Upgrade to remove ads
Only $35.99/year

ECON 101 - Chapter 5 Homework

Terms in this set (41)

...
If the world price of a good is below its domestic price, the country will:
A) limit imports.
Trade protection policies
A) limit imports.
B) benefit domestic producers and domestic consumers equally.
C) limit exports.
D) benefit domestic consumers at the expense of domestic producers.
C) exports.
Goods and services sold to other countries are known as:
A) exchange goods.
B) factors.
C) exports.
D) imports.
...
If the world price is less than the autarky price and the domestic country imports the good, the domestic price of the good will:
A) increase.
B) fall to zero.
C) decrease.
D) remain constant.
True
True or False: The Heckscher-Ohlin model predicts that China and Bangladesh, relative to the rest of the world, will have a comparative advantage in producing clothing because this work is labor intensive and those countries have abundant labor. This is _____.
B) decrease.
If the world price is less than the autarky price and the domestic country imports the good, the domestic price of the good will:

A) remain constant.
B) decrease.
C) increase.
D) fall to zero.
D) does not attempt to increase or decrease the levels of imports and exports that occur naturally as a result of demand and supply.
If a country engages in free trade, the government:

A) places price controls on some goods.
B) balances its budget.
C) exploits its absolute advantage.
D) does not attempt to increase or decrease the levels of imports and exports that occur naturally as a result of demand and supply.
B) trade is bad for workers in poor exporting countries because those workers are paid very low wages.
According to the sweatshop labor fallacy:

A) only countries with low wages benefit from trade.
B) trade is bad for workers in poor exporting countries because those workers are paid very low wages.
C) if a high-wage country imports goods from a low-wage country, the standard of living of the importing country will fall.
D) the gains from trade are the result of exploiting absolute advantage.
D) import that good.
If the world price of a good is below its domestic price, the country will:
A) put a price floor on that good.
B) export that good.
C) have a surplus of that good.
D) import that good.
A) increase.
When a tariff is levied on a good, the domestic price of that good will:
A) increase.
B) decrease.
C) remain constant.
D) fall by the amount of the tariff.
True
True or False: Georgia should specialize in peaches and produce 30 bushels, then trade with Alabama for tomatoes. This is _____.
True
True or False: The European Union (EU) sets tariffs at the same rate on goods from outside the EU that enter the union. This is _____.
B) 1 ton of lemons and 5 iPhones
If Brazil exports 3 iPhones and imports 1 ton of lemons, how much of both products will Brazil consume?
A) 1 ton of lemons and 3 iPhones
B) 1 ton of lemons and 5 iPhones
C) 2 tons of lemons and 8 iPhones
D) 3 tons of lemons and 11 iPhones
B) 300; exported
If the world price is $40, _____ calculators will be _____.
A) 100; exported
B) 300; exported
C) 300; imported
D) 400; imported
A) QSQD cars will be imported.
At the world price of PW,:
A) QSQD cars will be imported.
B) QSQST cars will be imported.
C) QSTQDT cars will be imported.
D) QDTQD cars will be imported.
Recommended textbook explanations

Krugman's Economics for AP*

2nd EditionDavid Anderson, Margaret Ray
1,042 explanations

Principles of Economics

8th EditionN. Gregory Mankiw
814 explanations

Principles of Microeconomics

7th EditionN. Gregory Mankiw
508 explanations

Principles of Macroeconomics

5th EditionBen Bernanke, Robert Frank
439 explanations