Chapter 12
The United States generally has comparative advantage in the development of technology because it has _____.
a disproportionate share of the world's best research universities.
If a nation can produce a more computers per year than any other nation, that nation has a(n) ______ advantage in the production of computers.
absolute
A tariff is a tax imposed on _____ good.
an imported
An economy that does NOT trade with the rest of the world is a(n) _____.
closed economy
If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ______ in the production of that good.
comparative advantage
In general, individuals and nations should specialize in producing those goods for which they have a(n) _____.
comparative advantage
Protectionism is the view that _____.
free trade is harmful and should be restricted.
The emergence of the English as the de facto world language _____ a comparative advantage in the production of books, movies, and popular music.
has given English-speaking countries
One means of enforcing a quota is to require importers to _____.
obtain a license
An economy that trades with the rest of the world is a(n) _____.
open economy
A legal limit on the quantity of a good that may be imported is called a(n) _____.
quota
The price at which goods or services is traded on international markets is called the _____ price.
world
The world price of a good is determined by _____.
worldwide demand and supply of that good