Exam 32: Comparative Advantage and the Open Economy

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. Assuming constant opportunity costs,

Today, in the United States, imports are over

Maximum Feasible Hourly Production Rates of Either Cuckoo Clocks or Movies Using All Available Resources Product United States Switzerland Cuckoo Clocks 4 2 Movies 10 4 -Refer to the above table. If opportunity costs are constant, residents of the United States will gain from specializing and trading with Switzerland if the

Maximum Feasible Hourly Production Rates (in Tons) of Either Knives or Forks Using All Available Resources Product Country Alpha Country Beta Knives 9 3 Forks 6 12 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing knives in country Alpha is ________, and the opportunity cost of producing knives in country Beta is ________.

A country will specialize in the good for which

A voluntary import expansion involves a

The argument a tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union is

Countries engaged in international trade specialize in production based on

When U.S. residents buy products that were made in Japan, then ultimately the Japanese want

Dumping is

The effects of a tariff are

Why do free trade proponents dislike rules of origin in trade agreements?

When a good is put onto the global market at a price below the cost to produce it, this is known as

When one country "dumps" some of its products in another country, it

The principle of comparative advantage essentially states that

Maximum Feasible Hourly Production Rates for Either Food or Cloth Using All Available Resources -Using the data in the above table, and assuming constant opportunity costs, it is likely that

All of the following are arguments in favor of restricting trade EXCEPT

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

When a tariff is imposed, the supply curve for the imported good

The trend in current tariff laws is to