Buy American provisions create winners and losers. Winners include ______ and losers include_______
b) firms sheltered from foreign competitions; U.S. consumers and taxpayers
A tax imposed by a government on imports of a good into a country is called
c) a tariff.
Which of the following statements about the importance of trade to the U.S. economy is false?
The U.S. economy is highly dependent on international trade for growth in its gross domestic product.
The 1994 agreement that eliminated most tariffs among the United States, Canada, and Mexico is known as
Trade that is within a country or between countries is based on the principle of
D) Comparative Advantage
Use the table above to select the statement that accurately interprets the data in the table.
C) Rob ahs a greater opportunity cost than Bill for picking berries
The terms of trade refers to
b) The ratio at which a country can trade its exports for imports from other countries
In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except
b) some countries have more resources than other countries.
Which of the following statements is false?
B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall.
Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?
A) Climate and soil conditions in Costa Rica which are well suited for banana production.
Suppose the government allows imports of leather footwear into the United States. What happens to the market price and what I the quantity of imports?
d) the price equals $24 and imports equals q2-q0
Which of the following is the best example of a quota?
b)a limit on the quantity of residential air conditioners that can be imported from a foreign country
Refer to Figure 6-2. The tariff revenue collected by the government equals
B $15 million
The loss in domestic consumer surplus as a result of the tariff is equal to
d) 31.125 million
What is the value of revenue to foreign producers who are granted permission to sell in the U.S. market when there is a quota?
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. All of the following are reasons for these anti-globalization protests except...
d) protesters object to the loss of intellectual property (such as software programs and movies) that results from foreign trade and investment.
Protectionism is the use of ________ to protect domestic firms from foreign competition.
b) trade barriers
Dumping refers to
B) selling a product for a price below its cost of production.
Although the United States is the leading exporting country, international trade is less important to the U.S. than it is to most other countries.
If Finland has an absolute advantage in the production of two goods compared to Latvia, Finland can still benefit from trade with Latvia.
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