Exam 9: Comparative Advantage and the Gains From International Trade

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called

Which of the following statements about the importance of trade to the U.S.economy is true?

As a percentage of GDP, exports are greater than imports for which of the following countries?

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business.Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1.Select the statement that accurately interprets the data in the table.

Once a country has a comparative advantage in producing a product, it cannot lose that advantage.

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

The Trans-Pacific Partnership (TPP)would ________ tariffs on most goods and services shipped between partnership countries and also ________ so-called non-tariff barriers to trade, such the licenses governments require to import some goods.

Today, the United States charges an average tariff rate

Figure 9-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.With the tariff in place, the United States consumes

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

The process of countries becoming more open to foreign trade and investment is known as outsourcing.

Figure 9-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.With the tariff in place, the United States produces

In 1930, the U.S.government attempted to help domestic firms that were harmed by the Great Depression by

Table 9-5 Table 9-5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 9-5. a.Which person has an absolute advantage in the production of bows? arrows? b.Which person has a comparative advantage in the production of bows? c.Which person has a comparative advantage in the production of arrows?

Table 9-3 Bryce and Tina are artisans who produce homemade candles and soap.Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 9-3.Select the statement that accurately interprets the data in the table.

Figure 9-1 Figure 9-1 shows the U.S.demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What will be the domestic quantity supplied?

Exports are domestically produced goods and services

The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialization in production.State three reasons why this is case.

Imposing tariffs in cases of dumping