Benchmark Review - International

Front

The benefit or advantage of an economy to be able to produce a commodity at a lesser opportunity cost than other entities is referred to as

Back

Comparative Advantage

Front

Which country has an absolute advantage in producing Cars? (note that this is an input problem) Options: Country A, it takes them less time to make cars than B.; Country B, it takes them less time to make cars than A.; Country A, it can make 10 cars to Country B's 8.; There is not enough information in the question.

Back

Country B, it takes them less time to make cars than A.

Front

Which of the following statements is true?
Options:
William has an absolute advantage in making both cakes and pies.
William has an absolute advantage in making both goods.
For every 1 cake William makes, he gives up the chance to make 3 pies.
David has an absolute advantage in making pies.

Back

David has an absolute advantage in making pies.

Front

Based on the table, David...

Back

has a comparative advantage in cakes.

Front

When a country exports more than it imports.

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trade surplus

Front

An excess of imports over exports.

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trade deficit

Front

Value of all goods and services exported from a country minus the value of all goods and services imported from outside the country.

Back

balance of trade

Front

A tax on imports

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tariff

Front

A limit to the number of imports that may enter a country

Back

quota

Front

A government order stopping trade with another country

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embargo