Exam 18: Comparative Advantage and the Open Economy

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, which of the following statements is TRUE?

The basic proposition in international trade is that

In comparing tariffs and quotas, we know that

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of

A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a

Today, the share of international trade in U.S. GDP is

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

The two groups that benefit the most from quotas are

Suppose Mexico has a comparative advantage relative to the United States in the manufacture of clothing and the United States has a comparative advantage in producing agricultural products. Which of the following is most likely to occur?

A tariff placed on a foreign good will

-Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a computer in the United States is equal to ________, and the opportunity cost of producing a computer in Mexico is ________.

-Refer to the above table. If opportunity costs are constant, then the United States and Mexico will produce goods in which they have a comparative advantage and trade at a rate of exchange of

The Uruguay round of GATT (1993)talks

If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up