Unit 4: Comparative Advantage/Trade Barriers

When determining comparative advantage one must determine 

• Opportunity cost
• Specialization
• Absolute Advantage
• Embargos 

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

This trade barrier limits the number of products that can be brought into a country.

• Tariff
• Quota
• Embargo
• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• tariff
• quota
• subsidy
• embargo

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

• tariff
• quota
• subsidy
• embargo

If nations limit trade in of clothing who will benefit?

• Domestic Consumers of clothing
• Domestic producers of clothing
• Foreign Producers of clothing 
• department stores who sell clothing

Tariffs and Quotas can benefit nations imposing them by...

• Raising revenue
• increasing variety of goods
• lowering prices
• increasing consumption 

Infant industries can be helped in the world market by giving those industries a 

• subsidy
• quota
• embargo
• tariff

The policy of imposing duties or quotas on imports in order to protect home industries from overseas competition.

• free trade
• protectionism
• balance of trade

The lowering or elimination of protective tariffs and other trade barriers between two or more nations.

• free trade
• protectionism
• balance of trade