Macro: Chapter 7

Which of the following is a best example of a tariff?

A $150 fee imposed on all imported residental air conditoners

Which of the following is the best example of quota?

A limit on the quantity of residental air conditioners that can be imported from a foreign country

______ is the ability to produce more of a good or service than competitors when using the same amount of resources

Absolute advantage

Which of the following is an example of a trade restriction

Japan places a tax on all korean automobiles

The 1994 agreement that eliminated most tariffs among the United states, Canada, and mexico is known as

NAFTA

Trade restrictions tend to preserve _______ in the protected industries and lead to _______ in other industries

Relatively few jobs; job losses

Table 7-1: Use the table above to select the statement that accurately interprets the data in the table

Rob has a comparative advantage in catching fish

Table 7-1: Use the table above to select the statement that accurately interprets the date in the table

Rob has a greater opportuntiy cost than bill picking berries

Which of the following countries is not one of the top three exporting countries in the world?

South Korea

Which of the following statements about the importance of trade to the US economy is false?

The US economy is highly dependent on international trade for growth in its gross domestic product

The terms of trade refers to

The ratio at which a country can trade its exports for imports from other countries

When sophie, a french citizen, purchases a Dell computer in Paris that was produced in Texas, the purchase is

a US export and an french import

When tesla, a US company, purchases Italian-made pirelli tires for its automobiles, the purchase is

a US import and an Italian export

Over the past several decades there has been rapid growth in international trade. This growth has been due to all except one of the following factors. Which factor has not contributed to the growth of international trade?

a change in the tariffs charged on many goods

Countries gain from specializing in producing goods in which they have _______ and trading for goods in which other countries have _________

a compartive advantage; a comparative advantage

A quota is

a limit placed on the quantity of goods that can be imported into a country

A tax imposed by a government on imports of a good into a country is called

a tariff

A tax imposed by a government on imports of a good intro country is called a

tariff

Trade that is within a country or between countries is based on the principle of

Compartive advantage

International trade

Helps consumers but hurts firms that are less efficient than their foreign competitors

Imports are goods and services bought domestically

but produced in other countries

Domestically produced goods and services sold to other countries are referred to as

exports

Twenty seven countries in Europe have formed the European Union. After the EU was formed it

eliminated all tariffs amoung its member countries

Which of the following statements is false?

Because the cost of labor used on farms is so high, the united states exports very little of its wheat, rice, and corn crops

Table 7-1: Use the table above to select the statement that accurately interprets the data in the table

Bill has a comparative advantage in picking berries

Table 7-1: use the table above select the statement that accurately interprets the data in the table

Bill has an absolute advantage in picking berries and ROb has an absolute advantage in catching fish

The first discussion of comparative advantage appears in a book written by

David ricardo

Autarky is a situation in which a country

Does not trade with other countries

Protection in the form of tariffs create winners and losers. Winners include ______ and losers include _______

Well over half of the jobs; price decreases

When the US Government places a tariff on a product, such as the tariff on tires imported from China, the quantity of the product imported will generally _________ and the price paid by consumers for the product will generally ________

decrease; increase