Exam 16: The United States and the Global Economy

A quota is similar to a tariff in that both

Table 16.1 Production Possibilities Tables for Germany and Canada Germany's Production Possibilities Table Canada's Production Possibilities Table -Refer to Table 16.1. Assume that the desired product combinations prior to specialization were alternative B in Germany and alternative B' in Canada. With specialization, what are the gains in output?

Table 16.1 Production Possibilities Tables for Germany and Canada Germany's Production Possibilities Table Canada's Production Possibilities Table -Refer to Table 16.1. According to the principle of comparative advantage,

The U.S. is a major exporter of petroleum and other energy products.

A sudden reduction in import tariffs is most likely to result in short-term unemployment for workers of companies that

Opening up a country to international trade generally results in

A country will gain from specialization and trade, even if it is less efficient in producing all goods, as long as it specializes in those goods that it can produce

Specialization increases productivity for all of the following reasons except

The dominant factor in motivating governments to impose trade restrictions is

When the North American Free Trade Agreement was adopted, it was predicted that labor-intensive, import-competing businesses in the U.S. would likely lose from tariffs that were eliminated on competing imports from Mexico.

Figure 16.1 Import Tariff Levied by Venezuela -Consider Figure 16.1. A tariff would completely eliminate imports of calculators if it equaled

Figure 16.1 Import Tariff Levied by Venezuela -Consider Figure 16.1. With a per-unit tariff of $3, the Venezuelan government collects tariff revenues of

Japan is a major exporter of automobiles, steel, and electronics. Using the theory of comparative advantage, we can credit this to

All sectors of the domestic economy benefit from protectionist trade policies.

For the U.S., the imposition of tariffs on imported autos tends to result in

The main objective of the North American Free Trade Agreement (NAFTA) is

Trade import restrictions tend to harm domestic consumers by increasing the prices, and reducing the availability, of the goods they purchase.

Since it was established in 1995, one of the most important roles of the World Trade Organization (WTO) has been to

The "level playing field argument" refers to an argument against free trade that is based on a desire to protect new and developing industries.

Trade restrictions tend to reduce competition and increase prices for consumers.