1.An increase in the imports of clothing into the United States will benefit __________ and hurt

QUESTION

QUESTION 1An increase in the imports of clothing into the United States will benefit __________ and hurt __________.U.S. clothing producers; foreign clothing producersforeign clothing consumers; foreign clothing producersU.S. clothing consumers; foreign clothing producersU.S. clothing consumers; U.S. clothing producers1 points QUESTION 2The theory that predicts that trade occurs because of differences in the availability of factor inputs across countries and the differences in the proportions in which the factor inputs are used in producing different products is called:The Stolper-Samuelson theory.The Heckscher-Ohlin theory.Comparative advantage.Absolute advantage.1 points QUESTION 3The net national gain from trade can be measured by the change in consumer and producer surplus that results from trade. True False1 points QUESTION 4If a country exports the good that it can produce at a low opportunity cost and imports those goods that it would otherwise produce at a high opportunity cost, we say that such trade is based upon:Absolute advantage.Arbitrage.Labor productivity differences.Comparative advantage.1 points QUESTION 5Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. The United Kingdom has an absolute advantage in the production of __________ and the Rest of the World has an absolute advantage in the production of __________.Both goods; neither goodNeither good; both goodsUmbrellas; cornCorn; umbrellas1 points QUESTION 6Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. The opportunity cost of producing a unit of corn in the United Kingdom is __________ umbrellas and the opportunity cost of producing a unit of corn in the Rest of the World is __________ umbrellas.2/3; 33; 2/33/2; 1/31/3; 3/21 points QUESTION 7Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. The opportunity cost of producing an umbrella in the United Kingdom is __________ units of corn and the opportunity cost of producing an umbrella in the Rest of the World is __________ units of corn.2/3; 33; 2/33/2; 1/31/3; 3/21 points QUESTION 8Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. The United Kingdom has a comparative advantage in the production of __________ and the Rest of the World has a comparative advantage in the production of __________.Both goods; neither goodNeither good; both goodsUmbrellas; cornCorn; umbrellas1 points QUESTION 9Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. Once trade is opened, we can anticipate that the international price of umbrellas will lie between __________ and __________.2/3 of a unit of corn; 3 units of corn3/2 units of corn; 2/3 of a unit of corn3/2 of a unit of corn; 1/3 of a unit of corn3 units of corn; 1/3 of a unit of corn1 points QUESTION 10Productivity Umbrellas per labor hourUnits of corn per labor hourIn the United Kingdom64In the Rest of the World13Refer to Table. Once trade is open, we can anticipate that the international price of corn will lie between __________ and __________.2/3 of an umbrella; 3 umbrellas3/2 umbrellas; 2/3 of an umbrella3/2 umbrellas; 1/3 of an umbrella3 umbrellas; 3/2 umbrellas1 points QUESTION 11In the two-country-two-good model, if a country has a comparative advantage in the production of a certain good, that means that this country:Also has an absolute advantage in the production of this good.Will start importing this good.Can produce this good at a lower opportunity cost.Can produce this good at the same opportunity cost.1 points QUESTION 12A tariff allows domestic producers of import-competing goods to:Expand their own production and sales.Raise the price they charge.Begin to export their product.II and III, II, and IIII and III1 points QUESTION 13If a small country imposes a tariff on imported motorcycles, the world price of motorcycles will __________ and the domestic price of motorcycles willRise; riseFall; riseStay constant; riseStay constant; fall1 points QUESTION 14The U.S. Market for ShoesReferring to the figure above, the impact of a tariff on shoes on the amount of domestic producer surplus is a __________ measured by area __________. (Hint: see lecture for week 7).Gain; aLoss; aGain; (a+b)Loss; (a+b)1 points QUESTION 15Referring to the figure above, the impact of a tariff on shoes on the amount of domestic consumer surplus is a __________ measured by area __________. (Hint: see lecture for week 7).Gain; dLoss; dloss; (a+b+c+d)Loss; (b+d)1 points QUESTION 16Referring to the figure above, the revenue collected by the U.S. government as a result of the tariff on shoes is shown by area __________. (Hint: see lecture for week 7).aa + bcb + c + d1 points QUESTION 17Referring to the figure above, the imposition of a tariff on shoes caused economic welfare in the U.S. to __________ by an amount measured by area __________. (Hint: see lecture for week 7).Fall; cFall; (b+d)Fall; (b+c+d)Rise; (a+c)1 points QUESTION 18Referring to the figure above, what area measures the production effect of the tariff on shoes? (Hint: see lecture for week 7).abcd1 points QUESTION 19Referring to the figure above, what area measures the consumption effect of the tariff on shoes? (Hint: see lecture for week 7).abcd1 points QUESTION 20The theory of comparative advantage was first presented by:Adam Smith.Karl Marx.David Ricardo.Eli Heckscher.1 points QUESTION 21Trade occurs because of __________ in the availability of factor inputs across countries and the differences in the proportions of those factors that are used in producing different goods. Trade causes __________ in the export-oriented sector and __________ in the import-competing sector.differences; expansion; contractionsimilarities; expansion; contractionsimilarities; contraction; expansiondifferences; contraction; expansion1 points QUESTION 22Consider a typical two-country model. In the exporting country, consumers will be __________ and producers will be __________ with the opening of international trade.Happy; happyUnhappy; happyUnhappy; unhappyHappy; unhappy1 points QUESTION 23When Adam Smith presented his theory of absolute advantage, he thought that all value was measured in terms of the amount of __________ used in the production of the good.LandLaborCapitalMoney1 points QUESTION 24If Country X has a higher level of labor productivity than the rest of the world in the production of a good, then Country X has a comparative advantage in the production of the good. True False1 points QUESTION 25If Country X has a lower opportunity cost than the rest of the world in the production of a good, then Country X has a comparative advantage in the production of the good. True False

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