Chapter 24 (my chapter 20)

As it relates to international trade, dumping:

is the practice of selling goods in a foreign market as less than cost

United States exports of goods and services (on a national income account basis) are about:

14 percent of U.S. DGP

What is most likely to have a major effect on the economic growth of industrial economics?

A large change in oil prices

The United States' most important trading partner quantitatively is

Canada

In terms of absolute dollar volume, the top 3 leaders in world exports are:

China, the United States, and Germany

Countries engaged in international trade specialize in production based on:

Comparative advantage

Studies show that:

Costs of trade barriers exceed their benefits, creating an efficiency loss for society

Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect:

Employment to decrease in the U.S.

In 2012, U.S. exports of services_____U.S. imports of services by about_____

Exceeded; $196B

Suppose the domestic price of wheat is $3.50 a bushel in the United States while the world price is $4.00 a bushel. Assuming no transportation costs, the United States will:

Export wheat

Suppose the United states sets a limit on the number of tons of sugar that can be imported each year. This is an example of a

Import quota

Trade between individuals and between nations leads to

Increased specialization

The gain from international trade is: Supply decreases, demand increases

More goods than would be attainable through domestic production alone

If a nation has a comparative advantage in the production of X, the means the nation:

Must give up less of other goods than other nations in producing a unit of X

In the real world, specialization is rarely complete because:

Nations normally experience increasing opportunity costs in producing more of the product in which they are specializing o

An excise tax on an imported good that helps shield domestic producers of the good is called a:

Protective tariff

An excise tax on an imported good that is not produced domestically is called a:

Revenue tariff

When the distribution of resources and technology changes among nations:

The relative efficiency of producing products changes

The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the:

World Trade Organization

Free trade based on comparative advantage is economically beneficial because: a. it promotes an efficient allocation of world resources b.it increases competition c. it provides consumers with a wider range of products d. Of all of these reasons

d. Of all of these reasons