EU33L3
1
The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point
a
and the slope of its production possibility frontier at that point is 3 cans of dog food per 1 can of soup. Dexter produces at point
b
and the slope of its production possibility frontier at that point is 10 cans of dog food per 1 can of soup. The opportunity cost of a can of soup in Sparta is _______ and the opportunity cost of a can of dog food in Dexter is _______.
3 cans of dog food; 1/10 can of soup
1/3 can of dog food; 1/10 can of soup
1/3 can of dog food; 10 cans of soup
3 cans of dog food; 10 cans of dog food
2
The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point
a
and Dexter produces at point
b
. Sparta has a comparative advantage in _______ and Dexter has a comparative advantage in _______.
dog food; dog food
soup; dog food
dog food; soup
soup; soup
3
The figures show the production possibility frontiers of Sparta and Dexter. Without trade, Sparta produces at point
a
and Dexter produces at point
b
. When Sparta and Dexter trade with each other, Sparta imports _______ and Dexter imports _______.
soup; soup
dog food; soup
soup; dog food
dog food; dog food
4
The countries of Shark and Whale both produce fish food and dog biscuits. Shark has a comparative advantage in the production of fish food. Whale will import _______ and consumption in Whale _______.
fish food; is outside its PPF
dog biscuits; outside its PPF
dog biscuits; is on its PPF
fish food; is on its PPF
5
The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. If the two countries do not trade with each other, the price of a candle is ____ in one country and ______ in the other country.
£3; £3
£5; £5
£3; £10
£10; less than £3
6
The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. With free international trade, the price of a candle ______________.
is £5
depends on each country's demand for and supply of candles
is £3
is £10
7
The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. With free trade, _______________.
trade is balanced
exports are greater than imports
exports are sometimes greater than imports and sometimes less than imports
imports are greater than exports
8
The figure shows the international market for light bulbs on a two country planet. Before a tariff of £1.50 is levied on light bulbs, 8 million light bulbs are traded each year. After the tariff is introduced, the exporting firm receives _______ per light bulb and the consumers in the importing country pay _______ per light bulb.
£3.00; £4.00
£4.00; £2.50
£4.00; £4.00
£2.50; £4.00
9
The figure shows the international market for light bulbs on a two country planet. Before a tariff of £1.50 is levied on light bulbs, 8 million light bulbs are traded each year. The tariff revenue received by the importing country's government is _____________.
£9 million
£12 million
£15 million
£24 million
10
When a quota is imposed, the gap between the export supply price and the domestic price is captured by the _______, and when a VER is imposed, the gap between the export supply price and the domestic price is captured by the _______.
exporter; importer
importer; exporter
importer; government of importing country
exporter; government of importing country