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13 Cards in this Set
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84. (Table: Production in the United States and China) In the table, the productivity of workers in the textile and apparel and wheat sectors is given for the United States and China. The average worker in the United States produces _____ more apparel sales than the average worker in China. |
B) 8.8 |
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85. (Table: Production in the United States and China) In the table, the productivity of workers in the textile and apparel and wheat sectors is given for the United States and China. The table shows that the United States has an absolute advantage in: |
D) The United States has both an absolute advantage in textile and apparel manufacturing. |
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86. (Table: Production in the United States and China) Consider the productivity of workers in the table. In the United States, to produce an additional $1,000 worth of apparel sales, _____ bushels of wheat must be forgone. In China, to produce an additional $1,000 worth of apparel sales, _______ bushels of wheat must be forgone. |
B) 0.23; 0.007 |
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87. It can be shown that differences in “before-trade” relative prices will determine |
B) which good each nation will export or import |
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88. A nation will export the product in which it has a comparative advantage, which results from the good being relatively ____ than in the importing nation. |
A) cheaper |
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89. At some point, as the price of exported products is bid up and the price of the product imported falls, the prices of the products in both nations: |
D) equalize. |
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90. When two nations have achieved identical relative prices of the two traded products, we have: |
C) international trade equilibrium |
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91. Compared with constant cost production, if production occurs under increasing cost conditions, it is MORE likely that countries will: |
B) incompletely specialize |
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92. Suppose a nation increases the quantity of a product it exports. To attract the labor resources needed to support the increased production, it must: |
A) pay higher wages |
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93. The Ricardian model (with constant opportunity costs) predicts that a nation will ______________ in the production of the good it exports. |
D) specialize completely |
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Output in the United States and China U.S. Output per Worker Chinese Output per Worker Apparel $100,000 $10,000 Wheat $200,000 $5,000 94. (Table: Output in the United States and China) Using the data in the table, what will happen to the U.S. labor force after trade occurs with China? |
D) U.S. labor will move from apparel to agriculture, where its marginal productivity is higher. U.S. jobs in apparel will be exported to China, wheat exports will create additional jobs in agriculture, and the value of output produced by U.S. labor will increase. |
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95. (Figure: Upperia's Production and Consumption) The graph shows Upperia's international trading pattern. Point P is production with trade, and point C is consumption with trade. Which product does Home export? |
A) shoes |
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96. (Figure: Upperia's Production and Consumption) The graph shows Upperia's international trading pattern. Point P is production with trade, and point C is consumption with trade. Which product does Home import? |
B) shirts |
