Exam 18: Comparative Advantage and the Open Economy

-According to economic historians, one result of international trade is that it

A quota is

When economists David Gould, G.L. Woodbridge, and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment, they concluded that

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

One way to reduce exports is to

Which of the following is the situation in which firms outside a trade bloc shift the final assembling process of partially assembled products into a member nation of the bloc and then export the finished products to other nations within the bloc?

The argument that a tariff has to be imposed in order to protect any industry just getting started until it gets large enough to be competitive internationally is the

The highest tariff rates of the twentieth century in the United States arose as a result of which law?

The trend in current tariff laws is to

The net effect of regional trade agreements has been

A tariff is a

Restrictions on imports

What must a government know for the infant industry argument to be a valid reason for imposing tariffs?

If country A exports good X to country B and country B exports good Y to country A, it is most likely that

One problem with the infant industry argument is that

-Use the above table. Assuming constant opportunity costs, a comparative advantage in producing beef is possessed by

An international agreement from 1947 designed to lower tariffs was

The infant industry argument suggests that

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

Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?