Question :
31) The above figure shows the U.S. market for flip-flops. : 1226615
31) The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops.
A) 300,000
B) 500,000
C) 700,000
D) 0 because the United States exports flip-flops
E) 400,000
32) The above figure shows the U.S. market for flip-flops. With international trade, U.S. consumers buy ________ flip-flops and U.S. producers produce ________ flip-flops.
A) 500,000; 500,000
B) 300,000; 700,000
C) 500,000; 300,000
D) 700,000; 300,000
E) 700,000; 500,000
33) The above figure shows the U.S. market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________.
A) $12; $14
B) $500; $300
C) $14; $12
D) $700; $300
E) $500; $700
34) With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade, the United States will ________ wheat.
A) has; export
B) has; not trade
C) has; import
D) does not have; export
E) might have; export
35) Once international trade occurs, a country with a comparative advantage in the production of a good will ________ production of the good and ________.
A) decrease; import the good
B) increase; export the good
C) not change; import the good
D) increase; import the good
E) decrease; export the good
36) Airlines in other countries buy airplanes from Boeing because
A) it is illegal to produce airplanes in many other countries.
B) Boeing’s prices are less than what the airlines would pay for planes built in their own country.
C) trade treaties require such purchases.
D) these nations must buy something from the United States.
E) None of the above answers is correct.
37) When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________.
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
E) do not change; increases
38) The table above has the domestic demand and domestic supply schedules for a good. According to the table, the no-trade price of the good is
A) $4.
B) $6.
C) $8.
D) $10.
E) $2.
39) The table above has the domestic demand and domestic supply schedules for a good. If the world price of the good is $10 and international trade occurs, then according to the table
A) domestic production is higher before trade than after trade.
B) the country imports 16 units a day.
C) the country imports 6 units a day.
D) the country exports 6 units a day.
E) the country exports 22 units a day.
40) According to the above table, the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.
A) $4; $4
B) $6; $6
C) $8; $4
D) $10; $10
E) $4; $8
