ECON 110 Read & Interact Schiller & Gephardt Chapter 16 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 16 solutions complete answers 

 

The World Trade Organization _______.

 

The main goals of the General Agreement on Tariffs and Trade are to:

 

Which institution is in charge of overseeing international trade agreements and ruling on disputes relating to them?

 

What was an effect of some of the trade policy changes under GATT?

 

The   (demand/supply) curve for dollars is upward sloping.

 

In the market for dollars, the market activities that do not influence the supply of dollars include:

 

In the market for dollars, which of the following would increase the demand for dollars?

 

The   (supply/demand) curve for dollars is downward sloping.

 

If there is an increase in Japanese attendance at amusement parks in California, we would expect to see an _________ U.S. dollars.

 

In the market for dollars, the market activities that influence the demand for dollars do not include:

 

The price of one country's currency expressed in terms of another country's currency is known as

 

The   rate is the price of one country's currency expressed in terms of another's.

 

Because the U.S. uses dollars and the European Union uses euros, trade between the U.S. and Europe requires:

 

A licensing requirement that specifies unreasonable standards pertaining to product quality and safety is a(n)

 

A tariff imposed on Chinese imports into the United States tends to

 

A tax on an imported good is known as a(n)

 

The idea that there is a net gain from trade is that trade _____. 

 

True or false: Workers and producers who compete with imported products—who work in import-competing industries—have an economic interest in restricting trade.

 

A country will not trade unless the terms of trade are _______ domestic opportunity costs.

 

Mutual gains from trade are one benefit of _____. 

 

The rate at which goods are exchanged between two countries is called the

 

Suppose two countries, A and B, both produce automobiles with the same amount of labor, raw materials, and other necessary inputs. However, country A simply cannot produce as many units of output as country B. Which of the following must be true?

 

The world economy can achieve a more efficient allocation of resources and a higher level of material well-being with

 

Which of the following statements summarize the case for trade based on the theory of comparative advantage?

 

Which of the following are benefits of specialization and trading on the basis of comparative advantage?

 

When two countries obtain more of both products after specializing and exchanging than they would have on their own, they are experiencing

 

Specialization and trade allow countries to

 

Specialization and trade allow countries to consume ______ they can consume if they were self-sufficient.

 

Specialization and trade allow countries to supplement their own domestic production possibilities and consume ______ if they were self-sufficient.

 

If the United States is producing 80 zillion loaves of bread per year and does not trade, how much wine could the United States consume?

 

A country's consumption possibilities are identical to its production possibilities, in the absence of _______.

 

If the United States is producing 60 zillion loaves of bread per year and does not trade, how much wine could the United States consume?

 

The alternative combinations of goods and service that an economy can consume are known as:

 

If France is producing 15 zillion loaves of bread per year and does not trade, how much wine could France consume?

 

A trade   (deficit/surplus) occurs when exports exceed imports.

 

Which of the following are examples of exported services for the United States?

 

Which of the following are examples of imported services for the United States?

 

Which of the following are examples of exported goods and services for the United States?

 

Which of the following are examples of imported goods for the United States?

 

      are goods and services purchased from foreign sources.

 

Which of the following are examples of imported services?

 

A(n) _____ is a good or service sold to foreign buyers.

 

Which of the following are examples of exported services?

 

Using the figure, identify which of the listed four countries has the lowest export ratio.

 

A(n) _____ is a good or service purchased from international sources.

 

Suppose a country imports $50 billion and exports $30 billion worth of goods and services. This country has

 

Which of the following are examples of imported goods?

 

      are goods and services sold to foreign buyers.

 

A trade deficit occurs when

 

Which of the following are examples of exported goods and services?

 

Using the figure, identify which of the listed four countries has the lowest export ratio.

 

If Vietnam imports $50 billion and exports $20 billion worth of goods and services, then Vietnam has a trade      .

 

A trade ______ occurs when imports exceed exports.

 

A trade surplus occurs when

 

In 2017, the U.S. had the largest trade deficit with _______.

 

Using the figure, identify which of the listed four countries has the highest export ratio.

 

What is a country's primary motivation to specialize in the production of particular goods and then trade for other desired goods?

 

Gains from trade include increased world output and a higher standard of living in all trading countries. Gains from trade is achieved through      .

 

A trade       occurs when exports exceed imports.

 

If Mexico focuses its agricultural production on vegetables and the United States focuses its agricultural production on grain, these countries are

 

In 2017, the U.S. had the largest trade surplus with _______.

 

The alternative combinations of final goods and services that could be produced with available resources represent a country's       possibilities.

 

If France was producing 15 zillion loaves of bread per year and does not trade, how much wine could the France consume?

 

If Brazil imports $10 billion and exports $20 billion worth of goods and services, then Brazil has a trade      .

 

In the absence of      , a country cannot consume more than it produces.

