International Trade Review

A nation can have an absolute advantage without having a comparative advantage in production.

• True

• False

Which is NOT an example of a trade barrier?

• Tariff

• NAFTA

• Embargo

• Quota

Which is NOT a benefit to open trade?

• lower prices

• more consumer choice

• increased tariffs

• more markets for business

What is the key to trade?

• Self-Sufficiency

• Specialization

• Technology

• Wealth

When a producer can produce a larger quantity of a given good/service than another producer, they can be said to have an...

• Comparative Advantage

• Advanced State of Economics

• Absolute Advantage

• Arkadelphia Pocket-rocket

When one producer has lower opportunity costs than another, they can be said to have a...

• Comparative Advantage

• Advanced State of Economics

• Absolute Advantage

• Arkadelphia Pocket-rocket

When determining comparative advantage one must determine 

• Opportunity cost
• Specialization
• Absolute Advantage
• Embargos 

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

• Tariff
• Quota
• Embargo
• Subsidy

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

Underdeveloped nations tend to trade what type of goods

• Low skill products
• High tech goods
• finished products
• High skill products