Exam 13: Comparative Advantage and the Gains From International Trade

Table 13.4 Output Per Hour of Work Table 13.4 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand. -Refer to Table 13.4. a.Which country has an absolute advantage in the production of handbags and jackets? b.Which country has a comparative advantage in the production of handbags? c.Which country has a comparative advantage in the production of jackets?

Which of the following is not an example of a trade restriction?

Over the past several decades there has been a rapid growth in international trade.This growth has been due to all except one of the following factors.Which factor has not contributed to the growth of international trade?

Table 13.3 Bryce and Tina are artisans who produce homemade candles and soap.Table 13.3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 13.3.Select the statement that accurately interprets the data in the table.

Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 13.2.Select the statement that accurately interprets the data in the table.

Table 13.5 Table 13.5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 13.5. a.Which person has an absolute advantage in the production of bows? arrows? b.Which person has a comparative advantage in the production of bows? c.Which person has a comparative advantage in the production of arrows?

Exports are domestically produced goods and services

Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it.

The World Trade Organisation (WTO)promotes foreign trade and investment, or globalisation.In recent years opposition to globalsation has led to violent protests at meetings of the WTO.One reason for these anti-globalisation protests is

Table 13.1 Linda and Sandy own The Preppy Puppy, a dog grooming business.Table 13.1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 13.1.Select the statement that accurately interprets the data in the table.

China has developed a comparative advantage in the production of clothing.The source of this comparative advantage is

The best example of a tariff from the list below is

Anti-globalisation and protectionism are both arguments against free trade.How do these two arguments differ?

Protectionism refers to the use of trade barriers to shield domestic firms from foreign competition.

The simple trade model demonstrates that countries can expand consumption by specialising in the production of goods and services in which they have a comparative advantage.In reality we do not see complete specialisation in production.State three reasons why this is case.

Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 13.2.Select the statement that accurately interprets the data in the table.

Measuring the impact of a quota or tariff on the economy is an example of ________.Stating that a quota or tariff should be eliminated is an example of ________.

Why do domestic firms offshore production processes?

Which of the following statements is true?

What is an 'open economy'?