Specialization based on absolute advantage leads to gains from trade.

Group of answer choices

True

False

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Question 2

2pts

Exhibit 19.4

Refer to Exhibit 19.4, which shows the supply of and the demand for baseballs in the United States. If the world price is $3 per baseball and a tariff of $1 per baseball is imposed, the net welfare loss of the tariff is shown by area(s) _____

Group of answer choices

c and g.

b and f.

g.

a.

c.

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Question 3

2pts

Which of the following is not a type of trade restriction?

Group of answer choices

low-interest loans to foreign buyers

restrictive health and safety standards

export subsidies to domestic producers

economies of scale

domestic content requirements

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Question 4

2pts

Differences in resource endowments refer to differences in _____

Group of answer choices

the tariffs charged by each country.

the quality of resources available in different nations.

production patterns across nations.

the quantity, but not the quality, of resources available in different nations.

consumption patterns across nations.

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Question 5

2pts

A lump-sum tax per unit on imports is known as _____

Group of answer choices

animport substitution.

an import concession.

an ad valorem tariff.

a specific tariff.

animport quota.

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Question 6

2pts

Originally,GATT members had agreed to three items. One of those was to _____

Group of answer choices

increase trade restrictions, after OPEC significantly raised oil prices.

manage legal and accounting requirements for U.S. tariffs and quotas.

treat all members equally with respect to trade.

develop a free trade zone across 50 states.

protect U.S. industries and decrease world trade.

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Question 7

2pts

Exhibit 19.3

Refer to Exhibit 19.3, which shows the supply of a product in the United States. If the world price is P,U.S. producers would supply _____

Group of answer choices

Q

Q"

0.5 x (Q'-Q)

0.5 x (Q"-Q')

Q'

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Question 8

2pts

The largest category of U.S. exports in 2016 was _____, which accounted for _____ of total exports.

Group of answer choices

food; 31 percent

services; 31 percent

consumer goods; 9 percent

industrial supplies; 18 percent

capital goods; 24 percent

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Question 9

2pts

For each pound of blueberry cheesecake Abura produces, it gives up the opportunity to make 150 screwdrivers. Mayo can produce one pound of blueberry cheesecake for every 300 screwdrivers it produces.If specialization and trade were to occur between these two countries,which of the following is true of opportunity costs in the two countries?

Group of answer choices

The opportunity cost of producing screwdrivers is identical in both countries.

In Mayo, the opportunity cost of producing one unit of screwdriver is one pound of cheesecake.

The opportunity cost of producing cheesecakes is lower in Abura than in Mayo.

The opportunity cost of producing cheesecakes is identical in both countries.

The opportunity cost of producing screwdrivers is lower in Abura than in Mayo.

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Question 10

2pts

Which of the following is true of an export subsidy?

Group of answer choices

It specifies that a certain portion of a final good must be produced domestically.

It promotes free international trade.

It gives rise to unsustainable government deficits.

It limits free trade.

It increases the price of a good in the domestic market.