Exam 7: Comparative Advantage and the Gains From International Trade

A tax imposed by a government on imports of a good into a country is called a

Domestically produced goods and services sold to other countries are referred to as

In the 1930s the United States charged an average tariff rate

Economists believe the most persuasive argument for protectionism is to

Table 7-2 Madison and Austin own Cafe Ole'.Table 7-2 lists the number of empanadas and tacos Madison and Austin can each make in one hour. -Refer to Table 7-2.Select the statement that accurately interprets the data in the table.

Table 7-6 Production and Consumption Production Without Trade With Trade Estonia and Morocco can produce both swords and belts.Table 7-6 shows 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?

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.Without the tariff in place,the United States produces

The textbook referred 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?

Table 7-6 Production and Consumption Production Without Trade With Trade Estonia and Morocco can produce both swords and belts.Table 7-6 shows the production and consumption quantities without trade,and the production numbers with trade. -Refer to Table 7-6.With trade,what is the total gain in belt production?

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.We can conclude that

Table 7-4 Output Per Hour of Work Table 7-4 shows the output per hour of work for light bulbs and flash drives in Mexico and in Canada. -Refer to Table 7-4.Fill in the following table with the opportunity costs of producing light bulbs and flash drives for Mexico and Canada.

Imports are goods and services bought domestically but produced in other countries.

If Finland has an absolute advantage in the production of two goods compared to Latvia,Finland can still benefit from trade with Latvia.

Table 7-6 Production and Consumption Production Without Trade With Trade Estonia and Morocco can produce both swords and belts.Table 7-6 shows 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 swords?

Table 7-1 Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where they had to find and make their own food.Rob and Bill spent one day each fishing and picking berries.The table lists the pounds of output Rob and Bill produced. -Refer to Table 7-1.Use the table above to select the statement that accurately interprets the data in the table.

What are terms of trade?

Although the United States is the second largest exporting country,international trade is less important to the U.S.than it is to most other countries.

The first example of comparative advantage appeared in a book that was published in 1817.This example showed that mutually beneficial trade between two countries (England and Portugal)was possible.The example assumed that two goods (wine and cloth)could be produced by both countries.Which of the following describes the conclusion of this example?

A tariff is a tax imposed by a government on imports.

One of the main sources of comparative advantage is natural resources.