Question 1 (1 point) The fundamental force that drives international trade is O comparative advantage. absolute advantage. importation duties and tariffs. export licenses. Question 2 (1 point) With...

Question 1 (1 point) The fundamental force that drives international trade is O comparative advantage. absolute advantage. importation duties and tariffs. export licenses. Question 2 (1 point) With international trade, a country will export tires. Prior to international trade, the the quantity of tires consumed in Question 2 (1 point) With international trade, a country will export tires. Prior to international trade, the quantity of tires produced in the country the quantity of tires consumed in the country. O must be less than might be more than, less than, or equal to must be more than must equal Question 3 (1 point) Question 3 (1 point) Suppose sugar is exported from a nation. In the sugar market who does NOT benefit! from the exports? workers in the industry domestic consumers domestic producers foreign consumers Question 4 (1 point) Question 4 (1 point) Price (dollars per shirt 0 8 16 24 32 40 48 56 64 Quantity (millions of shirts per year) The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. In the figure above, with international trade American consumers buy million shirts per year. 16 48 4:20 PM Question 5 (1 point) Reducing a tariff will the domestic production of the good and total domestic consumption of the good. - the increase: increase decrease: decrease increase: decrease decrease: increase Question 6 (1 point) Question 7 (1 point) Which of the following statements is TRUE? Unlike other types of international trade, offshoring does not bring any gains from trade International trade leads to job losses in both import competing industries and exporting industries. International trade raises wages in developing countries. International trade with rich industrial countries forces people in the developing countries to work for lower wages. Question 8 (1 point) Question 8 (1 point) In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs? The price of bananas for consumers will increase. The quantity of bananas produced in the EU (such as in France and Spain) will increase. The quantity of bananas imported into the EU will increase. Europe will start to export bananas. Question 9 (1 point) Question 9 (1 point) Saved The idea that an industry should be protected because of learning-by-doing until it is large enough to compete successfully in world markets is the argument for protection. cheap foreign labor cinfant industry comparative advantage dumping