chap 19
which of the following is a gain from trade
a higher standard of living for all trading countries
a quota is
a limit on the quantity of a good that may be imported
the infant industry argument can be justified because
a new industry may be difficult to start in the face of existing foreign competition
over a given period of time, if exports are greater than imports, the result is
a trade surplus
overall NAFTA has resulted in
accelerated economic growth and reduced inflationary pressures in Canada, Mexico, and the US
consumption possibilities, during a given time period, refer to the
alternative combinations of goods and services that a country can consume
if a country engages in trade with other countries, it is known as
an open economy
to ensure mutually beneficial trade, the terms of trade between two countries should always
be between their respective opportunity costs in production
which of the following countries has the highest export ratio?
belgium
the general agreement on tariffs and trade
committed GATT members to a reduction of protectionism
when a country has a lower opportunity cost in producing a good than any other country
consumption possibilities will increase with specialization and trade
when tariffs are imposed, the losers include
domestic consumers and foreign producers
when quotas are eliminated, losers include
domestic producers
the purpose of the world trade organization is to
enforce the rules of free trade
what should happen to the equilibrium price and quantity in a market as a result of a quota on imports
equilibrium price should go up, and equilibrium quantity should go down
what should happen to the equilibrium price and quantity in a market as a result of a tariff on imports
equilibrium price should go up, and equilibrium quantity should go down
dumping is said to occur when
foreign producers sell their goods abroad at prices lower than those prevailing in their own countries
a country with a comparative advantage in producing computer chips
has a lower opportunity cost of producing computer chips than its trading partners
comparative advantage in production is achieved by
having a lower opportunity cost of producing a good relative to that of other countries
when a country imposes tariffs, it is likely to cause
higher prices for the import-competiting goods
goods and services purchased from international sources are
imports
increased opportunities for trade increase production by
improving efficiency through specialization
a country has a comparative advantage in a good if
it can produce a good at a lower opportunity cost relative to another country
based on export ratios, which of the following countries is closest to being a closed economy
myanmar
from a consumer's viewpoint, which of the following policies would be least desirable
no trade
the US exports more than it imports
only in services
if we add together all the gains from specialization and trade and then subtract all the losses, the net result would be
positive; a net gain for the world and each country
quotas are a greater threat to competition than tariffs because
quotas preclude additional imports at any price
the elimination of import restrictions will
redistribute income from import-competing industries to export industries
trade restrictions
reduce the gains from trade for the country as a whole
which of the following statements about US trade is true
the US typically has a substantial trade surplus in services
after joining the european union, which of the following has not occurred for member nations
the dumping of products
with regard to international trade
the market mechanism determines the terms of trade
if US quotas on imported sugar were eliminated
the supply of sugar in the US would shift to the right and sugar prices would fall
a country will not trade unless
the terms of trade are superior to domestic opportunities
two countries with differing comparative advantage may engage in trade because
they will be able to consume more goods in total due to specialization and trade
