Exam 32: Comparative Advantage and the Open Economy

All of the following are cited as factors in explaining U.S. competitiveness EXCEPT

The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition

The General Agreement on Tariffs and Trade is an international agreement

In the long run, if imports increase, then exports

Governments sometimes subsidize domestic industries. When this occurs,

Voluntary restraint agreements are

The contention that specific sensitive domestic technologies must not be traded freely is

Specialization and international trade lead to

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

The contention that tariffs should be imposed to when a foreign government provides financial assistance its producers is

The argument that with initial protection an industry will eventually become competitive is called the

Protection of a new industry until it becomes strong enough to compete is called

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good X is ________ units of Good Y for Chen and ________ units of Good Y for Holly.

In order to obtain an efficient allocation of resources worldwide

The idea that tariffs should be imposed to protect new and developing industries is referred to as

An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the

According to the Swiss Institute for Management Development, the top country in terms of productive efficiency is

The effect of an import quota is

The net effect of regional trade agreements has been

Protection of new products from global competition is known as