ECON Exam 5-20

Differences in production efficiencies among nations in producing a particular good result from

All of these

Which is an example of a non-tariff barrier (NTB)?

Box-by-box inspection requirements for imported fruit

Countries engaged in international trade specialize in production based on

Comparative advantage

In order for mutually beneficial trade to occur between two otherwise isolated nations

Each nation must be able to produce at least one good relatively cheaper than the other

Other things equal- economists would prefer

Free trade to tariffs and tariffs to import quotas

NAFTA

Has reduced most trade barriers between Canada- Mexico- and the United States

Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)

Import quota

A protective tariff will

Increase the price and sales of domestic producers

As it relates to international trade- dumping

Is the practice of selling goods in a foreign market at less than cost

Excise taxes on imported goods that help shield domestic producers of the good are called

Protective tariffs

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

Revenue tariff

"Off-shoring" refers to

Shifting work overseas that was previously done domestically

Other things equal- a tariff is

Superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury

Which of the following arguments contends that certain industries need to be protected in the interest of national security?

The military self-sufficiency argument

The World Trade Organization

Was established to resolve disputes arising under world trade rules