce beans and Latalia will produce pork.
B)  Trombonia will produce both beans and pork.
C)  Latalia will produce both beans and pork and Trombonia will produce neither.
D)  Latalia will produce beans and Trombonia will produce pork.E) A) and C)
F) All of the above

Question 7

Dumping of goods abroad:

Accepted Answer

A)  constitutes a general case for permanent tariffs.
B)  may be part of a firm's price discrimination strategy.
C)  may be part of a nation's strategy to rectify its trade deficit.
D)  drives up prices of the dumped goods.E) B) and C)
F) A) and B)

Question 8

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities:  Trombonia's production possibilities:

Accepted Answer

A)  1 ton of beans for 1 ton of pork
B)  2 tons of beans for 1 ton of pork
C)  6 tons of beans for 1 ton of pork
D)  4 tons of beans for 1 ton of porkE) A) and B)
F) B) and C)

Question 9

Since World War II, several factors have contributed to the rapid growth of international trade.These factors are:

Accepted Answer

A)  transportation technology, general increase in tariffs, and differences among nations in terms of production cost.
B)  transportation and communications technologies, and the general decline in the level of tariffs.
C)  transportation technology, reductions in the number of participants, and the general increase in the level of tariffs.
D)  communication technology, general increase in the level of tariffs, and the transportation technology.E) All of the above
F) B) and C)

Question 10

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a per unit tariff in the amount PcPt, price and total quantity sold will be: A) Pt and x. B) Pc and z. C) Pt and y. D) Pa and x." 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 a per unit tariff in the amount PcPt, price and total quantity sold will be:

Accepted Answer

A)  Pt and x.
B)  Pc and z.
C)  Pt and y.
D)  Pa and x.E) None of the above
F) All of the above

Question 11

The 1993 General Agreement on Tariffs and Trade (GATT) :

Accepted Answer

A)  reduced tariffs and liberalized government rules restricting international trade in services.
B)  established the World Bank.
C)  expanded the European Union by four nations.
D)  established a free trade zone between Canada, the United States, and Mexico.E) A) and D)
F) B) and D)

Question 12

Refer to the above diagram pertaining to two nations and a specific product.Lines FA and GB are:

Accepted Answer

A)  domestic supply curves for two countries.
B)  domestic demand curves for two countries.
C)  import demand curves for two countries.
D)  export supply curves for two countries.E) All of the above
F) A) and B)

Question 13

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Accepted Answer

A)  Belgium
B)  Netherlands
C)  Germany
D)  CanadaE) B) and C)
F) A) and B)

Question 14

In a two-nation world, comparative advantage means that one nation can produce:

Accepted Answer

A)  a product with fewer inputs than the other nation.
B)  a product at lower average cost than the other nation.
C)  a product at a lower domestic opportunity cost than the other nation.
D)  more of a product than the other nation.E) All of the above
F) A) and D)

Question 15

Which of the following held the lowest percentage of Canadian imports industry is the smallest, using Table 17.1 for principal exp in 2016?

Accepted Answer

A)  Machinery and equipment
B)  Energy products
C)  Electronic and electrical equipment
D)  Forestry productsE) B) and D)
F) None of the above

Question 16

A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that:

Accepted Answer

A)  labour costs and product prices are not related.
B)  there is no discernible relationship between wage rates and labour productivity.
C)  wage rates and labour productivity are directly related.
D)  wage rates and labour productivity are inversely related.E) B) and C)
F) A) and C)

Question 17

The best example of a capital-intensive good is:

Accepted Answer

A)  chemicals.
B)  radios.
C)  wheat.
D)  wool.E) C) and D)
F) A) and B)

Question 18

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities  Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Accepted Answer

A)  is 3 tons of beans.
B)  diminishes with the level of pork production.
C)  is 5 tons of beans.
D)  is 1/5 of a ton of beans.E) A) and C)
F) B) and C)

Question 19

The interaction of world supply and world demand determines:

Accepted Answer

A)  world price.
B)  domestic price.
C)  both world price and domestic price.
D)  It has no effect.E) B) and C)
F) C) and D)

Question 20

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.The terms of trade will be at or within the 1X = 1 1/2 Y to 1X = 2/3 Y range.

Accepted Answer

A) True 
 B)False

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 a per unit tariff in the amount P_cP_t, price and total quantity sold will be:

Correct Answer
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Refer to the above diagram pertaining to two nations and a specific product.In equilibrium, the nation represented by lines FA and FC will:

Correct Answer
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Refer to the above diagram pertaining to two nations and a specific product.Lines FA and GB are:

Correct Answer
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Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Correct Answer
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A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that:

Correct Answer
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Since World War II, several factors have contributed to the rapid growth of international trade.These factors are:

Correct Answer
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The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Correct Answer
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In a two-nation world, comparative advantage means that one nation can produce:

Correct Answer
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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 a per unit tariff of P_cP_t, the total amount of tariff revenue collected on this product will be:

Correct Answer
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Which of the following held the lowest percentage of Canadian imports industry is the smallest, using Table 17.1 for principal exp in 2016?

Correct Answer
verified

The interaction of world supply and world demand determines:

Correct Answer
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The best example of a capital-intensive good is:

Correct Answer
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The following shows the Production possibilities tables for two countries, Latalia and Trombonia: Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

Correct Answer
verified

Given the following production possibilities schedules, it can be seen that:

Correct Answer
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Dumping of goods abroad:

Correct Answer
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Import quotas produce the same amount of revenue for government as protective tariffs.

Correct Answer
verified

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities:

Correct Answer
verified

The 1993 General Agreement on Tariffs and Trade (GATT) :

Correct Answer
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Correct Answer
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The World Trade Organization advocates new protections for intellectual property such as copyrights.

Correct Answer
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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 a per unit tariff in the amount PcPt, price and total quantity sold will be:

Correct AnswerverifiedShow Answer

Refer to the above diagram pertaining to two nations and a specific product.In equilibrium, the nation represented by lines FA and FC will:

Correct AnswerverifiedShow Answer

Refer to the above diagram pertaining to two nations and a specific product.Lines FA and GB are:

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Correct AnswerverifiedShow Answer

A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that:

Correct AnswerverifiedShow Answer

Since World War II, several factors have contributed to the rapid growth of international trade.These factors are:

Correct AnswerverifiedShow Answer

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Correct AnswerverifiedShow Answer

In a two-nation world, comparative advantage means that one nation can produce:

Correct AnswerverifiedShow Answer

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 a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be:

Correct AnswerverifiedShow Answer

Which of the following held the lowest percentage of Canadian imports industry is the smallest, using Table 17.1 for principal exp in 2016?

Correct AnswerverifiedShow Answer

The interaction of world supply and world demand determines:

Correct AnswerverifiedShow Answer

The best example of a capital-intensive good is:

Correct AnswerverifiedShow Answer

The following shows the Production possibilities tables for two countries, Latalia and Trombonia: Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

Correct AnswerverifiedShow Answer

Given the following production possibilities schedules, it can be seen that:

Correct AnswerverifiedShow Answer

Dumping of goods abroad:

Correct AnswerverifiedShow Answer

Import quotas produce the same amount of revenue for government as protective tariffs.

Correct AnswerverifiedShow Answer

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities:

Correct AnswerverifiedShow Answer

The 1993 General Agreement on Tariffs and Trade (GATT) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The World Trade Organization advocates new protections for intellectual property such as copyrights.

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 a per unit tariff in the amount P_cP_t, price and total quantity sold will be:

Correct Answer
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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 a per unit tariff of P_cP_t, the total amount of tariff revenue collected on this product will be:

Correct Answer
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