Exam 9: Comparative Advantage and the Gains From International Trade

In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except

What is autarky?

A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is

Dumping refers to

A quota is the same as a voluntary export restraint.

Which of the following statements is true?

When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________.

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

A quota is a numerical limit on the quantity of a good that can be imported.

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?

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

The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called absolute advantage.

If Canada has a comparative advantage relative to Mexico in the production of timber, then

The process of countries becoming more open to foreign trade and investment is known as outsourcing.

Table 9-12 Production and Consumption Production Without Trade With Trade Estonia and Morocco can produce both swords and belts. Table 9-12 shows the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?

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

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

Which of the following statements is true?

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic consumers purchase?