1
The U.S. minimum wage is . . .
$7.25 per hour
Tariffs are taxes imposed on imported goods.
True or False
True
The United States is a world leader in government laws to protect employees.
True or False
False
In 2007, Mattel recalled nearly two million toys imported from the U.S. due to concerns about high levels of lead in the paint, as well as some loose parts.
True or False
False
Selling internationally traded goods below their cost of production.
Dumping
When nations increase production in their area of ____________________ and trade with each other, both sides can benefit.
Comparative Advantage
About _________ of U.S. trade and ___________ of European trade is intra-industry trade.
Same number for both blanks.
60 percent
When a country can produce more of a good compared to another country.
Absolute Advantage
International trade currently involves about ____________________ worth of goods and services moving around the globe.
$20 Trillion
The membership of the World Trade Organization (WTO) includes about ____________ nations.
150
An economic agreement between countries to allow free trade in goods, services, labor, and financial capital between members while having a common external trade policy.
Common Market
The study of how humans make choices under conditions of scarcity.
Economics
The underlying reason why trade benefits both sides of a trading agreement is rooted in the concept of:
A rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors avaliable at any given time might be referred to as ________________.
Non-Tariff Barrier
Intra-industry trade between similar trading partners allow the gains from _______________________ that arise when firms and workers specialize in the production of a certain product.
2 Things
Learning & Innovation
It is sometimes argued that nation should not depend too heavily on other countries for supplies of certain key products. This argument is commonly known as ____________________________.
National Interest Argument
What are the 3 main forms of protectionism?
Tariffs
Import Quotas
Nontariff Barriers
The acronym GATT stands for:
General Agreement on Tariffs and Trade
What are the 3 regional trading agreements?
European Union
North American Free Trade Agreement (NAFTA)
Asia Pacific Economic Cooperation (APEC)
Alternate Outputs from One Day's Labor Input:
USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles.
The opportunity cost of one bushel of wheat in India is:
4 yds of textiles