Chapter 6 micro

Among the main sources of comparative advantage are the following

Climate and natural resources, relative abundance of labor and capital, technology, external economies

Briefly explain whether you agree or disagree with the following statement " international trade is more important to the U.S economy than to most other economies

Disagree. Exports and imports are a relatively small fraction of the United state GDP

International trade has Always played a role in the u.s economy. Is this role increasing or decreasing ( in terms of exports and imports)

Increasing because government policies facilitate trade

Which of the following is not a main source of comparative advantage

Internal economies of scale

Comparative advantage

Is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

What is meant by a country specializing in the production of a good? Is it typical for countries to be completely specialized?

It shifts resources toward producing only those goods where It has a comparative advantage; no

Comparative advantage

May change as time passes and circumstances change

We do not see complete specialization in the real world because

Not all goods and services are traded internationally, production of most goods involves increasing opportunity cost, and tastes for products differ

Although international trade leads to substantial net benefits, not everyone gains from international trade. Which of the following groups is most likely to lose from trade

The workers and companies in the industries that compete with the imports

What events led to general agreement on tariffs and trade? Why did the world trade organization eventually replace GATT

the Great Depression and the snoot-Hawley tariff, Trade in services and in products incorporating intellectual property grew in importance