Exam 19: Comparative Advantage and the Gains From International Trade

In what sector is the largest proportion of world trade?

Free trade ________ living standards by ________ economic efficiency.

The process of countries becoming more open to foreign trade and investment and a trend towards a more integrated global system is known as __________.

What are three primary reasons for the growth of international trade over the past 50 years?

Table 19.3 Candles Soap Bryce 150 450 Tina 200 450 Bryce and Tina are artisans who produce homemade candles and soap. Table 19.3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 19.3.Select the statement that accurately interprets the data in the table.

Which of the following describes the infant industry argument for protectionism?

Table 19.6 Production and Consumption Production Without Trade with Trade Clerks Hats Clerks Hats Denmark 900 150 1200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19.6.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded,how many clocks will Denmark consume?

Between 1960 and 2010,Australia's imports increased from approximately _________.

What do economists call trade between countries that is without restrictions?

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

What is a tax imposed by a government on imports of a good into a country?

The selling of a product for a price below its cost of production is called _________.

What is autarky?

Table 19.6 Production and Consumption Production Without Trade with Trade Clerks Hats Clerks Hats Denmark 900 150 1200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19.6.With trade,what is the total gain in clock production?

A tariff is a tax imposed by a government on its own exports.

Table 19.6 Production and Consumption Production Without Trade with Trade Clerks Hats Clerks Hats Denmark 900 150 1200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19.6.All of the following are terms of trade that could possibly benefit both countries except _________.

Table 19.6 Production and Consumption Production Without Trade with Trade Clerks Hats Clerks Hats Denmark 900 150 1200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19.6.Prior to trade,what was the opportunity cost to produce one hat in Belize?

Table 19.6 Production and Consumption Production Without Trade with Trade Clerks Hats Clerks Hats Denmark 900 150 1200 0 Belize 150 100 0 400 Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 19.6.The country which has an absolute advantage in producing clocks is _________.

Table 19.2 Pies Cakes Sarita 15 25 Gabriel 12 16 Sarita and Gabriel own S&G Bakery. Table 19.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day. -Refer to Table 19.2.Select the statement that accurately interprets the data in the table.

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.