Econ chpt. 3

A country that currently does not trade with other countries could benefit by a. restricting imports and promoting exports. b. promoting imports and restricting exports. c. restricting both imports and exports. d. not restricting trade.

abby bakes brownies and liam grows flowers. In which of the following cases is it impossible for both Abby and Liam to benefit from trade.

Absolute advantage is found by comparing different producers'

An economy's production possibilities frontier is also its consumption possibilities frontier

Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, a. the two countries' combined output of both goods will be higher than it would be in the absence of trade. b. Greece will produce more fish than it would produce in the absence of trade. c. Germany will produce more cars than it would produce in the absence of trade. d. All of the above are correct.

Comparative advantage is related most closely to which of the following? -output per hour -opportunity cost -efficiency -bargaining strength in international trade

Consider two individuals, Howard and Mia, each of whom would like to wear sweaters and eat tasty food. The gains form trade between Howard and Mai are least obvious in which of the following cases?

Economist generally support

Which of the following statements is not correct? a. Trade allows for specialization. b. Trade has the potential to benefit all nations. c. Trade allows nations to consume outside of their production possibilities curves. d. Absolute advantage is the driving force of specialization.

Which of the following would not result from all countries specializing according to the principle of comparative advantage?

Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?

What must be giving up to obtain an item is called

When a country has a comparative advantage in producing a certain good...?

When can two countries gain from trading two goods?

When describing the opportunity cost of two producers, economists use the term

When each person specializes in producing the good for which he or she has a comparative advantage, total production in the economy

When two countries trade with one another, it is most likely because

Which of the following is not an example of the principle that trade can make everyone better off?

Which of the following statements about comparative advantage is not true? a. Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources. b. The principle of comparative advantage applies to countries as well as to individuals. c. Economists use the principle of comparative advantage to emphasize the potential benefits of free trade. d. A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.