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The fundamental force that generates international trade is
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A country with a comparative advantage in the production of a good will
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Economics
18.1 International Trade
| Question | Answer |
|---|---|
| The fundamental force that generates international trade is | comparative advantage |
| A country with a comparative advantage in the production of a good will | export the good |
| If a nation can produce a good or service at the lowest opportunity cost, then it | can sell the product at a lower price than other nations |
| The United States imports T-shirts because | foreign nations have a lower opportunity cost of production |
| 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 ____ | decrease; increase |
| Suevania opens its doors to trade with Barvania. Barvania has a comparative advantage in the production of machinery. Hence, one trade occurs Suevania's consumers will buy ____ machinery and pay a ____ price than before | more; lower |
| Need to learn to graph supply and demand | You Tube it |
| The figure above show the US Demand and US Supply curves for cherries. In the absence of trade, cherry farmers would receive _____ per pound of cherries | $1.50 (Pt on Curve) |
| The figure above shows the US demand and US Supply curves for cherries, In the absence of trade, how many pounds of cherries would U.S. farmers produce? | $400,000 (Pt on Curve) |
| The figure above show the U.S. demand and U.S. supply curves for cherries. Suppose the world price of cherries is $2 per pound. At this price, U.S. consumption of cherries will equal | $200,000 (Where price hit pt on demand curve) consumption leads to demand curve |
| The figurek above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per point the production of cherries in the United States will equal ____ poinds | $600,000 (Where price hit pt on supply curve) production leads to supply curve |
| The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total exports from the United States to other nations will equal | $400,000 (Export: Production - Consumption |
| Most t-shirts bought by Americans are made in Asia. As a result of free trade, the production of t-shirt in America has | decreased |
| When a nation exports a good or service, employment in that industry | increases |
| The Figure above shows the production possibilities frontier for the United Kingdom and France. What is the Opportunity Cost OF one bushel of wheat in France | 1/4 of a pound of fish |
| Opportunity Cost | Loss/Gain |
| The figure above shows the production possibilities frontiers for the United Kingdom and France. What is the Opportunity Cost OF one bushel of wheat for the United Kingdom | 1 pound of fish |
| The figure above shows the production possibilities frontiers for the United Kingdom and France. If the United Kingdom and France specialize and engage in trade, the United Kingdom will produce and export ______ and France will produce and export _______ | fish; wheat |
Created by:
malanave