ECON 1115 chapter 17 homework

1. Price of French Computers sold in the US A. Increase 2. Quantity of French Computers sold in the US B. Decrease 3. Price of US Computers sold in the US A. Increase 4. Quantity of US Computers sold in the US A. Increase

Given the creation of a U.S. tariff on computers manufactured in France, what would we expect to happen? 1. Price of French Computers sold in the US 2. Quantity of French Computers sold in the US 3. Price of US Computers sold in the US 4. Quantity of US Computers sold in the US A. Increase B. Decrease C. Stay the same

A. both an outflow as well as an inflow of jobs in the U.S.

Globalization of resource markets has resulted in the business practice of offshoring, which involves A. both an outflow as well as an inflow term-20of jobs in the U.S. B. only an outflow of jobs away from the U.S. C. no possible expansion of jobs in the U.S. D. huge losses to consumers in the U.S.

A. any transaction across an international border.

"International trade" refers to A. any transaction across an international border. B. buying or selling of preexisting assets across an international border. C. purchasing or selling currently produced goods or services across an international border. D. any financial transaction across an international border.

C. liberalize international trade among nations.

A major goal of the WTO (World Trade Organization) is to A. increase the protection of producers against foreign trade competition. B. encourage bilateral trade agreements between nations. C. liberalize international trade among nations. D. maximize tariff revenue for governments.

C. rise in U.S. interest rates relative to world interest rates.

An inflow of investment funds into the United States from overseas is likely to result from a(n) A. decline in expectations for economic growth in the United States. B. growing belief among investors that the U.S. dollar ($) is overvalued. C. rise in U.S. interest rates relative to world interest rates. D. increase in the U.S. inflation rate.

C. Increase Supply will be lowered in the market for tomatoes produced abroad. We will end up in an equilibrium where the price has increased and the equilibrium quantity of tomatoes has decreased. A new supply curve that increases the price at each quantity supplied is drawn. The effect of the tax will be to lower the prices that producers actually receive (the market price minus the tariff) and raise the price that consumers pay (the market price).

Assume that tomatoes are currently imported from abroad at a market price of $ .50 per tomato. Assume that a tariff of $ .25 is placed on imported tomatoes. Also assume that the supply and demand for tomatoes are normal supply and demand relationships. What will be the effect of the tariff on the price of tomatoes in the U.S? Price of tomatoes in the US: A. Stay the Same B. Decrease

C. decrease in total supply and an increase in the price of the product.

If a nation imposes a tariff on an imported product, then the nation will experience a(n) A. decrease in supply of, and an increase in demand for, the product. B. decrease in demand and a decrease in the price of the product. C. decrease in total supply and an increase in the price of the product. D. increase in supply of, and a decrease in demand for, the product.

A. $1 The equilibrium price will be where the quantity supplied is equal to the quantity demanded.

If there is no trade between the U.S. and Japan, what is the equilibrium price in the computer market in Japan? A. $1 B. $2 C. $3 D. $4 E. $5

D. 50 The equilibrium quantity will be where the quantity supplied is equal to the quantity demanded.

If there is no trade between the U.S. and Japan, what is the equilibrium quantity in the computer market in Japan? A. 10 B. 30 C. 40 D. 50 E. 75

D. 50 The equilibrium quantity will be where the quantity supplied is equal to the quantity demanded.

If there is no trade between the U.S. and Japan, what is the equilibrium quantity in the computer market in the U.S.? A. 10 B. 20 C. 40 D. 50 E. 80

C. Canada in wheat and China in mugs. to produce 1 bushel of wheat Canada only has to give up 1 mug, china has to give up 1.5 mugs to produce 1 mug, Canada has to give up 1 bushel while china only has to give up 2/3 of a bushel

In Canada, one worker can produce either one bushel of wheat or one beer mug. In China, one worker can produce either two bushels of wheat or three beer mugs. Who has the comparative advantage in each good? A. China in both goods. B. China in wheat and Canada in mugs. C. Canada in wheat and China in mugs. D. Canada in both goods.

B. the product at a lower domestic opportunity cost than the other nation.

In a two-nation world, comparative advantage in the production of a particular product means that one nation can produce A. the product with fewer inputs than the other nation. B. the product at a lower domestic opportunity cost than the other nation. C. more of the product than the other nation. D. the product at lower average cost than the other nation.

D. China, Germany, and the United States.

In terms of absolute dollar volume, the top 3 leaders in world exports are, in order: A. Japan, China, and the European Union. B. the United States, England, and Canada. C. Germany, England, and the United States. D. China, Germany, and the United States.

D. nations normally experience increasing opportunity costs in producing more of the product in which they are specializing.

In the real world, specialization is rarely complete because A. production possibilities curves are straight lines rather than curves bowed outward as viewed from the origin. B. international law prohibits monopolies. C. one nation's imports are necessarily another nation's exports. D. nations normally experience increasing opportunity costs in producing more of the product in which they are specializing.

