Question 1

A country exports a good if

Accepted Answer

If the world price of a good is above the country's no-trade equilibrium price, then the country can produce and sell the good at a higher price on the global market. This creates a comparative advantage for the country in producing the good, leading to exports.

Question 2

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded Quantity supplied } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { (units per day) }
\end{array} \
\hline 2 & 20 & 14 \
4 & 19 & 16 \
6 & 18 & 18 \
8 & 17 & 20 \
10 & 16 & 22 \
12 & 15 & 24
\end{array}$$
-The table above has the domestic demand and domestic supply schedules for a good.If the world price of the good is $10, then according to the table

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 3

A nation will export a good if its

Accepted Answer

A nation will export a good if its no-trade, domestic price is less than the world price, because it can sell the good for more on the international market than it costs to produce domestically.

Question 4

With no international trade, the U.S.price of wheat is lower than the world price of wheat.This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade, the United States will ________ wheat.

Accepted Answer

The fact that the U.S. price of wheat is lower than the world price of wheat indicates that the United States has a comparative advantage in the production of wheat. This means that the United States can produce wheat at a lower opportunity cost than other countries. Therefore, the United States can export wheat and benefit from international trade.

Question 5

A country will export a good if it

Accepted Answer

A country will export a good if it can sell the good to a foreigner at a higher price than the no-trade price. This means that the country has a comparative advantage in producing that good and can earn higher profits by selling it to other countries.

Question 6

If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?

Accepted Answer

When a nation imports a good, it typically does so because the imported good is cheaper than the domestically produced version. This decrease in market price leads to an increase in the quantity consumed.

Question 7

Airlines in other countries buy airplanes from Boeing because

Accepted Answer

Boeing's prices are often less than what other countries would pay to build planes domestically, making it a more cost-effective option for airlines. It is not illegal or required by trade treaties for other countries to buy planes from Boeing, and the last option is not a factor in purchasing decisions.

Question 8

-The above figure shows the U.S.market for flip-flops. When there is no international trade, the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

Accepted Answer

Without seeing the figure, the correct answer cannot be determined. However, the question seems to imply a scenario that would typically be illustrated in a supply and demand graph. The correct choice would depend on where the supply and demand curves intersect in the absence of international trade, which determines the equilibrium price and quantity.

Question 9

-The above figure shows the U.S.market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________.

Accepted Answer

Without international trade, the domestic price is determined by the intersection of domestic supply and demand, which is typically higher than the world price. With international trade, the domestic price aligns with the world price, which is usually lower due to increased supply from imports. Thus, the price decreases from $14 to $12 with trade.

Question 10

A country with a comparative advantage in the production of a good will ________ production of the good and ________.

Accepted Answer

A country with a comparative advantage in the production of a good will specialize in producing that good, leading to an increase in production. Since the country is more efficient in producing that good, it can also sell it at a lower price compared to other countries. Therefore, the country will export the good to other countries where it is in demand.

Question 11

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

Accepted Answer

With international trade, U.S. consumers have access to more flip-flops due to imports, increasing the total consumed to 700,000. U.S. producers, facing competition from cheaper imports, reduce their production to 300,000.

Question 12

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence, once trade occurs Suevania's consumers will buy ________ machinery and pay ________ before.

Accepted Answer

When a country opens its doors to trade with another country that has a comparative advantage in the production of a good, in this case, machinery, consumers in the importing country will typically be able to buy more of that good at a lower price than before. This is because the exporting country's comparative advantage allows it to produce the good more efficiently, thus at a lower cost, which can be passed on to consumers in the form of lower prices.

Question 13

-The above figure shows the U.S.market for flip-flops. With international trade, the United States imports ________ flip-flops.

Accepted Answer

Without a visual representation of the market conditions, such as supply and demand curves, equilibrium points, or prices with and without trade, it's impossible to accurately determine the quantity of flip-flops imported. However, the correct answer is chosen based on the hypothetical scenario provided in the question.

Question 14

As a result of importing a good, domestic producers ________ the quantity produced and the price of the good ________.

Accepted Answer

When a country imports a good, domestic producers typically decrease the quantity produced because they face competition from the imported goods. This competition also tends to lower the price of the good in the domestic market.

Question 15

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________.

Accepted Answer

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases decrease because consumers are facing higher prices, and domestic production increases to meet the higher demand from the international market.

Question 16

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded Quantity supplied } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { (units per day) }
\end{array} \
\hline 2 & 20 & 14 \
4 & 19 & 16 \
6 & 18 & 18 \
8 & 17 & 20 \
10 & 16 & 22 \
12 & 15 & 24
\end{array}$$
-The table above has the domestic demand and domestic supply schedules for a good.According to the table, the no-trade price of the good is

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 17

As a result of importing a good, domestic consumers ________ the quantity consumed and the price of the good ________.

Accepted Answer

When a country imports a good, domestic consumers typically have access to the good at a lower price due to the increased supply from abroad, which leads to an increase in the quantity consumed and a decrease in the price of the good.

Question 18

According to the above table, the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.

Accepted Answer

The country will import the good if the world price is less than the domestic price at which it can produce the good itself, indicating it's cheaper to buy from the world market. Conversely, it will export the good if the world price is more than its domestic production cost, as it can sell the good for a higher price on the world market. The correct domestic price point for both importing and exporting in this scenario is $6, as it represents the threshold at which the country shifts between finding it more economical to either import or export the good.

Question 19

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade, cherry farmers would receive ________ per pound of cherries.

Accepted Answer

The answer of 
-The figure above shows the U.S.demand and...

Question 20

-The above figure shows the U.S.market for flip-flops. With international trade, the equilibrium price in the United States is ________ and the United States ________ flip-flops.

Accepted Answer

The equilibrium price with international trade is $12, and at this price, the U.S. imports flip-flops because the domestic price is higher without trade, indicating that the U.S. is importing to meet demand at the lower international price.

Quiz 18: International Trade Policy

A country exports a good if

A nation will export a good if its

With no international trade, the U.S.price of wheat is lower than the world price of wheat.This indicates that the United States a comparative advantage in the production of wheat and with international trade, the United States will wheat.

A country will export a good if it

If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?

Airlines in other countries buy airplanes from Boeing because

-The above figure shows the U.S.market for flip-flops. When there is no international trade, the U.S.price is per flip-flop and the U.S.quantity is flip-flops.

-The above figure shows the U.S.market for flip-flops. With no international trade, the price in the United States for flip-flops is . With international trade, the price in the United States for flip-flops is .

A country with a comparative advantage in the production of a good will production of the good and .

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy flip-flops and U.S.producers produce flip-flops.

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence, once trade occurs Suevania's consumers will buy machinery and pay before.

-The above figure shows the U.S.market for flip-flops. With international trade, the United States imports ________ flip-flops.

As a result of importing a good, domestic producers the quantity produced and the price of the good .

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good and domestic production of the good .

As a result of importing a good, domestic consumers the quantity consumed and the price of the good .

According to the above table, the country will import the good if the world price is less than and will export the good if the world price is more than .

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade, cherry farmers would receive ________ per pound of cherries.

-The above figure shows the U.S.market for flip-flops. With international trade, the equilibrium price in the United States is and the United States flip-flops.