Exam 32: Comparative Advantage and the Open Economy

The World Trade Organization is a successor organization to the

A tariff placed on a foreign good will

Maximum Feasible Hourly Production Rates (in Tons) of Either Cookies or Coffee Using All Available Resources Product Country Alpha Country Beta Cookies 3 8 Coffee 9 4 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________.

Individual Opportunity Cost Pramilla 2 units of good X to produce 1 unit of good Y Sam 3 units of good X to produce 1 unit of good Y George 4 units of good Y to produce 1 unit of good X Lucas 5 units of good Y to produce 1 unit of good X -Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good Y?

When nations specialize according to their comparative advantage

To avoid trade restrictions, a U.S. firm moves its final production process to Ireland and then ships the final products to Germany. This is an example of

Maximum Feasible Hourly Production Rates (in Tons) of Either Cookies or Coffee Using All Available Resources Product Country Alpha Country Beta Cookies 3 8 Coffee 9 4 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________.

Restricting imports usually leads to

A problem with the infant industry argument is that

The law that created the high level of tariffs in United States in the 1930s is

The successor organization to GATT that handles trade disputes among its member nations is the

An import quota will make the supply curve for the imported good

In 1990, there were 50 bilateral agreements and regional trade agreements between countries. Today there are

Maximum Feasible Hourly Production Rates of Either Product A or Product B Using All Available Resources Product Country X Country Y A 4 8 B 4 4 -Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries,

The ability to produce a good or service at a lower opportunity cost than other producers is

Dumping is defined as

If Kami can produce 40 tablets or 30 radios during a month's time, while Sally can produce 10 tablets or 20 radios, then it is correct to state that

Country A can product 100 units of Good X in a day and 40 units of Good Y while Country B can produce 50 units of Good X and 40 units of Good Y.

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

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