A. Rise A quota limits the number of Canadian softwood lumber sold in the U.S. Since supply of Canadian softwood lumber decreases, the price will rise. The supply curve shifts to the left (I think)

The creation of a quota on Canadian softwood lumber sold in the U.S. may affect prices and quantities of Canadian softwood lumber sold in the U.S. and the prices and quantities of U.S. softwood lumber sold in the U.S. Assuming that the quota is set at a level lower than the current level of imports, the resulting equilibrium price paid by consumers in the imported Canadian softwood lumber market will ______________. A. Rise B. Fall C. Not change D. May rise or fall

C. an increase in tariffs will increase net exports and stimulate domestic employment.

The increased-domestic-employment argument for tariff protection holds that A. an increase in tariffs will reduce net exports and stimulate domestic employment. B. domestic inflation is a desirable policy goal because it stimulates exports. C. an increase in tariffs will increase net exports and stimulate domestic employment. D. domestic deflation is a desirable policy goal because it stimulates imports.

E. all of the above.

The major reason(s) for the current US trade deficit with China is A. the high world demand for the dollar. B. the low value of the yuan. C. the current economic growth of the U.S. D. the per capital US GDP. E. all of the above.

Cloth: Poland Wine: Poland A country has an absolute advantage in the production of a good if that country can produce that good using fewer resources than another country. Poland has an absolute advantage in the production of both goods; it can produce more of both cloth and wine using a week's worth of labor.

The table below describes the number of yards of cloth and barrels of wine that can be produced with a week's worth of labor in England and Poland. Assume that no other inputs are needed. Match the following goods with the country that possesses an absolute advantage in its production. England. Poland Cloth (Yards). 5 6 Wine (Barrels). 0.5 3 Cloth: Wine:

E. $5 The equilibrium price will be where the quantity supplied is equal to the quantity demanded.

The table below presents the demand and supply curves for microcomputers in Japan and the U.S. If there is no trade between the U.S. and Japan, what is the equilibrium price in the computer market in the U.S.? A. $1 B. $2 C. $3 D. $4 E. $5

D. consumers of the product.

Trade protection in the form of tariffs and import quotas would benefit the following groups, except A. the government of the importing country. B. workers in domestic firms producing the product. C. domestic producers of the product. D. consumers of the product.

C. specialization in production

What other economic process needs to accompany international trade, for nations to benefit from such trade? A. nationalization of industries B. regulation of production and trade C. specialization in production D. spreading out of resources in more industries E. all of the above.

A. True

A side benefit of international trade is that it links national interests and increases the opportunity costs of war. A. True B. False

D. comparative advantage.

Countries engaged in international trade specialize in production based on A. relative inflation rates. B. relative levels of GDP. C. relative exchange rates. D. comparative advantage.

D. all of these.

Differences in production efficiencies among nations in producing a particular good result from A. different amounts of skilled labor. B. different endowments of fertile soil. C. different levels of technological knowledge. D. all of these.

1:Absolute Advantage — B. An individual can produce a good using fewer resources than another individual 2. Comparative Advantage — A. An individual can produce a good at a lower opportunity cost than another individual Absolute advantage is when an individual can produce a good using fewer resources than another individual, whereas an individual has a comparative advantage in the production of a good when he/she can produce that good at a lower opportunity cost than another individual.

Match the following concepts with their definitions. 1. Absolute Advantage 2. Comparative Advantage A. An individual can produce a good at a lower opportunity cost than another individual B. An individual can produce a good using fewer resources than another individual

England: C. 10 yards Poland: D. 2 yards The opportunity cost of producing a barrel of wine is given by the number of yards of cloth forgone. Since England can produce either 5 yards of cloth or half a barrel of wine in a week, the opportunity cost of producing a barrel of wine will be 5/0.5 (or 10) yards of cloth. Since Poland can produce either 6 yards of cloth or 3 barrels of wine in a week, the opportunity cost of producing a barrel of wine will be 6/3 (or 2) yards of cloth.

Match the following countries with their respective opportunity cost ratios (comparative advantage) of producing a barrel of wine in terms of yards of cloth. England. Poland Cloth (Yards). 5 6 Wine (Barrels). 0.5 3 England: Poland: A. 6 yards B. 5 yards C. 10 yards D. 2 yards

C. $3 With trade the equilibrium price will be $3. That is where the world's (Japan plus the U.S.) quantity supplied will be equal to the world's quantity demanded.

Now suppose trade is opened between the two countries. What will be the equilibrium price in the world market for computers? A. $1 B. $2 C. $3 D. $4 E. $5

B. higher total output

Specialization and trade based on comparative advantage between individuals or between nations leads to A. greater self-sufficiency B. higher total output C. higher product prices D. higher utilization of resources