 

Without trade, a country's consumption possibilities equals its

 

If China focuses its mining production on rare earth metals and the United States focuses its mining production on copper, these countries are

 

The alternative combinations of final goods and services that could be produced with available resources represent a country's _____.

 

      possibilities shows the alternative combinations of goods and services that a country could consume in a given time period.

 

If the U.S. was producing 60 zillion loaves of bread per year and does not trade, how much wine could the U.S. consume?

 

A country cannot consume more than it produces, and is therefore limited to its production-possibilities, in the absence of _______.

 

Which of the following can expand a nation's consumption possibilities?

 

Without trade, a country's consumption possibilities _____ its production possibilities.

 

Specialization and trade create the possibility that a country's consumption possibilities _______ its production possibilities.

 

The alternative combinations of goods and service an economy can consume is known as:

 

If the U.S. was producing 80 zillion loaves of bread per year and does not trade, how much wine could the U.S. consume?

 

A nation can expand its consumption possibilities through:

 

The benefit of specialization is that through changes in individual countries' output mixes, total world output can      . (Insert one word.)

 

Specialization and trade allow countries to supplement their own domestic production possibilities and consume ______ than if they were self-sufficient.

 

Specialization and trade allow countries to consume ______ if they were self-sufficient.

 

When nations specialize in production, they can export one good and import another and end up with more total goods to consume than they had without trade. This is the idea of

 

Specialization and trade allows countries to

 

What are key components of gains from trade?

 

In the United States, the opportunity cost of 1 ton of beef is 1 ton of poultry, and in Canada the opportunity cost of 1 ton of beef is 2 tons of poultry. This means:

 

Through specialization and       based on the principle of comparative advantage, the world economy can achieve a more efficient allocation of resources.

 

The principle of comparative advantage says that total output will be greatest when each good is produced by the country that has the lowest       cost for that good.

 

When two countries obtain more of both products after specializing and exchanging than they would have on their own, it is referred to as

 

Which of the following statements summarize the case for free trade based on the theory of comparative advantage?

 

What are the steps to gain from trade? Arrange the steps from first to last. 

 

If the opportunity cost of 1 ton of vegetables is 0.5 tons of beef in Mexico and the opportunity cost of 1 ton of vegetables is 1 ton of beef in the United States, then Mexico has the comparative advantage in producing _____ and the U.S. has the comparative advantage in producing _____.

 

Mutual gains from trade is one benefit of _____. 

 

Gains from trade will be maximized when any particular good is produced by the nation having the lowest _______ cost, or the _____ advantage for that good.

 

The principle of comparative advantage says that total output will be greatest when each good is produced by the country that has the

 

If a country can produce a good with fewer resources than others, it has a(n)       advantage in that good.

 

Comparative advantage says that gains from trade will be greatest when each good is produced by the country that has the _____ for that good.

 

In the United States, the opportunity cost for 1 ton of beef is 1 ton of vegetables, and for Mexico the opportunity cost for 1 ton of beef is 2 tons of vegetables. This means:

 

Gains from trade will be maximized when any particular good is produced by the nation having the _____ opportunity cost, or the _____ advantage for that good.

 

A country has a(n) _____ advantage when it can produce a good with fewer resources than another country but a(n) ______ advantage when it produces at a lower opportunity cost than another country.

 

Comparative advantage says that gains from trade will be greatest when each good is produced by the country that has the lowest domestic             for that good. (Insert two words.)

 

Suppose two countries, A and B, both produce an equal quantity of automobiles. However, country B produces its output using more resources per car than country A. Which of the following must be true?

 

The rate at which goods are exchanged between two countries is called

 

The terms of trade, like the price of any good, will depend on the demand and supply of the good in each country. The only point we can make for certain is that the terms of trade will end up somewhere between the limits set by each country's _______.

 

If the opportunity cost of 1 ton of copper is 2 tons of tin in the United States and the opportunity cost of 1 ton of copper is 3 tons of tin in Mexico, then in order for both countries to gain from trade, the possible terms of trade would be

 

Which of the following statements summarize the case the for trade based on the theory of comparative advantage?

 

Suppose two countries, A and B, both produce automobiles with the same amount of labor, raw materials and other necessary inputs. However, country A simply cannot produce as many units of output as country B. Which of the following must be true?

 

The terms of trade, like the price of any good, depend on the willingness of       participants to buy or sell at various prices.

 

The exchange rate between two countries for the products that each produces is called the

 

True or false: Workers in import-competing industries have an economic incentive to restrict trade.

 

A country will not trade unless the terms of trade are superior to domestic _______

 

Workers and producers who compete with imported products (who work in import-competing industries) _______ an economic interest in restricting trade.

 

If the opportunity cost of 1 ton of beef is 1 ton of vegetables in the United States and the opportunity cost of 1 ton of beef is 2 tons of vegetables in Mexico, then in order for both countries to gain from trade, the possible terms of trade would be

 

Workers and producers who work in industries where products are       do not have an economic interest in restricting trade.

