True or false
In an perfect economy of two goods, a country cannot have the ??? advantage in both goods
false
with trade, the person who benefits more is the person who trades at, or near, the other persons ?? cost
opportunity
what is a state that exists whenever an entity can survive and continue its activities without external assistance or international trade
autarky
------------ are generally found found by comparing changes in consumer and producer surplus
welfare effects
international trade free of government interference
free trade
Comparative advantage is being the relative opportunity cost producer of the good
true
comparative advantage is the foundation for establishing the benefits of ??
trade
the difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the market is not at equilibrium is
dead weight loss
... trade is trade between nations that is free from barriers such as regulations, tariffs, or quotas
free
goods and services purchased from other countries
imports
True or false
one of the major themes in economic is that international trade creates gains
true
when two people ?? in the goods they produce, total production between the two people increases
specialize
any policy that is designed to reduce the competitiveness of foreign producers that wish to sell their good or services in the domestic market is a
barrier to trade
... revenue equals a tariff times the quantity imported.
tariff
Temporary protection of new industries to shield them until they are competitive in world markets. Usually developing countries vs. developed ones.
infant industry argument
True or false
when are tariff is eliminated, we would expect the price to decrease and the quantity traded to increase
true
when using the ?? country model, the world adopts a price for any good, service or resource as the domestic price
small country
the price of a good, service or resource that prevails in the world market is the
world price
one fundamental premise of economics is that......between people can make both parties better off
trade
a situation in which a country does not participate in trade with other countries; ex: North Korea.
autarky
tariff is not the revenue equals a tariff times the quantity imported.
false
what advantage is the foundation of establishing benefits for trade?
comparative
the difference between the ?? price consumers are able and willing to pay for a good or service and the price they actually pay is called consumer surplus
maximum
--------- trade between people in different countries is driven by
comparative advantage
shows how the quantity of a good demanded by domestic consumers depends on the price of that good
domestic demand curve