Exam 32: Comparative Advantage and the Open Economy

Which of the following is the situation in which a nation shifts its international trade from nations outside a regional trade bloc to nations within the bloc?

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

A significant advantage to being a member of a trade bloc is

The maximum amount of a good that may be imported during a specified period of time is

"International trade bestows benefits on countries through the international transmission of ideas." Do you agree or disagree? Explain.

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

Dumping is

An official agreement with another country in which it agrees to import more from the United States is

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 and both countries produce only the goods for which they have comparative advantages and then trade, hourly world output would equal

The standard of living in a nation depends on

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 -Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________.

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

The ability to produce the same quantity of a good or service using fewer units of labor is known as

For the infant-industry argument for tariffs to be appropriate, it is necessary that

Suppose Ethan and Ava work in a farm that grows apples and oranges of the same size. In one hour, Ethan can pick 8 pounds of apples or 1 pound of oranges. Ava can pick 6 pounds of apples or 1 pound of oranges. It can be concluded that

If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT

To avoid tariffs, a Japanese firm moves its final assembly line to Mexico and then ships the final products to Canada. This is an example of

A tariff is

Which of the following would increase the total amount of trade in the world?

If Abigail can produce 4 tablets or 3 radios in a day, while Jacob can produce 1 tablet or 2 radios, then it is correct to state that