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Table 18-1 Table 18-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 18-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 18-1.Select the statement that accurately interprets the data in the table. A) Linda has a comparative advantage in dog bathing. B) Sandy has an absolute advantage in dog bathing. C) Sandy has a comparative advantage in dog bathing. D) Linda has a comparative advantage in dog grooming and dog bathing. Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 18-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 18-1.Select the statement that accurately interprets the data in the table.


A) Linda has a comparative advantage in dog bathing.
B) Sandy has an absolute advantage in dog bathing.
C) Sandy has a comparative advantage in dog bathing.
D) Linda has a comparative advantage in dog grooming and dog bathing.

E) C) and D)
F) A) and B)

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Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product.

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A country can have an absolute advantage...

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Domestically produced goods and services sold to other countries are referred to as


A) capital outflow.
B) exports.
C) imports.
D) transfer payments.

E) B) and C)
F) None of the above

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Which of the following is the best example of a quota?


A) A subsidy from the government to domestic manufacturers of tyres to enable them to compete more effectively with foreign producers.
B) A limit on the quantity of tyres that can be imported from a foreign country.
C) A 40 per cent fee imposed on all imported tyres.
D) A tax placed on all tyres sold in the domestic market to help offset the impact of lost jobs in the domestic tyre industry.

E) A) and D)
F) A) and C)

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The Australian economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.

A) True
B) False

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Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

A) True
B) False

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What is autarky?

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Autarky is a situati...

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In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers


A) agree to meet specific quality standards required by the importing country.
B) limit their exports to a country.
C) pay a tax on all products they export.
D) must agree to import an equal quantity of products that they export.

E) A) and B)
F) A) and C)

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A quota is the same as a voluntary export restraint.

A) True
B) False

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A consequence of increasing marginal costs of producing digital music players in Japan is


A) Japan will not export digital music players.
B) Japan will stop short of complete specialisation in the production of digital music players.
C) Japan will import digital music players from countries that don't experience increasing marginal costs.
D) Japan will likely impose trade restrictions on imported digital music players.

E) None of the above
F) C) and D)

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Table 18-6 Production and Consumption Production Without Trade With Trade Table 18-6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.With trade,what is the total gain in hat production? A) 150 hats B) 300 hats C) 400 hats D) 650 hats Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.With trade,what is the total gain in hat production?


A) 150 hats
B) 300 hats
C) 400 hats
D) 650 hats

E) All of the above
F) A) and B)

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A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a


A) tariff.
B) quota.
C) quantity floor.
D) barricade.

E) B) and C)
F) A) and D)

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What is dumping? Who benefits and who loses from dumping?

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Dumping refers to selling a product for ...

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Table 18-2 Table 18-2 Sarita and Gabriel own S&G Bakery. Table 18-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 18-2.Select the statement that accurately interprets the data in the table. A) Sarita has a greater opportunity cost than Gabriel for baking cakes. B) Sarita's opportunity cost for baking cakes is less than Gabriel's. C) Gabriel has a greater opportunity cost than Sarita for baking pies. D) Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's. Sarita and Gabriel own S&G Bakery. Table 18-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 18-2.Select the statement that accurately interprets the data in the table.


A) Sarita has a greater opportunity cost than Gabriel for baking cakes.
B) Sarita's opportunity cost for baking cakes is less than Gabriel's.
C) Gabriel has a greater opportunity cost than Sarita for baking pies.
D) Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

E) A) and D)
F) None of the above

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Which of the following statements is used to justify protectionism?


A) Free trade leads to higher prices for imported goods.
B) Free trade increases employment by protecting domestic firms.
C) A country should not rely on other countries for goods that are critical to its national defence.
D) Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.

E) A) and B)
F) A) and C)

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________ refers to reductions in a firm's costs that result from an increase in the size of an industry.


A) Internal economies
B) External economies
C) Autarkial dominance
D) Streamlining

E) A) and B)
F) B) and D)

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Table 18-6 Production and Consumption Production Without Trade With Trade Table 18-6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded,how many clocks will Belize gain compared to the 'without trade' numbers? A) -100 B) 100 C) 120 D) 250 Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded,how many clocks will Belize gain compared to the 'without trade' numbers?


A) -100
B) 100
C) 120
D) 250

E) A) and D)
F) A) and C)

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What does it mean for a country to have an absolute advantage in producing a product?

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A country has an absolute adva...

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Table 18-6 Production and Consumption Production Without Trade With Trade Table 18-6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.With trade,what is the total gain in clock production? A) 150 clocks B) 300 clocks C) 2100 clocks D) 2250 clocks Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 18-6.With trade,what is the total gain in clock production?


A) 150 clocks
B) 300 clocks
C) 2100 clocks
D) 2250 clocks

E) A) and B)
F) A) and C)

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What is the difference between imports and exports?

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Imports are goods and services...

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Showing 21 - 40 of 131

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