Exam 16: Comparative Advantage and the Open Economy

The effects of a tariff are

A rationale used for tariff protection by some is when

Industries that cannot compete with foreign competitors at this point in time,but will be able to once they gain some size and experience describes

Restrictions on imports

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

Suppose that John can produce 80 widgets per hour and can lift 75 kilograms.Robert,on the other hand,can produce 60 widgets per hour and can lift 50 kilograms.It can be concluded that

Of the countries below,the country with the lowest imports-to-GDP ratio is

Voluntary export restraint agreements are

Distinguish between absolute advantage and comparative advantage.

Governments sometimes subsidize domestic industries.When this occurs,

A tax on imported goods is an example of.A tariff is

According to economic historians,one characteristic of international trade is that it

The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition

Why was the WTO,formerly GATT,created?

One economic truism is that any nation's restriction of imports ultimately leads to

During the Great Depression,many industrial countries tried protecting domestic jobs by raising tariffs.Economic theory would suggest that the result would be

"Everybody has a comparative advantage in something." Do you agree or disagree? Why?

Suppose an industry receives protection from the government in the form of tariffs.A number of years later,it is observed that the quantity supplied by domestic firms had decreased and that the domestic price was substantially greater than the world price.We could conclude that

Compare and contrast quotas and tariffs,does "one size fit all"?

A policy that has the effect of reducing the quantity supplied and raising price is said to be a