Exam 34: International Trade and Comparative Advantage

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__________ is a payment by the government to exporters to permit them to reduce the selling prices of their goods so they can compete more effectively in foreign markets.

(Multiple Choice)

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Question 21

If a country produces a commodity in the range of decreasing returns to scale, and the country begins to export more in a pure free trade system, the domestic price of the commodity will

(Multiple Choice)

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Question 22

The infant-industry argument for trade protection holds that new industries need to be protected from foreign competition until they develop and flourish.

(True/False)

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Question 23

Many countries impose tariffs or quotas to protect the domestic industry from competition.

(True/False)

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Question 24

Comparative advantage is a comparison among producers based on opportunity cost.

(True/False)

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Question 25

Political factors influence international trade because

(Multiple Choice)

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Question 26

Which of the following statements regarding the cheap foreign labor argument is correct?

(Multiple Choice)

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Question 27

A quota brings a more serious misallocation of resources than a tariff.

(True/False)

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Question 28

If a nation can produce greater quantities of a good than another nation, it has a(n)

(Multiple Choice)

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Question 29

According to the ____ view, a nation's wealth consists of the amount of gold or other monies at its command.

(Multiple Choice)

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Question 30

The effect of a tariff or a quota is to

(Multiple Choice)

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Question 31

Figure 34-5 -From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

(Multiple Choice)

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Question 32

Absolute advantage is the ability to produce a good using fewer inputs than another producer.

(True/False)

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Question 33

If a nation has "cheap labor,"

(Multiple Choice)

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Question 34

The supply-demand mechanism will bring an international market into equilibrium

(Multiple Choice)

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Question 35

If England uses one week's time to produce 10 yards of cloth or 2 barrels of wine and Portugal uses one week's time to produce 12 yards of cloth or 6 barrels of wine, then England has a comparative advantage in the production of cloth.

(True/False)

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Question 36

Specialization means that a country devotes its energy and resources to only a small proportion of the world's productive activities.

(True/False)

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Question 37

Figure 34-1 -In Figure 34-1,

(Multiple Choice)

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Question 38

A tariff is a tax on imports.

(True/False)

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Question 39

Figure 34-8 -Figure 34-8 has four sets of production possibility curves for two hypothetical countries.In which case will there be no advantage to trade between the two countries?

(Multiple Choice)

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Question 40

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Exam 34: International Trade and Comparative Advantage

__________ is a payment by the government to exporters to permit them to reduce the selling prices of their goods so they can compete more effectively in foreign markets.

If a country produces a commodity in the range of decreasing returns to scale, and the country begins to export more in a pure free trade system, the domestic price of the commodity will

The infant-industry argument for trade protection holds that new industries need to be protected from foreign competition until they develop and flourish.

Many countries impose tariffs or quotas to protect the domestic industry from competition.

Comparative advantage is a comparison among producers based on opportunity cost.

Political factors influence international trade because

Which of the following statements regarding the cheap foreign labor argument is correct?

A quota brings a more serious misallocation of resources than a tariff.

If a nation can produce greater quantities of a good than another nation, it has a(n)

According to the ____ view, a nation's wealth consists of the amount of gold or other monies at its command.

The effect of a tariff or a quota is to

Figure 34-5 ​ -From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Absolute advantage is the ability to produce a good using fewer inputs than another producer.

If a nation has "cheap labor,"

The supply-demand mechanism will bring an international market into equilibrium

If England uses one week's time to produce 10 yards of cloth or 2 barrels of wine and Portugal uses one week's time to produce 12 yards of cloth or 6 barrels of wine, then England has a comparative advantage in the production of cloth.

Specialization means that a country devotes its energy and resources to only a small proportion of the world's productive activities.

Figure 34-1 ​ -In Figure 34-1,

A tariff is a tax on imports.

Figure 34-8 ​ -Figure 34-8 has four sets of production possibility curves for two hypothetical countries.In which case will there be no advantage to trade between the two countries?

What Is Economics

The Economony: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Useconomy

Filters

Figure 34-5 -From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Figure 34-1 -In Figure 34-1,

Figure 34-8 -Figure 34-8 has four sets of production possibility curves for two hypothetical countries.In which case will there be no advantage to trade between the two countries?