What is comparative advantage

When a country produces at lower opportunity cost

What is opportunity cost?

Next best alternatve given up when making decisions

What is absolute advantage?

When a country can produce products with less resources

Which of the following is not an argument against international trade?

International trade makes consumers worse off

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International Trade

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Questions 15

Answers

1
The opposite of free trade is?
Protectionism
Comparative trade
Absolute trade
2
If an object is made in the UK and sold to China, then what would China call it?
Tariff
Import
Export
GDP
3
As price increases, quantity decreases; and vice versa
Law of Supply
Law of Inversion
Law of Demand
Law of Correlation
4
The coalition of nations that makes rules governing international trade is the?
United Nations
North American Free Trade Agreement (NAFTA)
World Trade Organisation (WTO)
European Union (EU)
5
A tariff is?
Price ceiling on domestic goods
A tax on imports
A tax on exports
A quantity restriction on imports
6
The connection of international political and economic systems is called what?
NAFTA
Globalisation
TPP
Exports
7
What is comparative advantage
When a country produces at a medium opportunity
When a country produces at higher opportunity costs
It's the same as absolute advantage
When a country produces at lower opportunity cost
8
Why should companies export?
They are condemned to disappear otherwise
Their products can always find a market abroad
The world is open to business
Their sales strategy must be global from the outset
9
A positive------- occurs when a nation exports more than its imports
Trade deficit
Trade surplus
Balance of trade
10
In Economics, elasticity simply measures
conductivity
durability
price sensitivity
malleability
11
What is opportunity cost?
Demand changing when price changes
Consumer demand changing for a certain product
Next best alternatve given up when making decisions
Any alternative you gave up when making a decision
12
An import ------ limits the quantity or the monetary value of an imported product
Embargo
Quota
Tax
Tariff
13
What is absolute advantage?
When a country can take the most supplies
a country has no resources
When a country has the least amount of resources
When a country can produce products with less resources
14
Commercial exchange between nations that is without restrictive regulations is known as what?
Comparative trade
Absolute trade
Free trade
15
Which of the following is not an argument against international trade?
International trade makes consumers worse off
International trade costs domestic jobs
International trade increases the demand for child labour
International trade can threaten national security

International Trade Flashcards | StudBud