Exam 32: Comparative Advantage and the Open Economy

Countries engaged in international trade specialize in production based on

According to the infant-industry argument,protection should be withdrawn from an infant industry when the companies in the industry

The selling of a good or service abroad at a price below production costs is

If protective import-restricting tariffs are imposed by a country,in the majority of cases that nation's consumers end up

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

When one country "dumps" some of its products in another country,it

When a good is put onto the global market at a price below the cost to produce it,this is known as

The highest tariff rates of the twentieth century in the United States arose as a result of which law?

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

Which of the following statements is FALSE?

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 produce a maximum of eight pies or two cakes in a day.Ethel has an comparative advantage in the production of

A tariff is

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 voluntary import expansion involves a

The General Agreement on Tariffs and Trade is an international agreement

When the principle of comparative advantage determines trade,then a country will

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

A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a

The contention that domestic unions tend to want to restrict foreign competition with tariffs is

Why is trade based on comparative advantage?