Exam 32: Comparative Advantage and the Open Economy

"It is possible to restrict imports and still maintain a fixed level of exports." Do you agree or disagree? Why?

The United States is considered by the Institute for Management Development to be the most competitive economy because

Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this

-Refer to the above figures. A tariff is placed on a foreign good. Which figures represents the situation in the domestic market for a competing domestic good?

One economic truism is that any nation's restriction of imports will ultimately lead to

The Number of Worker Days to Produce One Cuckoo Clock or Movie Using All Available Resources U.S. Switzerland Product (Worker-Days)(Worker-Days) Cuckoo Clocks 8 6 Movies 12 4 -Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________.

When the principle of comparative advantage determines trade, then a country will

Suppose a new EU member begins substituting its imports from non-EU members to other EU members. This is an example of

Which of the following is consistent with international trade theory?

During the past 40 years, U.S. exports as a percent of GDP and U.S. imports as a percent of GDP

The contention that domestic unions tend to want to restrict foreign competition with tariffs is

"Everybody has a comparative advantage in something." Do you agree or disagree? Why?

For the infant-industry argument for tariffs to be appropriate, it is necessary that

-According to the above table, if these two countries trade,

That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of

The trend in current tariff laws is to

The successor organization to GATT, created in 1995, is the

When a tariff is imposed, the supply curve for the imported good

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, a comparative advantage in producing beef is possessed by

Which of the following is NOT an example of a regional trade bloc?