Question 1

Domestically produced goods and services sold to other countries are referred to as

Accepted Answer

A)  exports. 
B)  imports. 
C)  transfer payments. 
D)  capital outflow. 
A)  exports. 
B)  imports. 
C)  transfer payments. 
D)  capital outflow.

Question 2

Examples of comparative advantage often begin with two countries that each produce the same two goods.Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost,and specializes in the production of the good for which it has a comparative advantage.How do these examples prove that both nations are made better off as a result of trade than they would be without trade?

Accepted Answer

To show that both countries are better o

Question 3

In 1995,the General Agreement on Tariffs and Trade (GATT),which was established in 1948,was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?

Accepted Answer

A)  The GATT agreement only covered trade in goods. The WTO was created to cover trade in goods, services and intellectual property. 
B)  The charter of the GATT had run out and a new organization was needed to promote international trade. 
C)  The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations. 
D)  By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers. 
A)  The GATT agreement only covered trade in goods. The WTO was created to cover trade in goods, services and intellectual property. 
B)  The charter of the GATT had run out and a new organization was needed to promote international trade. 
C)  The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations. 
D)  By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers.

Domestically produced goods and services sold to other countries are referred to as

In 1995,the General Agreement on Tariffs and Trade (GATT),which was established in 1948,was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Comparative Advantage and the Gains From International Trade

Domestically produced goods and services sold to other countries are referred to as

In 1995,the General Agreement on Tariffs and Trade (GATT),which was established in 1948,was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters