Exam 32: Comparative Advantage and the Open Economy

When economists David Gould, G.L. Woodbridge, and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment, they concluded that

Why do free trade proponents applaud successful trade deflection?

Goods that are produced in other countries and then sold domestically are called

The selling of a good or service abroad at a price below production costs is

The successor to GATT in 1995 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, the opportunity cost of producing a pound of beef in France is

If Bob can produce completed mathematics homework assignments at a lower opportunity cost than Jane can accomplish, then Bob has ________ in completing mathematics homework assignments.

When the principle of comparative advantage determines trade, then a country will

The WTO

Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called

Selling a good abroad below the price charged in the home market is

The WTO replaced the GATT in

A tariff is

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

Restrictions on imports

If there are two goods and two countries, then one country can have

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can produce a maximum of eight pies or two cakes in a day. Ethel has an comparative advantage in the production of

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

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 -Refer to the above table. If opportunity costs are constant, then the United States and Mexico will produce goods in which they have a comparative advantage and trade at a rate of exchange of

The organization that settles trade disputes between countries is the