Exam 32: Comparative Advantage and the Open Economy

Maximum Feasible Hourly Production Rates (in Tons)of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons)30 60 Beef (pounds)10 30 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in France is

Suppose Ethan and Ava work in a farm that grows apples and oranges of the same size. In one hour, Ethan can pick 8 pounds of apples or 1 pound of oranges. Ava can pick 6 pounds of apples or 1 pound of oranges. It can be concluded that

In the long run, imports will most likely be paid for with

Maximum Feasible Hourly Production Rates (in Tons)of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons)30 60 Beef (pounds)10 30 -Specialization allows for

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 3 Bicycles 2 6 -Refer to the above table. If opportunity costs are constant and the two countries trade,

Maximum Feasible Hourly Production Rates (in Tons)of Either Knives or Forks Using All Available Resources Product Country Alpha Country Beta Knives 9 3 Forks 6 12 -Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then

If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X

The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition

Maximum Feasible Hourly Production Rates (in Tons)of Either Cookies or Coffee Using All Available Resources Product Country Alpha Country Beta Cookies 3 8 Coffee 9 4 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________.

Countries engaged in international trade specialize in production based on

In the long run, if imports increase, then exports

The infant industry argument has a normative economic basis because

Maximum Feasible Hourly Production Rates (in Tons)of Either Knives or Forks Using All Available Resources Product Country Alpha Country Beta Knives 9 3 Forks 6 12 -Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then they will trade if the rate of exchange is

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 3 Bicycles 2 6 -Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a bicycle in the United States is equal to ________, and the opportunity cost of producing a bicycle in Mexico is ________.

If there are two goods and two countries, then one country can have

The European Union started out as a

U.S. job losses cited by anti-trade critics

The World Trade Organization is a successor organization to the

A government-imposed restriction on the quantity of a specific good that another country is allowed to sell in the U.S. is

Maximum Feasible Hourly Production Rates (in Tons)of Either Cookies or Coffee Using All Available Resources Product Country Alpha Country Beta Cookies 3 8 Coffee 9 4 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________.