 

True or false: The terms of trade, like the price of any good, depend on the willingness of market participants to buy or sell at various prices.

 

International trade

 

Which of the following groups have an incentive to restrict trade?

 

A tariff is designed to:

 

True or false: Workers and producers who compete with imported products—who work in import-competing industries—have an economic interest in restricting trade

 

Arguing for a tariff to save U.S. jobs is popular during a recession because

 

True or false: Workers and producers who work in industries where products are exported have an economic interest in restricting trade.

 

Consumers in general have a(n) _______ standard of living as a result of international trade.

 

A       is designed to shield domestic producers from foreign competition through a tax on imported goods.

 

A tariff on an imported good makes that good _______ expensive to _______ consumers.

 

The most likely effects of tariffs are to impose ______ on domestic consumers but ______ to the producers of the protected goods in the importing economy.

 

An import quota

 

In the absence of trade, the interaction of the quantity demanded and quantity supplied determines the

 

Comparing the trade equilibrium to the non-trade equilibrium, we find that non-trade equilibrium results in _______ prices and _______ consumption.

 

Microeconomic gains from trade are _______ the microeconomic losses.

 

Four direct effects of tariffs are an increase in prices, domestic producers are better off, domestic consumers are worse off, and ______.

 

A tariff on an imported good makes that good

 

A limit on the amount of a good that can be imported into a country is known as a(n)

 

In the absence of trade, the equilibrium is determined by the interaction of domestic       and      .

 

In terms of trade restrictions, which of the following statements is true?

 

Comparing the trade equilibrium to the non-trade equilibrium, we find that trade equilibrium results in _______ prices and _______ consumption.

 

The use of safety regulations to block Mexican trucking companies from using U.S. roads to deliver goods is an example of a

 

Which of the following are four direct effects of a tariff?

 

Since the U.S. uses dollars and the European Union uses euros, trade between the U.S. and Europe require:

 

The _______ rate refers to the value of one currency in terms of another currency.

 

Import quotas are a       threat to competition than tariffs.

 

The U.S. uses product standards, licensing restrictions, restrictive procurement practices and other _______ barriers to restrict imports.

 

The dollar price of a foreign good is found by ______ the foreign price and the exchange rate (in dollars per unit of the foreign currency).

 

So long as each nation has its own      , every trade will require the use of two different currencies at some point.

 

A(n) _____ is the price of one country's currency expressed in terms of another's.

 

When a currency       in value, fewer units of it are needed to buy a single unit of some other currency.

 

When a currency       (one word) in value, more units of it are needed to buy a single unit of some other currency.

 

If you multiply the foreign price by the exchange rate, what is determined?

 

If a nation's currency depreciates, some foreign currency       relative to it.

 

Suppose the exchange rate for euros goes from 1 euro = $1 to 1.5 euros = $1. This means that European goods have now become

 

What happens to a nation's currency if its supply increases?

 

When the dollar price of a pounds falls, for example, from $2 = 1 pound to $1 = 1 pound, the dollar has depreciated relative to the pound.

 

In the market for dollars, the market activities that influence the demand of dollars does not include:

 

When the dollar price of pounds rises, for example, from $1 = 1 pound to $2 = 1 pound, the dollar has       (appreciated/depreciated) relative to the pound.

 

If there is an increase in Japanese attendance at amusement parks in California, we would expect to see an _________ for U.S. dollars.

 

If a nation's currency appreciates, some foreign currency relative to it       (appreciates/depreciates).

 

The       curve for dollars is downward sloping.

 

Suppose the exchange rate for euros goes from 1.5 euros = $1 to 1 euro = $1. This means that European goods have now become

 

If the supply of a nation's currency      , that currency will depreciate.

 

In the market for dollars, the market activities that does not influence the supply of dollars include:

 

In the market for dollars, which of the following market activities would increase the demand for dollars?

 

The supply curve for dollars is

 

A change in consumer tastes or preferences for the products of a foreign country may alter the       for that nation's currency and change its exchange rate.

 

The       rate for a currency is determined by the intersection of the supply and demand curves for the currency that is to be purchased.

 

The demand curve for dollars is

 

True or false: All else being equal, if an increase in preference leads to an increase in demand for a nation's currency, that nation's currency will appreciate.

 

In the market for dollars, the market activities that influence the supply of dollars include:

 

The main goals of the General Agreement on Tariffs and Trade are:

 

The       curve for dollars is upward sloping.

 

The World Trade Organization

 

The exchange rate for a currency is determined by the intersection of ______ the currency that is to be purchased.

 

All else being equal, if the demand for a nation's currency declines, that currency will       in value.

 

What were the effects of some of the trade policy changes under GATT?

 

What institution is in charge of overseeing trade agreements and ruling on disputes relating to them?

 

All else being equal, if the demand for a nation's currency      , that currency will appreciate.