Exam 32: Comparative Advantage and the Open Economy

A difference between a quota and a tariff is that

According to the text,approximately how many countries are members of the WTO?

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

-Refer to the above figures.A tariff is placed on a foreign good.Which figures represents the situation in the domestic market for a competing domestic good?

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

One argument against free trade is the

The World Trade Organization

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

U.S.job losses cited by anti-trade critics

Dumping is

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

The WTO

To avoid trade restrictions,a U.S.firm moves its final production process to Ireland and then ships the final products to Germany.This is an example of

One reason that U.S.exports of commercial services have increased steadily over the past 25 years is that

-According to the above table,which assumes that opportunity costs of producing goods X and Y are constant,Holly has comparative advantage in production of

Free trade policies may lead to

If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation,the residents in the first country

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

The concept of "global competitiveness"

Tariffs to limit imports to "protect U.S.jobs" will also