Question : 111.Based the information in Table 17.2, the output of corn : 1233018

 

111.Based on the information in Table 17.2, the output of corn and wheat would be greatest if:   

A. Both countries prohibited trade.

B. Country B specialized in producing corn and Country A specialized in producing wheat.

C. Country A specialized in producing corn, and Country B specialized in producing wheat.

D. Country B produced both goods and exported them to Country A.

Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1. Without trade, Japan produces at point A and the United States produces at point B. Use the figure to answer the question(s) below.  

 

112.If the countries are at points A and B in Figure 17.1 and do not trade, what is the total number of motorcycles produced per day?   

A. 1,000.

B. 2,000.

C. 3,000.

D. 4,000.

113.If the countries are at points A and B in Figure 17.1 and do not trade, what is the total number of DVD players produced per day?   

A. 1,000.

B. 2,000.

C. 3,000.

D. 4,000.

114.In Figure 17.1 what is the opportunity cost of a DVD player in Japan?   

A. 1/2 of a motorcycle per DVD player.

B. 1 motorcycle per DVD player.

C. 2 motorcycles per DVD player.

D. 1/3 of a motorcycle per DVD player.

115.In Figure 17.1 what is the opportunity cost of a motorcycle in Japan?   

A. 1/2 of a DVD player per motorcycle.

B. 1 DVD player per motorcycle.

C. 2 DVD players per motorcycle.

D. 3 DVD players per motorcycle.

116.Which of the following best describes the comparative advantage of the two countries illustrated in Figure 17.1?   

A. Japan has a comparative advantage in both goods.

B. Japan has the comparative advantage in DVD players; the United States in motorcycles.

C. Japan has the comparative advantage in motorcycles; the United States in DVD players.

D. The United States has a comparative advantage in both goods.

117.Suppose both countries illustrated in Figure 17.1 specialize completely in the good they produce with the lowest opportunity cost. What is the total production of DVD players?   

A. 2,000.

B. 3,000.

C. 3,500.

D. 4,000.

118.Suppose both countries illustrated in Figure 17.1 specialize completely in the good they produce with the lowest opportunity cost. What is the total production of motorcycles?   

A. 2,000.

B. 3,000.

C. 3,500.

D. 4,000.

The model represents the market for sugar in a small nation. Assume S1 represents the U.S. domestic supply of sugar and S2 represents the supply in the U.S. under conditions of free trade  

 

119.Refer to Figure 17.2. What does S3 most likely represent?   

A. U.S. supply under tariff-restricted trade.

B. U.S. supply under quota-restricted trade.

C. The result of a foreign country dumping this good on the U.S. market.

D. Production possibilities under conditions of free trade.

120.If sugar imports are not restricted in any way in Figure 17.2, the price charged by domestic producers is:   

A. P1.

B. P2.

C. P3.

D. Cannot be determined with the given information.

121.The domestic price paid by the nation’s consumers after the imposition of a tariff in Figure 17.2 will be:   

A. P1.

B. P2.

C. P3.

D. Cannot be determined with the given information.

122.In Figure 17.2, in the absence of trade, the domestic price and sales of sugar will be determined by the intersection of D and:   

A. S1.

B. S2.

C. S3.

D. Cannot be determined with the given information.

123.In Figure 17.2, in the absence of trade, the domestic price of sugar will be:   

A. P1.

B. P2.

C. P3.

D. Cannot be determined with the given information.

124.A News Wire article in the text: “California Grape Growers Mixing Foreign Wine” states that the growers are angry at each market percentage point gain of foreign wine in the U.S. wine market, the grape growing industry faces economic ruin. Cheap foreign wine imports are being blended with California wine. The kind of protectionism they are most likely asking for is:   

A. A tariff.

B. An industry subsidy.

C. Worker assistance.

D. A price ceiling.

125.A HEADLINE article in the text indicates that the U.S. sugar producers favor a quota on imported sugar. Enforcement of a sugar quota will cause the price of sugar to _____ and quantity to ____.   

A. Increase; decrease

B. Increase; increase

C. Decrease; decrease

D. Decrease; increase