ECON 101 CHAPTER 7 EXAM QUESTIONS AND CORRECT ANSWERS LATEST UPDATE 2024 (100% PASS)
The United States has a comparative advantage in producing airplanes if - Answers it can produce a larger quantity than can other nations
Prior to international trade, the price of good X is lower in country A th...
The United States has a comparative advantage in producing airplanes if - Answers it can produce a
larger quantity than can other nations
Prior to international trade, the price of good X is lower in country A than in country B. This means that
we know that - Answers country B has an absolute advantage in the production of product X
International trade arises from - Answers the advantage of execution.
The fundamental force that drives international trade is - Answers importation duties and tariffs.
When the principle of comparative advantage is used to guide trade, then a country specializes in
producing only - Answers goods with the highest opportunity cost.
U.S. producer surplus ________ when the United States imports a good and U.S. producer surplus
________ when the United
States exports a good. - Answers increases; increases
Based on the table below, at what world price would the country export the good? - Answers at only $8
In the figure above, international trade ________ producer surplus in the United States by ________. -
Answers decreases; $192 million
A country specializes in the production of goods for which it has a comparative advantage, so - Answers
(18)
A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus
will ________, producer
surplus will ________, and total surplus will ________. - Answers increase; decrease; decrease
In the figure above, with international trade ________ helicopters per year are produced in the United
States. - Answers 240
Based on the table below, at what world price would the country import the good? - Answers It is
impossible to say.
The Smoot-Hawley Act introduced - Answers the highest tariffs set by the United States in the last 90
years.
In the figure above, the tariff_____ U.S. imports of shirts by ______ million shirts per year. - Answers
decreases; 16
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