Exam 7: Comparative Advantage and the Gains From International Trade

When Tesla,a U.S.company,purchases Italian-made Pirelli tires for its automobiles,the purchase is

What does it mean for a country to have a comparative advantage in producing a product?

Free trade refers to trade between countries

The ratio at which a country can trade its exports for imports from other countries is called comparative advantage.

The textbook refers to the following quotation from a Federal Reserve publication: "Trade is a win-win situation for all countries that participate." But many firms and workers oppose free-trade policies and protests against globalization have become a regular occurrence at meetings of the World Trade Organization.If trade is a "win-win" situation,why is there strong opposition to free trade and globalization?

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods,effectively acting as a quota of zero imports when stimulus money was being spent.The "Buy American" provision would ________ consumer surplus and ________ producer surplus for industries that produced protected products in the United States.

A tariff

Table 7-6 Output per hour Production and Production of work Consumption without Trade with Trade Estonia and Morocco can produce both swords and belts.Each country has a total of 40 available labor hours for the production of swords and belts.Table 7-6 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade. -Refer to Table 7-6.If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded,how many belts will Estonia gain compared to the "without trade" numbers?

Figure 7-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 7-3 illustrates the impact of the quota. -Refer to Figure 7-3.With a quota in place,what is the quantity supplied by domestic producers?

Table 7-6 Output per hour Production and Production of work Consumption without Trade with Trade Estonia and Morocco can produce both swords and belts.Each country has a total of 40 available labor hours for the production of swords and belts.Table 7-6 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade. -Refer to Table 7-6.Which country has a comparative advantage in producing belts?

Which of the following is the best example of a tariff?

An economic principle that explains why people pursue different occupations is

It is difficult to determine if foreign companies are selling their products for prices below their costs of production because

Table 7-6 Output per hour Production and Production of work Consumption without Trade with Trade Estonia and Morocco can produce both swords and belts.Each country has a total of 40 available labor hours for the production of swords and belts.Table 7-6 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade. -Refer to Table 7-6.Which country has an absolute advantage in producing belts?

Which of the following statements is true?

In 2017,President Trump ________ the Trans-Pacific Partnership (TPP),an agreement designed to reduce trade barriers between the United States and 11 other countries.

China has developed a comparative advantage in the production of children's toys.The source of this comparative advantage is

Economists believe the most persuasive argument for protectionism is to

Is the value of U.S.exports typically larger or smaller than the value of U.S.imports?

Figure 7-2 Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff. -Refer to Figure 7-2.As a result of the tariff,domestic producers increase their quantity supplied by