Exam 32: Comparative Advantage and the Open Economy

The argument that a tariff has to be imposed in order to protect any industry just getting started until it gets large enough to be competitive internationally is the

Dumping occurs when, in a foreign market, a good is sold

Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock.

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can either produce a maximum of eight pies or two cakes in a day. Ethel's opportunity cost to produce one cake is

If it costs a firm $10 to produce a good and the same good sells for $7 abroad, then this firm is engaging in

Governments sometimes subsidize domestic industries. When this occurs

Which of the following is NOT a benefit of international trade?

Which of the following is the situation in which a nation shifts its international trade from nations outside a regional trade bloc to nations within the bloc?

Which of the following is counted as a benefit from international trade?

An assumption behind the infant industry argument for tariff protection is that

Suppose that opportunity costs are constant in both France and Germany. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine. In Germany, maximum feasible hourly production levels are either 4 units of wheat or 10 units of wine. It is correct to state that

The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started is

Since World War II, world trade has

Trade restrictions tend to make domestic products

Dumping is

In the long run, imports will most likely be paid for with

According to the text, 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 found that

-Using the data in the above table, and assuming constant opportunity costs, it is likely that

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

When a tariff is imposed, the demand curve for the domestic good