Question 1

Figure 16-6
 
-According to Figure 16-6,all of the following statements are correct except

Accepted Answer

India does not have the comparative advantage in the production of bicycles.

Question 2

Figure 16-6
 
-According to Figure 16-6,which of the following statements is correct?

Accepted Answer

Chile has the absolute advantage in the production of bicycles because it can produce more bicycles with the same amount of resources than India. Chile also has the comparative advantage in the production of bicycles because it can produce bicycles at a lower opportunity cost than India.

Question 3

If Country A exports a good to Country B,the prices of the good in Country A will ______ and the prices of the good in Country B will ________.

Accepted Answer

When a country exports a good, the supply of that good in the exporting country increases, leading to a decrease in its price. Conversely, in the importing country, the supply of the good increases, leading to a decrease in its price.

Question 4

U.S.imports of sugar

Accepted Answer

U.S. imports of sugar are restricted by import quotas, which limit the amount of sugar that can be imported into the U.S. This is done to protect U.S. sugar producers and maintain domestic sugar prices.

Question 5

A high-wage country cannot afford free trade with a low-wage country.The high- wage country will either be undersold or its workers will be forced to accept lower living standards.

Accepted Answer

Free trade can benefit both high-wage and low-wage countries by allowing each to specialize in industries where they have a comparative advantage, potentially leading to increased efficiency and economic growth for both.

Question 6

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/3 of a pair of pants in an hour.If there are 500 workers in the factory,then the maximum number of shirts that can be made in an hour is

Accepted Answer

The answer of In an Israeli factory,each worker can produce...

Question 7

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/4 of a pair of pants in an hour.If there are 500 workers in the factory,then the maximum number of pairs of pants that can be made in an hour is

Accepted Answer

We are given that each worker can produce 2/5 of a shirt in an hour or 1/4 of a pair of pants in an hour.
Let's calculate the total production of shirts and pants per hour by 500 workers:
For shirts:
Total production in an hour by 500 workers = (2/5) × 500 = 200
For pants:
Total production in an hour by 500 workers = (1/4) × 500 = 125
Therefore, the maximum number of pairs of pants that can be made in an hour is 125.
Hence, the answer is B) 250.

Question 8

If Canada began to export maple syrup to Australia,which of the following will happen?

Accepted Answer

The answer of If Canada began to export maple syrup...

Question 9

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour.If there are 500 workers in the factory,what is opportunity cost of producing one shirt?

Accepted Answer

The answer of In an Israeli factory,each worker can produce...

Question 10

Protectionism is

Accepted Answer

Protectionism is the idea that a nation's industries should be protected from foreign competition, which can include measures such as tariffs, quotas, and subsidies. It is often motivated by a desire to protect domestic jobs and industries from being undercut by cheaper foreign imports.

Question 11

If Country A exports a good to Country B,who is made worse off?

Accepted Answer

In this scenario, Country A is the exporter and Country B is the importer. The producers in Country A benefit from increased demand for their goods and are therefore not worse off. However, the producers in Country B may face increased competition and lower prices, thus making them worse off. Consumers in Country B benefit from access to goods at a lower price, but consumers in Country A may face less demand for their goods and lower prices, making them worse off. Therefore, the answer is D as it correctly identifies that the consumers in Country A and the producers in Country B are made worse off.

Question 12

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour.If there are 500 workers in the factory,what is opportunity cost of producing one pair of pants?

Accepted Answer

The answer of In an Israeli factory,each worker can produce...

Question 13

A low-productivity country will tend to avoid free trade with a high-productivity country.The low-productivity country will be exploited and lose industries in which it has a comparative advantage.

Accepted Answer

A low-productivity country can benefit from free trade by focusing on industries where it has a comparative advantage, even if it is less productive overall. Free trade allows countries to specialize and trade, leading to mutual benefits.

Question 14

The United States imposes a quota on sugar imports

Accepted Answer

The answer of The United States imposes a quota on...

Question 15

Trade restrictions have been defended on the grounds that they

Accepted Answer

Trade restrictions, such as tariffs and quotas, can be implemented in order to protect domestic industries that are just starting out and may not be able to compete with established foreign competitors. This is known as protecting infant industries. By limiting foreign competition, these industries can grow and eventually become competitive on their own.

Question 16

Strategic trade policy

Accepted Answer

Strategic trade policy suggests that government intervention can help certain industries that have the potential to benefit society but may not succeed in a purely free trade environment due to factors like economies of scale or first-mover advantages.

Question 17

The United States does not impose tariffs or quotas;however,many of its trading partners do have these trade restrictions.

Accepted Answer

The United States does impose tariffs and quotas on certain imports, just as many of its trading partners do.

Question 18

If Country A exports a good to Country B,who is made better off?

Accepted Answer

When Country A exports a good to Country B, the producers in Country A benefit because they are able to sell their goods in a new market, increasing their profits. The consumers in Country B benefit because they now have access to a product that they may not have been able to get before or at a lower price, improving their standard of living. Therefore, both producers in Country A and consumers in Country B are made better off.

Question 19

If Egypt can produce 3 silver candlesticks or 120 small silver cups in an hour and Turkey can produce 4 silver candlesticks or 160 small silver cups in an hour then

Accepted Answer

The answer of If Egypt can produce 3 silver candlesticks...

Question 20

The infant industry argument

Accepted Answer

The infant industry argument is that governments should protect a new industry until it can "stand on its own feet." This means providing temporary protection to help the industry overcome its initial disadvantages and become competitive in the market.

Quiz 17: Comparative Advantage and the Gains From International Trade

Figure 16-6 -According to Figure 16-6,all of the following statements are correct except

Figure 16-6 -According to Figure 16-6,which of the following statements is correct?

If Country A exports a good to Country B,the prices of the good in Country A will and the prices of the good in Country B will __.

U.S.imports of sugar

A high-wage country cannot afford free trade with a low-wage country.The high- wage country will either be undersold or its workers will be forced to accept lower living standards.

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/3 of a pair of pants in an hour.If there are 500 workers in the factory,then the maximum number of shirts that can be made in an hour is

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/4 of a pair of pants in an hour.If there are 500 workers in the factory,then the maximum number of pairs of pants that can be made in an hour is

If Canada began to export maple syrup to Australia,which of the following will happen?

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour.If there are 500 workers in the factory,what is opportunity cost of producing one shirt?

Protectionism is

If Country A exports a good to Country B,who is made worse off?

In an Israeli factory,each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour.If there are 500 workers in the factory,what is opportunity cost of producing one pair of pants?

A low-productivity country will tend to avoid free trade with a high-productivity country.The low-productivity country will be exploited and lose industries in which it has a comparative advantage.

The United States imposes a quota on sugar imports

Trade restrictions have been defended on the grounds that they

Strategic trade policy

The United States does not impose tariffs or quotas;however,many of its trading partners do have these trade restrictions.

If Country A exports a good to Country B,who is made better off?

If Egypt can produce 3 silver candlesticks or 120 small silver cups in an hour and Turkey can produce 4 silver candlesticks or 160 small silver cups in an hour then

The infant industry argument