Lesson 5 Quiz over Chapter 33 Flashcards Preview

Macroeconomics Mid-Term Exam 1st Half > Lesson 5 Quiz over Chapter 33 > Flashcards

Flashcards in Lesson 5 Quiz over Chapter 33 Deck (10):
1

Tariffs are taxes that governments place on exported goods for a variety of reasons.
True or False?

False
tariffs are taxes that governments place on imported goods from other countries.

2

Columbia produces coffee with less labor and land than any other country; it therefore necessarily has:

an absolute advantage in coffee production

3

The slope of the production possibility frontier is determined by the __________ of expanding production of one good, measured by how much of the other good would be lost.

opportunity cost

4

What is the current round of World Trade Organization negotiations?

Doha Round.

5

The primary benefits of international trade include:

the more efficient use of world resources and higher standards of living.

6

When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) ______________ in producing that product.

absolute advantage

7

Which of the following concepts provides the basic rational for international trade?

comparative advantage

8

Which of the following countries has recently emerged as one of the world/'s top trading nations in terms of total trade volume?

China

9

The World Trade Organization is committed to lowering barriers to trade.
True or False?

True

10

The idea behind comparative advantage reflects the possibility that one party:

may be able to produce something at a lower opportunity cost than another party.