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absolute advanta… Show more Question 1 One argument agains

absolute advanta… Show more Question 1 One argument against free trade is the Question 1 options: absolute advantage argument. comparative advantage argument. considerate advantage argument. infant industry argument. Question 2 All of the following are arguments against free trade EXCEPT Question 2 options: the infant industry argument. comparative advantage. the need to protect American jobs. dumping. Question 3 When Americans buy products that were made in Japan, then ultimately the Japanese want Question 3 options: dollars. goods, including American-made goods. Japanese goods. yen. Question 4 An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the Question 4 options: North American Free Trade Agreement. European Union. World Trade Organization. General Agreement on Tariffs and Trade. Question 5 A government-imposed restriction on the quantity of a specific good that another country is allowed to sell in the U.S. is Question 5 options: a voluntary import expansion. a voluntary restraint agreement. the quota system. a regional trade bloc. Question 6 Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 Refer to the above table. It may be concluded that Question 6 options: The United States has a comparative advantage in producing both goods. Mexico has a comparative advantage in bicycle production. Mexico has a comparative advantage in computer production. The United States has a comparative advantage in producing neither good. Question 7 The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started is Question 7 options: a basic argument for free trade. dumping. a voluntary restraint agreement. the infant industry argument. Question 8 Voluntary restraint agreements are Question 8 options: a type of tariff in which the tax is a fixed amount per unit of good imported. a type of quota that actually benefits the firms facing the restrictions. a type of tariff in which the tax is based on the value of the good. a type of quota agreed to “voluntarily” in order to prevent more severe protection of another type. Question 9 Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a computer in the United States is ________ while the opportunity cost of producing a computer in Mexico is ________. Question 9 options: 0.8 bicycle; 2 computers 2 bicycles; 5 bicycles 2.5 computers; 0.25 bicycle 0.5 bicycle; 0.2 bicycle Question 10 The effect of an import quota is Question 10 options: to make the supply curve horizontal at the amount of the quota. to lead to a decrease in demand. to make the supply curve vertical at the amount of the quota. to shift the supply curve up by the amount of the quota. • Show less

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