Column 1
Tariffs n' Quotas
Free Trade and More
Trade
Convoluted Questions
100
The ability of an individual or a country to produce a good at a lower opportunity cost than competitors.
comparative advantage
100
Goods that one country buys from another
imports
100
The U.S. tariff law of the 1930s, which set the highest tariffs in U.S. history. It set off an international trade war and caused the decline in trade that is often considered one of the causes of the worldwide depression of the 1930s.
Smoot Tariff
100
This kind of tariff makes the foreign import more expensive than the American-made product, so Americans are discouraged from buying the foreign things
A PROTECTIVE tariff
100
Free-traders answer THIS argument, by claiming that industries will get used to the protection and will never want to give it up
Infant Industries Argument
200
what's the purpose of revenue tariffs?
to raise $ for the gov't
200
If country A's opportunity cost for producing 1 pound of cashews is 5 pounds of coffee, and Country B's opportunity cost is 1 pound of coffee, which country as a comparative advantage in cashew production?
Country B
200
A young industry that may need temporary protection from competition from the established industries of other countries
An infant industry
200
The Naked Economics author explained that his child's nanny can't take care of his child as well as he can, but her help has allowed him to use his time more productively...so he can write books instead spending all day on childcare. Which economic concept does this describe?
opportunity cost
200
Free Traders claim that protectionism has the unintended consequence of raising prices so high that consumers will abandon the protected industries. Which argument is this related to?
Protecting Domestic Jobs
300
A protective tariff is used to
give less-efficient domestic industries an advantage
300
what happens to price of sugar when there’s more sugar available?
The price decreases
300
productivity causes economic growth and ________ increases productivity
specialization
300
In 1993, Canada, Mexico , and the US agreed to reduce tariffs among themselves...this was called
NAFTA --north american free trade alliance
300
In 1981, US car makers faced competition from cheaper Japanese cars. Instead of lowering their prices, the car makers had Reagan set quotas on Japanese cars What was the result of the quotas?
fewer choices, higher prices will also accept: cars in general became more costly, and consumers had fewer options
400
A limit on the quantity of a product that may be imported
quota
400
When people _________, they produce things they do best and trade those for things other people do best
specialize
400
Tariffs and quotas raise prices and reduce choices for American consumers, but they help protect domestic____
industries or workers
400
Bernie Sanders thinks the museum gift shop should make its trinkets in the USA. Name 2 unintended consequences
Prices of trinkets would go up ----->higher prices might keep customers away ----> gift shop might have to close or lay off employees due to lack of business Also: anything mentioning opportunity cost is acceptable
500
There is corn syrup in your Cola because the USA has a _______ on foreign sugar imports
quota
500
The costs of a quota are dispersed, but the benefits are ___________...so consumers don't complain
concentrated
500
What happens to the price of world sugar if new markets are opened up?
price will increase (because the supply will get smaller once the new markets start consuming)
500
After a tariff on steel was passed, jobs in the steel industry were saved ...but at what cost to the consumer?
$750,000 per steelworker
500
when a country can produce more of a product than another country
absolute advantage
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