Exam 20: International Trade, Comparative Advantage, and Protectionism

If a country's imports are greater than its exports, a country has a trade deficit.

A country with a lot of human capital is likely to have a comparative advantage in highly technical goods.

An example of acquired comparative advantage is that

When countries specialize in producing those goods in which they have ________, they maximize their combined output and allocate their resources more efficiently.

When countries specialize in producing those goods in which they have a comparative advantage, they

Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1 $\quad$$\quad$$\quad$$\quad$$\quad$ $\text {Mexico}$$\quad$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Guatemala}$ Oranges Bananas Oranges Bananas bushel/acre bushel/acre bushel/acre bushel/acre 200 0 50 0 160 40 40 20 120 80 30 40 80 120 20 60 40 160 10 80 0 200 0 100 -Refer to Table 20.1. In Guatemala, the opportunity cost of 1 bushel of bananas is

Which of the following is true?

If the price of a truck in the United States is $18,000, and the exchange rate between the dollar and the Argentine peso falls from 10 pesos to 8 pesos per dollar, then the price of the American truck in Argentina will

Refer to the information provided in Figure 20.5 below to answer the question(s) that follow. Figure 20.5 -Refer to Figure 20.5. The domestic price of oil is $130 per barrel. If the world price of oil is $135 per barrel, this country will

In the mid-1970s, the United States switched from running a trade ________ to running a trade ________.

The Smoot-Hawley tariff increased the average tariff rate to ________ percent.

Refer to the information provided in Figure 20.1 below to answer the question(s) that follow. Figure 20.1 -Refer to Figure 20.1. Canada has ________ advantage in the production of soybeans and ________ advantage in the production of alfalfa.

________ portion of actual world trade patterns results from different factor endowments between countries.

A tariff is

If the exchange rate between the United States and Portugal changes from $1 = 1 euro to $1 = 2 euros, then holding everything else constant, the price of U.S. goods in Portugal will decrease.

If a nation has ________ status conferred on it, then exports from that country are taxed at the lowest negotiated tariff rates.

A tariff on tires benefits domestic producers of tires.

According to the theory of comparative advantage, a country exports goods when it can produce those goods ________ than other countries.

Refer to the information provided in Figure 20.4 below to answer the question(s) that follow. Figure 20.4 -Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, ________ revenue in this country will be $500.

________ allow(s) a country to produce on its production possibility frontier and consume outside it.