Exam 32: Comparative Advantage and the Open Economy

Consider a world of two countries facing opportunity costs and producing only wheat and cloth. In one hour, residents of Country A can produce a maximum of either 1 unit of wheat or 0.5 unit of cloth, whereas residents of Country B can produce a maximum of either 0.3 unit of wheat or 0.4 unit of cloth. Country B should export

A government-imposed restriction on the quantity of a good that can be imported is

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

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons) 30 60 Beef (pounds) 10 30 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is

A legal limit on the amount of sugar imported into the United States is

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 3 Bicycles 2 6 -Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?

In the long run, imports are paid for by

According to the text, approximately how many countries are members of the WTO?

The Number of Worker Days to Produce One Cuckoo Clock or Movie Using All Available Resources U.S. Switzerland Product (Worker-Days) (Worker-Days) Cuckoo Clocks 8 6 Movies 12 4 -Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________.

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons) 30 60 Beef (pounds) 10 30 -Use the above table. Assuming constant opportunity costs, a comparative advantage in producing beef is possessed by

Which of the reasons given for tariff protection make consumers better off by generating lower prices?

Since 1950, the balance of trade for United States has

What are the effects of a tariff on a good?

What is GATT and what happened to tariff rates as a result of GATT?

The concept of "global competitiveness"

Trade diversion results in

The World Trade Organization

Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is

A tariff is a tax on

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