Exam 17: International Trade

Countries choose to specialize and trade with one another because the gains from trade are greater than the losses.

A limit on the quantity of a good that may be imported in a given time period is a:

As trade restrictions are eliminated,increased imports:

If the United States has a trade deficit with the rest of the world,then the rest of the world must have a trade deficit also.

If a country pursues its comparative advantage:

A HEADLINE article in the text indicates that the U.S.sugar producers favor a quota on imported sugar.Enforcement of a sugar quota will cause the price of sugar to _____ and quantity to ____.

Specialization and trade:

How expensive an imported good is depends on the foreign price of the good and:

Which of the following is the result of a tariff?

If a country has a lower opportunity cost in producing a good than its trading partners,then it has:

As the terms of trade approach the domestic opportunity costs of a product,a country will experience:

Trade restrictions provide:

World output of goods and services increases with specialization because:

Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below. -If the countries are at points A and B in Figure 17.1 and do not trade,what is the total number of motorcycles produced per day?

Specialization and trade means more output throughout the world.

When comparing the ratio of imports or exports to GDP,the United States,relative to other countries,has:

Goods and services sold to foreign sources are known as:

Some U.S.industries are very dependent on sales of goods to other countries.

Which.of the following is used to determine the terms of trade?

Exchange rates are affected by changes in: