Question : 19.2   The Economic Basis for Trade: Comparative Advantage 1) The purpose : 1381267

 

19.2   The Economic Basis for Trade: Comparative Advantage

 

1) The purpose of the Corn Laws was to

A) encourage imports and discourage exports, and thus keep the price of food low.

B) encourage both exports and imports in order to integrate the British economy with the rest of Europe.

C) discourage both imports and exports in order to promote economic self-sufficiency in Britain.

D) discourage imports and encourage exports, and thus keep the price of food high.

 

2) The theory of comparative advantage is credited to

A) Adam Smith.

B) David Ricardo.

C) John Maynard Keynes.

D) Milton Friedman.

3) Country A would have an absolute advantage compared to Country B in the production of corn if

A) corn can be produced at lower cost in terms of other goods than it could be in Country B.

B) Country A uses fewer resources to produce corn than Country B does.

C) the demand for corn is higher in Country A than in Country B.

D) corn sells for a higher price in Country A than in Country B.

 

4) The advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that product than the other country does is

A) an absolute advantage.

B) a comparative advantage.

C) a relative advantage.

D) a productive advantage.

 

5) According to the theory of comparative advantage, a country

A) exports the goods in which its has a comparative advantage.

B) imposes tariffs on goods in which it does not have comparative advantage.

C) imports the goods in which it has a comparative advantage.

D) exports goods in which it has absolute advantage.

 

6) China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario

A) Japan should import both radios and textiles.

B) China should export both radios and textiles.

C) China should export textiles and import radios.

D) Japan should export textiles and import radios.

7) Country A has a comparative advantage compared to Country B in the production of shoes, if

A) Country A can produce shoes at a lower monetary cost than Country B can.

B) Country A can produce shoes using fewer resources than Country B can.

C) the demand for shoes is higher in Country A than in Country B.

D) Country A can produce shoes at a lower cost in terms of other goods than Country B can.

 

8) According to the theory of comparative advantage, a country should

A) specialize and export goods with the highest opportunity cost.

B) specialize and export goods with the lowest production cost.

C) specialize and export goods with the lowest opportunity cost.

D) specialize and export goods with the lowest average cost.

 

9) When one country can produce a product at a lower cost in terms of other goods, that country is said to have

A) an absolute advantage.

B) a comparative advantage.

C) a productive advantage.

D) an unfair advantage.

 

10) The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that

A) the opportunity cost of producing televisions in Japan is higher than that in the United States.

B) the opportunity cost of producing computer chips in the United States is higher than that in Japan.

C) the United States has comparative advantage in producing computer chips.

D) the United States has comparative advantage in producing televisions.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more