Question 1 [1 point) It the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if: x\". '\\_/' a} There can be no mutual gains from trade. /'\\. '\\_/l b) The USA specializes in potatoes because of its comparative advantage in producing potatoes. x\". '\\_/' C} The USA specializes in wheat because of its absolute advantage in producing wheat. /'\\. '\\_/l Cl} The USA specializes in wheat because of its comparative advantage in producing wheat. Question 2 (1 point) Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars or 18,000,000 bottles of wine with one year's worth of labor. From these numbers, we can conclude: ( a) France has a comparative advantage in the production of cars. ( b) The USA has a comparative advantage in the production of wine. ( c) The USA has an absolute advantage in the production of cars. ( d) France has an absolute advantage in the production of wine.Question 3 (1 point} The slope of the production possibility frontier is determined by the _____ of expanding production of one good, measured by how much of the other good would be lost. l/\\| \\_/ a} specialization /'_\\ '\\_/l b) absolute advantage l/\\l \\_/ C} relative advantage l/\\l \\_/ Cl} opportunity cost Question 4 (1 point) Which of the following is true? (a) A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. ( b) A nation cannot have an absolute advantage in the production of every good. c) A nation can have a comparative advantage in the production of every good, but not an absolute advantage. (d) A nation cannot have a comparative advantage in the production of every good.Question 5 [1 point) Colombia produces coffee with less labor and land than any other country: it therefore necessarily has: /'\\ '\\_/' a) an absolute advantage in coffee production /'\\ '\\_/| b) both a comparative and absolute advantage in coffee production. /'\\ '\\_/' C} an absolute advantage and comparative disadvantage in coffee production. /'\\ '\\_/' Cl) a comparative advantage in coffee production. Question 6 (1 point) The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of O a) opportunity cost b) specialization O c) maximum production O d) absolute advantageQuestion 7' (1 point) The idea behind comparative advantage reflects the possibility that one party: /'\\ '\\_/l a) may be able to produce something at a lower dollar cost than another party. /'\\ | | \\J b) with an absolute advantage in producing two different may export goods both of those goods to the other party. /'\\ '\\_/l C) mayr be able to produce something at a lower opportunity cost than another party. /'\\ l\\_/l Cl) may be able to produce everything relatively more eiciently than another party. Question 8 (1 point) are numerical limitations on the quantity of products that can be imported. O a) Tariffs O b) Import quotas O c ) Taxes O d) Nontariff barriersQuestion 9 {1 point} Which of the following would be expected it the tariff on foreign-produced automobiles were increased? /'\\ '\\_/l a} The number of unemployed workers in the domestic automobile industry would rise. / \\ l\\_/l b) The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations. /'\\ '\\_/l C} The domestic price ofautomobiles would fall. /'\\ '\\_/l Cl) The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise. Question 10 {1 point) An import quota or tariff on French wine that raises the prices for wine will probably: /'\\ '\\_/' a) hurt domestic wine drinkers but help domestic wineries. which will gain from the higher prices. /'\\ l\\_/' b) hurt domestic wineries, which will lose business as a result of the higher prices. /'\\ '\\_/l C) hurt both domestic wine drinkers and domestic wineries. but this will be more than offset by a reduction in driving fatalities. /'\\ '\\_/' Cl) hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. Question 11 (1 point) are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products. a) Nontariff barriers O b) Import ceilings O c) Quotas O d) TariffsQuestion 12 (1 point) means selling goods below their cost of production. a) Import quotas b) Non-tariff barriers O c) Protectionism O d) DumpingQuestion 13 {1 point) An import quota does which of the following? /'\\ '\\_/' 3) decreases the price of the imported goods to consumers /'\\ '\\_/l b) increases the price of the domestic goods to consumers /'\\ I\\_/' C} redistributes income away from domestic producers of those products toward domestic producers of exports |/\\| \\_/ d) both ejand c) Question 14 (1 point) After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will: O a) increase. O b) decrease. O c) change in an indeterminate manner. O d) remain the same.Question 15 (1 point) The acronym GATT stands for: ( a) General Accounting for Tariff and Trade. ( b) General Association on Technology and Trade. O c) General Agreement on Tariffs and Trade. O d) General Association for Trade and Tariffs.Question 16 (1 point) Raising an existing tariff on grapes from Argentina will: ( a) increase American imports of grapes from Argentina. ( b) increase American consumption of domestically produced grapes. ( c) increase total American consumption of grapes. O d) increase domestic production of grapes.Question 17 (1 point) of European trade is intra-industry trade. of U.S. trade and As measured in 2014, about a) 1096; 1096 O b) 3096; 30% O c) 9096; 9096 O d) 6096; 609%