Exam 32: Comparative Advantage and the Open Economy

The organization that settles trade disputes between countries is the

Why do free trade proponents applaud successful trade deflection?

All of the following are arguments in favor of restricting trade EXCEPT

The WTO replaced the GATT in

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

Trade diversion results in

The United States is considered by the Institute for Management Development to be the most competitive economy because

How can comparative advantage yield gains from trade?

Trade restrictions tend to make domestic products

Suppose that the opportunity cost of producing goods differs between two nations.We can correctly state that

In general,who will benefit as the result of a tariff? I.Domestic producers II.Domestic consumers III.The domestic government

A tariff is

Which of the following is the situation in which firms outside a trade bloc shift the final assembling process of partially assembled products into a member nation of the bloc and then export the finished products to other nations within the bloc?

If a country voluntarily agrees to have its companies import more goods from another country,the country has

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

Comparative advantage is defined as

In order to obtain an efficient allocation of resources worldwide

In an hour Jane can solder 50 connections or inspect 20 parts while Jim can solder 25 connections or inspect 20 parts in an hour.

Suppose a new EU member begins substituting its imports from non-EU members to other EU members.This is an example of

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