Exam 16: Comparative Advantage and the Open Economy

That each individual should engage in economic activities in which he or she is relatively most efficient is an application of the concept of

A new industry develops and we want to protect it from foreign competition.Which one of the following arguments would appropriately describe this Type of protection?

The General Agreement on Tariffs and Trade is an international agreement

In the long run,imports will most likely be paid for with

Suppose Mexico has a comparative advantage relative to Canada in clothing manufacturing and Canada has a comparative advantage in producing agricultural products.Which of the following options is most likely to occur?

Given two economic systems,A and B,if economy A must give up less of all other goods to produce widgets than economy B,then

The free trade agreement between the United States,Canada,and Mexico is called the

Suppose the United States and Japan are the only two countries and each can produce two goods--wheat and cars.If the United States has an absolute advantage in wheat and Japan has an absolute advantage in cars,we know that

If protective import-restricting tariffs are imposed by a country,in the vast majority of cases the consumers end up

For the infant-industry argument for tariffs to be appropriate,it is necessary that

In France 1 unit of labour can produce 3 units of wheat or 5 units of wine;in Germany 1 unit of labour can produce 4 units of wheat or 10 units of wine,it is correct to state that

Absolute advantage is defined as

Tariffs to limit imports to "protect Canadian jobs" will also

A government-imposed restriction on the quantity of a specific good that can be imported is an example of

When economists David Gould,G.L.Woodbridge,and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment,they concluded that

For infant-industry tariff protection to be valid requires that

Of the countries below,the one with the highest imports-to-GDP ratio is

Lessening restrictions on imports usually leads to

"International trade bestows benefits on countries through the international transmission of ideas." Do you agree or disagree? Explain.

If a country has an absolute advantage in every good,then