Exam 13: Comparative Advantage and the Gains From International Trade

Table 13.6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 13.6.With trade, what is the total gain in clock production?

In what sector is the largest proportion of world trade?

Examples of ________ show how trade between two countries can make each better off.

Table 13.6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 13.6.Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?

One of the main sources of comparative advantage is internal economies.

One reason a country does not specialise completely in production is that not all goods and services are traded internationally.

If a country has a comparative advantage in producing a product, it may not have an absolute advantage in producing that product.

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria.We can conclude that

Which of the following is true about a tariff?

Why do firms offshore?

Table 13.6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 13.6.The country which has an absolute advantage in producing clocks is

Table 13.6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 13.6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Denmark gain compared to the 'without trade' numbers?

Countries that engage in trade will tend to specialise in the production of goods and services in which they have ________ and will ________ these goods and services.

What is a tariff?

What are domestically produced goods and services sold to other countries?

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.

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

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.

Selling a product at a price below its cost is known as dumping.

Table 13.6 Production and Consumption Production Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 13.6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many clocks will Belize gain compared to the 'without trade' numbers?