(ECON 100) Quiz #18

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

Dumping

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

National security argument

The United States imports t-shirts from Asia. As a result, U.S. consumers pay ________ otherwise and Asian producers receive ________ otherwise.

a lower price than; a higher price than

Who gains from international trade?

both the importing and the exporting nations

The infant-industry argument for protection is based on the idea of ________.

learning-by-doing

A nation has a comparative advantage in a good when it has a ________.

lower opportunity cost of producing the good

After a tariff is imposed on a good, the price of the good ________.

rises

When an import quota is imposed on tomatoes, the price of tomatoes ________ and the quantity bought ________, so domestic consumers ________.

rises; decreases; lose