Exam 32: Comparative Advantage and the Open Economy

One way to reduce exports is to

That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of

Today,the share of international trade in U.S.GDP is

Maximum Feasible Hourly Production Rates for Either Food or Cloth Using All Available Resources -Using the data in the above table,and assuming constant opportunity costs,it is likely that

The two groups that benefit the most from quotas are

According to the Swiss Institute for Management Development,the top country in terms of productive efficiency is

Restricting imports

Protection of new products from global competition is known as

Selling a good abroad below the price charged in the home market is

All of the following are reasons that trade between nations is beneficial EXCEPT

Given two economic systems,A and B,if economy A has a comparative advantage in the production of widgets,then

-Assuming that opportunity costs are constant,which of the following is a correct statement? (See the above table.

The contention that specific sensitive domestic technologies must not be traded freely is

A VRA is an example of

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

A quota is

Governments sometimes subsidize domestic industries.When this occurs,

Quotas and tariffs both serve the purpose of

Assume that U.S.producers can manufacture cookies at a lower opportunity cost than Mexican producers.If this is the case,

A rationale used for tariff protection by some is that