micro chapter 21 study quiz
The infant industry argument can be justified because
A new industry may be difficult to start in the face of existing foreign competition
An embargo is
A prohibition on exports or imports
A tax imposed on imported goods is
A tariff
Over a given period of time, if exports are greater than imports, the result is
A trade surplus
The United States imports heavily in all of the following markets except
Aircraft
Consumption possibilities, during a given time period, refer to the
Alternative combinations of goods and services that a country can consume
According to the text, which of the following are both imports and exports for the United States?
Cars, computers, and auto parts
Which of the following is not a reason to restrict trade?
Concern about high prices for consumers
When tariffs are imposed, the losers include
Domestic consumers and foreign producers
Which group is most likely to be adversely affected by the importation of foreign steel?
Domestic steelworkers
In terms of the world as a whole, imports must equal exports because
Every good exported by one country becomes an import for another country
Goods and services sold to foreign buyers are
Exports
A country with a comparative advantage in producing computer chips
Has a lower opportunity cost of producing computer chips than its trading partners
Increased opportunities for trade increase production by
Improving efficiency through specialization
Specialization in production
Increases output
A country has a comparative advantage in a good if
It can produce a good at a lower opportunity cost relative to another country
If trade is mutually beneficial, then increasing trade
Leads to increased output in export industries
Without trade, a country's consumption possibilities are
Limited to its domestic production possibilities
The United States exports more than it imports
Only in services
Protectionism achieves which of the following goals?
Protection of infant industries
Producers of paper products are most likely to be in favor of
Protectionism in the paper product market but free trade in the lumber market
International trade
Redistributes income from import-competing industries to export industries
Increased trade restrictions
Reduce total consumption possibilities
As trade restrictions are eliminated, increased imports
Shift the allocation of resources away from import-competing industries
The expansion of world output as a result of trade is mainly due to the effects of
Specialization according to comparative advantage
Which of the following is true?
The United States has a very low export ratio.
A beggar-thy-neighbor policy is
The imposition of trade barriers to increase domestic employment
A country's export ratio is
The ratio of exports to GDP
If U.S. quotas on imported sugar were eliminated,
The supply of sugar in the United States would shift to the right and sugar prices would fall
World output of goods and services increases with specialization because
The world's resources are being used more efficiently
