Exam 9: Comparative Advantage and the Gains From International Trade

In 2013,________ of Goodyear's sales were outside North America.

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.What is the area of domestic producer surplus without a quota?

________ is the ability of an individual,a firm,or a country to produce a good or service at a lower opportunity cost than competitors.

Selling a product at a price below its cost is known as dumping.

Measuring the impact of a quota or tariff on the U.S.economy is an example of ________.Stating that a quota or tariff should be eliminated is an example of ________.

Absolute advantage is

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

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Following the tariff imposed on Chinese tires,some businesspeople correctly argued that the U.S.tariff would result in

Examples of ________ show how trade between two countries can make each better off.

In 2012,the largest exporter in the world was

The United States has developed a comparative advantage in film production due to the film industry being long-established in southern California,and lower costs result from the size of the industry in the area.This source of comparative advantage is referred to as

A consequence of increasing marginal costs of producing digital music players in Japan is

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.Without the tariff in place,the United States consumes

Table 9-3 Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. -Refer to Table 9-3.Select the statement that accurately interprets the data in the table.

Countries that engage in trade will tend to specialize in the production of goods and services in which they have ________ and will ________ these goods and services.

If a country has an absolute advantage in producing a product,it must also have a comparative advantage in producing that product.

Which of the following is not a source of comparative advantage?

Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

a.What is the World Trade Organization? b.When was it established? c.How many countries are members of the World Trade Organization?