(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