Exam 19: Comparative Advantage and the Open Economy

The argument a tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union is

What are the effects of a tariff on a good?

The successor organization to GATT that handles trade disputes among its member nations is the

An official agreement with another country to restrict the quantity of its exports to the U.S.is

During the past 40 years,U.S.exports as a percent of GDP and U.S.imports as a percent of GDP

Since the 1930s,overall tariff rates in the United States have

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

For the United States since 1950,imports as a percentage of GDP has

Maximum Feasible Hourly Production Rates of Either Product A or Product B Using All Available Resources Product Country X Country Y A 4 8 B 4 4 -Refer to the above table.If opportunity costs are constant and both countries produce only the goods for which they have comparative advantages and then trade,hourly world output would equal

The infant industry argument has a normative economic basis because

Maximum Feasible Hourly Production Rates of Either Cuckoo Clocks or Movies Using All Available Resources Product UnitedStates Switzerland CuckooClocks 4 2 Movies 10 4 -Based on the data in the above table,then if opportunity costs are constant,the opportunity cost of producing movies in the United States is ________,and the opportunity cost of producing movies in Switzerland is ________.

Import restrictions due to the imposition of tariffs by the U.S.government

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

Maximum Feasible Hourly Production Rates (in Tons) of Either Pizzas or Donuts Using All Available Resources Product CountryAlpha CountryBeta Pizzas 10 2 Donuts 10 12 -According to the above table,Alpha has comparative advantage in producing

A new industry develops,and our government wants to protect it from foreign competition.Which one of the following arguments would appropriately describe this type of protection?

The ability to produce an item at a lower opportunity cost compared with other producers is known as

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product UnitedStates Mexico Computers 8 10 Bicycles 4 2 -Refer to the above table.Assuming constant opportunity costs,the opportunity cost of producing a bicycle in the United States is ________ while the opportunity cost of producing a bicycle in Mexico is ________.

According to the infant-industry argument,protection should be withdrawn from an infant industry when the companies in the industry

The Uruguay round of GATT (1993)talks

Individual Opportunity Cost Pramilla 2 units of good X to produce 1 unit of good Y Sam 3 units of good X to produce 1 unit of good Y George 4 units of good Y to produce 1 unit of good X Lucas 5 units of good Y to produce 1 unit of good X -Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above.Which person has a comparative advantage in producing good X?