International Trade

The key to trade is

• Absolute Advantage

• Comparative Advantage

• Quota

• Specialization

If you compare and contrast Absolute Advantage with Comparative Advantage, they both

• limit production

• make a product

• limit imports

• tax imports

If you compare and contrast Absolute Advantage and Comparative Advantage, Absolute Advantage means that a country

• makes a product better than all other countries

• makes a product better than some other countries

• restricts imports

• places a tariff on imports

If you compare and contrast Absolute Advantage with Comparative Advantage, Comparative Advantage means that a country

• makes a product better than all other countries

• makes a product better than some other countries

• restricts imports

• places a tariff on imports

To place a tariff on a product means to

• limit a product

• make a product

• specialize in a product

• tax a product

The purpose of a protective tariff is to

• limit exports

• limit imports

• protect a company or industry

• raise money for the government

The purpose of a revenue tariff is to

• limits exports

• limit imports

• protect a company or industry

• raise money for the government

The US makes more cars than any other country. What type of advantage is that?

• Absolute

• Comparative

• Specialization

• Superior

The US makes wine better than Korea but not as well as France. That type of advantage is that?

• Absolute

• Comparative

• Specialization

• Superior

Although the US makes paperclips better than India, they do not make paperclips better than China. What type of advantage is that?

• Absolute

• Comparative

• S;pecialization

• Superior