Trade
Imports/Exports
Specialization
100
Regan grows flowers and makes ceramic vases, Jayson also grows flowers and makes vases, but Regan is better at producing both. In this case, trade could
What is benefit both Regan and Jayson
100
A good that is produced abroad and sold domestically is called
What is an import
100
Specialization and trade are closely linked to
What is comparative advantage
200
A country's consumption possibilities frontier can be outside its production possibilities frontier if
What is the country engages in trade
200
By definition, exports are
What is goods produced domestically and sold abroad
200
Total output in an economy increases when each person specializes because
What is each person spends more time producing that product in which he or she has a comparative advantage
300
A country that currently does not trade with other countries could benefit by
What is not restricting trade
300
By definition, imports are
What is goods produced abroad and sold domestically
300
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
What is all of the above are correct
400
Trade can make everybody better off because it
What is allows people to specialize according to comparative advantage
400
People generally choose to depend upon others for goods and services. Economists view this interdependence as
What is a good thing, since it allows people to consume more goods and services than they would otherwise be able to consume
400
Which of the following would not result from all countries specializing according to the principle of comparative advantage?
What is each country's production possibilities frontier will shift outward
500
Ben bakes bread and Shawna knits sweaters. Ben likes to eat bread and wear sweaters, and the same is true for Shawna. In which of the following cases is it impossible for both Ben and Shawna to benefit from trade?
What is none of the above are correct
500
Free point!
What is +1
500
Free point!
What is +1
M
e
n
u