Exam 32: Comparative Advantage and the Open Economy

-According to the above table,which assumes that opportunity costs of producing goods X and Y are constant,the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly.

A quota is

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

Goods that are produced in other countries and then sold domestically are called

The infant industry argument suggests that

Suppose that opportunity costs in India and Australia are constant.In India,maximum feasible hourly production rates are either 0.3 unit of cloth or 0.2 unit of food.In Australia,maximum feasible hourly production rates are either 0.5 unit of cloth or 0.5 unit of food.It is correct to state that

Comparative advantage is the ability,compared with another producer,

Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above.Which person has a comparative advantage in producing good X?

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.Fred has an comparative advantage in the production of

Using trade restrictions to protect special interests such as the U.S.auto industry

Suppose Ethan and Ava work in a farm that grows apples and oranges of the same size.In one hour,Ethan can pick 8 pounds of apples or 1 pound of oranges.Ava can pick 6 pounds of apples or 1 pound of oranges.It can be concluded that

The Uruguay round of GATT (1993)talks

Since 1950,the volume of world trade and the volume of world real GDP

The ability to produce a good at lower opportunity costs than another producer is known as

In the long run,imports are paid for by

The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition

The contention that tariffs should be imposed to when a foreign government provides financial assistance its producers is

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.Fred's opportunity cost to produce one cake is

The successor organization to GATT,created in 1995,is the

When 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 concluded that