Exam 19: Comparative Advantage and the Open Economy

The successor organization to GATT,created in 1995,is the

Restricting imports usually leads to

Which of the reasons given for tariff protection make consumers better off by generating lower prices?

If country A exports good X to country B and country B exports good Y to country A,it is most likely that

Today,in the United States,imports are over

The selling of a good or service abroad at a price below what is charged in the home market or below the cost of production is referred to as

Consider a world of two countries producing only wheat and cloth.In one hour,residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth,whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth.Country A should export

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

In the long run,if imports increase,then exports

The WTO replaced the GATT in

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

Protection of a new industry until it becomes strong enough to compete is called

A country will specialize in the good for which

A government-imposed restriction on the quantity of a specific good that another country is allowed to sell in the U.S.is

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

A tariff is a tax on

The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called

The most important international trade organization is

The ability to produce the same quantity of a good or service using fewer units of labor is known as

The infant industry argument suggests that