chapter 7: international trade

a tariff or quota will ____ prices and ____ the consumption of protected goods in the importing country

raise; decrease

your artisan candle stick manufacturing business is doing well domestically, so you decide to expand it to other countries. as you would like to make internationals sales, you hope:

the dollar will depreciate against other currencies

if you and your group assign various tasks for a project in the most efficient way possible, then it is likely that:

you got a task in which you have CA

france must give up the production of 75 ties to produce 25 additional dress shirts. the opportunity cost of producing 4 dress shirts is:

12 ties

a trade cost is:

an extra cost incurred as a result of buying or selling a good abroad rather than domestically.

collectively, people in nations that engage in international trade are likely to:

consumer more than they could consumer in the absence of trade

your familys business, a manufacturer of a plastic containers, depends on imports of recycled plastic pellets from asia. your supplier offers a substantial volume discounts, so the larger is your order of plastic pellets, the lower are your production costs. your family benefits from:

economics of scale

germany can raise 100 tons fo wheat or producce 1,000 boxes of daises. france can raise 50 tons of wheat or produce 750 boxed of daises. when the two countries begin trading wheat for daises, consumer surplus from wheat consumption will

fall in germany

If a country's domestic price of a good is below than the world price, then with trade, the domestic quantity supplied of the good will be _____ the domestic quantity demanded

greater than

which statement describes a source of comparative advantage?

hawaii has a more favorable climate for the cultivation of tropical fruit than England has

suppose the us places a tariff on imported brazilian ipe. as a result of the tariff, the domestic price of lumber will _____, consumer surplus will_____, and producer surplus will______

rise; fall; rise

south koreas comparative advantage on cellular technology can be attributed to:

specialized skills

which of these is a source of comparative advantage?

specialized skills

the job creation argument for protection against free trade is:

that restricting imports allows for greater domestic production