Exam 19: Comparative Advantage and the Gains From International Trade

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?

Distinguish between a voluntary export restraint and a quota.

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 is not an example of a trade restriction?

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called _________.

What is a tariff?

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 hats will Denmark gain compared to the 'without trade' numbers?

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

Whenever a buyer and a seller agree to trade,__________.

If the opportunity cost of production for two goods is different between two countries,then __________.

If Japanese workers are more productive than French workers,then trade between Japan and France _________.