Exam 32: Comparative Advantage and the Open Economy

If Kami can produce 40 portable power banks or 30 cellphones during a month's time, while Sally can produce 10 portable power banks or 20 cellphones, then it is correct to state that

The World Trade Organization

Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this

A quota is

If there are two goods and two countries, then one country can have

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 Y?

All of the following are cited as factors in explaining U.S. competitiveness EXCEPT

If in the long run, any government policy that increases exports

The WTO replaced the GATT in

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

Which of the following statements is FALSE?

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly.

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

If Abigail can produce 4 portable power banks or 3 smartphones in a day, while Jacob can produce 1 portable power bank or 2 smart phones, then it is correct to state that

The trend in current tariff laws is to

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

The ability to produce a good or service at a lower opportunity cost than other producers is

The contention that tariffs should be imposed when a foreign government provides financial assistance to its producers is

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

The World Trade Organization is a successor organization to the