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Exam 20: International Trade

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Question 131

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Refer to the diagram, which pertains to two nations and a specific product. Lines FC and GD are

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) A) and B)
F) None of the above

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Question 132

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What are the net costs of tariffs and quotas?

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Studies show that the costs of tariffs a...

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Question 133

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Tariffs create larger gains to domestic producers than losses to domestic consumers.

(Last Word) One main point of Frederic Bastiat's satire is that

$\begin{array}{l}\text { Domestic Market For Steel, Alpha }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 60 & \$ 5 & 10 \\\hline 40 & 4 & 20 \\\hline 30 & 3 & 30 \\\hline 20 & 2 & 40 \\\hline 10 & 1 & 50 \\\hline\end{array}\end{array}$ $\begin{array}{l}\text { Domestic Market For Steel, Beta }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 80 & \$ 5 & 20 \\\hline 70 & 4 & 30 \\\hline 60 & 3 & 40 \\\hline 50 & 2 & 50 \\\hline 40 & 1 & 60 \\\hline\end{array}\end{array}$ The accompanying tables show data for the hypothetical nations of Alpha and Beta. $Q_{S}$ is domestic quantity supplied, and $Q_{d}$ is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price must be lower than $\$ 4$ because, at $\$ 4$ ,

Which of the following countries had the smallest share of exports as a percentage of GDP in 2018?

What is the Trade Adjustment Assistance Act?

$\begin{array} { | l | c | c | } \hline & \text { Machines } & \text { Wine } \\\hline \text { France } & 3 & 1 \\\hline \text { Germany } & 1 & 1 \\\hline\end{array}$ The accompanying table shows the output (either machines or wine) that each unit of input in France and Germany can produce. We see that

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

NAFTA established a free-trade area and eliminated trade barriers between

The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size. ${ \text { Alpha's production possibilities } }$ $\begin{array}{l}\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 80 & 60 & 40 & 20 & 0 \\\hline \text { Chips (Tons) } & 0 & 5 & 10 & 15 & 20 \\\hline\end{array}\\\\\\{ \text { Beta's production possibilities } } \\\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 240 & 180 & 120 & 60 & 0 \\\hline \text { Chips (Tons) } & 0 & 10 & 20 & 30 & 40 \\\hline\end{array}\end{array}$ Assume the production possibilities in Beta double at alternatives A through E, while remaining as Shown in the table for Alpha. As a result, Beta should

A natural-resource abundant nation would be expected to export a land-intensive commodity such as

In terms of trade volume in the past many years, China has been the largest trading partner of the United States.

The increased-domestic-employment argument for tariff protection holds that

$\begin{array}{l}\text { Domestic Market For Steel, Alpha }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 60 & \$ 5 & 10 \\\hline 40 & 4 & 20 \\\hline 30 & 3 & 30 \\\hline 20 & 2 & 40 \\\hline 10 & 1 & 50 \\\hline\end{array}\end{array}$ $\begin{array}{l}\text { Domestic Market For Steel, Beta }\\\begin{array}{|c|c|c|}\hline Q_{S} & P & Q_{d} \\\hline 80 & \$ 5 & 20 \\\hline 70 & 4 & 30 \\\hline 60 & 3 & 40 \\\hline 50 & 2 & 50 \\\hline 40 & 1 & 60 \\\hline\end{array}\end{array}$ The accompanying tables show data for the hypothetical nations of Alpha and Beta. $Q_{S}$ is domestic quantity supplied, and $Q_{d}$ is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price must be lower than $\$ 4$ because, at $\$ 4$ ,

Research studies indicate that

$\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~\text { Germany Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 4 & 8 & 12 & 16 & 20 \\\hline \text { Chemicals } & 40 & 32 & 24 & 16 & 8 & 0 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~\text { U.S. Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 3 & 6 & 9 & 12 & 15 \\\hline \text { Chemicals } & 60 & 48 & 36 & 24 & 12 & 0 \\\hline\end{array}\end{array}$ Refer to the accompanying production possibilities tables. Data are in millions of units. Suppose that each nation specialized in producing the product for which it has a comparative advantage and the Terms of trade were set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain And consume a maximum combination of 8 million units of autos and

Which of the following best describes economists' general assessment of the impacts of offshoring?

"Offshoring" of certain production activities refers to