Number 3 manage

In 2018, the United States imported about $540 billion from China but ran a trade deficit of around _____ due to how little was exported.

420 Billion

Under free trade the rest of the world produces Only cars Only steel Both cars and steel Either a or b is possible given the information provided Cannot tell anything from the information provided

Either a or b is possible given the information provided

The gravity model states that bilateral trade between any pair of countries will be higher when either country is larger, as measured by a)Population b)Land mass c)Capital value d)Gross domestic product (GDP) e)None of the above

D) Gross Domestic Product (GDP)

Cars and steel are produced with labor. Under free trade with the rest of the world (ROW), China produces both cars and steel. China must have comparative advantage in Only cars Only steel Cars and steel Neither cars nor steel Either a or b is possible given the information provided

Either a or b is possible given the info provided

In 2018, the United States imported $3,129 billion, exported $2,501 billion, and ran a trade __________________ in goods & services.

deficit of 628 Billion

When opening up to free trade with the United States, all workers that were making machines in the United Kingdom switch to making cars. Under free trade with the United Kingdom, the United States produces a)Only machines b)Only cars c)Both cars and machines d)Neither cars nor machines e)Either a or c is possible given the information provided

e)Either a or c is possible given the information provided

10. In the United States, the wage paid making aircraft exceeds the wage paid growing oilseeds when have free trade with China. When opening up to free trade, the relative price of aircraft to oilseeds in China a)Rises so aircraft become more expensive in China due to international trade b)Remains the same as before international trade c)Falls so aircraft become cheaper in China due to international trade d)Either a or b are possible given the information provided e)Either b or c are possible given the information provided

e)Either b or c are possible given the information provided

When opening up to free trade with the United States, all workers that were making machines in the United Kingdom switch to making cars. Under free trade with the United Kingdom, the U.S. wage paid when producing machines is _________ the U.S. wage paid when producing cars. a)Less than b)Equal to c)More than d)Either a or b is possible given the information provided e)Either b or c is possible given the information provided

e)Either b or c is possible given the information provided

China (under free trade) the wage when making cars must ______ In the wage when making steel.

equal

Ricardian Model

explains how the level of a country's technology affects the wages paid to labor, such that countries with better technologies have higher wages

One country has a comparative advantage over another country in the production of a good if it

has a lower opportunity then the other country

The source of any gains from trade is that the

he free trade price differs from the opportunity cost for each country

Switching it up

next 4 ?S

China importing $200 billion more of certain goods and services by 2021 is a hefty target as they only imported about _____ of goods from the United States in 2017, _____ in 2018, and _____ in 2019.

$130 billion, $120 billion, $107 billion

Based on 2015 data, only 8% of world trade occurs in a)Agricultural products b)Fuels and mining products c)Commercial services d)Manufactures e)None of the above

A) Agricultural Products

The basic gravity model uses gross domestic product and distance to try to explain the value of Trade balance (exports minus imports) from county i to county j Bilateral trade (imports plus exports) between country pairs Exports from county i to county j Imports from county i to county j None of the above

Bilateral trade (imports plus exports) between country pairs

WORLD TRADE: Which country was the largest trading partner of the United States (U.S.) in 2015-2018 (based on the volume of trade in goods)?

CHINA

In 2018, the United States ran a trade deficit in goods of $19 billion (and likely a trade surplus in goods and services) with which country?

Canada

Who can produce steel with the least amount of labor? China because they are making steel under free trade The ROW because they must be better at making steel if China is making both goods under free trade. China because they must have the lower opportunity cost of cars Neither (or both) as China has the same technology as the ROW Cannot tell from the information provided

Cannot tell from the info

In the past two years. U.S. trade with China, Canada, and Mexico has been growing faster than trade with ________ and ________

Japan and Germany

If ignore distance and focus only on the countries' GDPs, the amount of bilateral trade predicted between countries is ____ compared to observed volumes of trade Much too low across all country pairs examined Much too low for countries like the United States and China that are not close to each other Fairly accurate across all country pairs examined Much too high for countries like the United States and China that are not close to each other Much too high across all country pairs examined

Much too high for countries like the United States and China that are not close to each other

When drawn with cheese on the horizontal axis, the absolute value of the slope of a country's PPF indicates the Opportunity cost of wine in terms of cheese Opportunity cost of cheese in terms of wine How many hours of labor are required to produce a gallon of wine How many hours of labor are required to produce a pound of cheese None of the above

Opportunity cost of cheese in terms of wine

When opening up to free trade with the United States, all workers that were making machines in the United Kingdom switch to making cars. The United States must have comparative advantage in a)Only machines b)Only cars c)Both cars and machines d)Neither cars nor machines e)Either a or b is possible given the information provided

a)Only machines

When opening up to free trade with the United States, all workers that were making machines in the United Kingdom switch to making cars. Under free trade with the United Kingdom, the United States exports a)Only machines b)Only cars c)Both cars and machines d)Neither cars nor machines e)Either a or b is possible given the information provided

a)Only machines

RICARDIAN MODEL: In the United States, the wage paid making aircraft exceeds the wage paid growing oilseeds when have free trade with China. When opening up to free trade, the relative price of aircraft to oilseeds in the United States a)Rises so aircraft become more expensive in the U.S. due to international trade b)Remains the same as before international trade c)Falls so aircraft become cheaper in the U.S. due to international trade d)Either a or b are possible given the information provided e)Either b or c are possible given the information provided

a)Rises so aircraft become more expensive in the U.S. due to international trade

In the United States, the wage paid making aircraft exceeds the wage paid growing oilseeds when have free trade with China. The United States must have a lower opportunity cost of _________ compared to China. a)Neither aircraft nor oilseeds b)Only aircraft c)Only oilseeds d)Both aircraft and oilseeds e)Cannot tell from the information provided

d)Both aircraft and oilseeds

In the United States, the wage paid making aircraft exceeds the wage paid growing oilseeds when have free trade with China. Does China gain from trade? a)No, China is definitely worse off with trade than without b)No, China is indifferent between trading and not trading c)Yes, China is definitely better off with trade than without d)Only if China produces only oilseeds e)Only if China produces only aircraft

d)Only if China produces only oilseeds