Question 21 (Mandatory) (1 point) Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not. Question 21 options: True False Question 22 (Mandatory) (1 point) Trade occurs when a country has an absolute advantage and not just a comparative advantage over another country. Question 22 options: True False
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Akash M.
6 . Gains from Trade Indicate whether each of the following statements is true or false. Statement True False 1. There can be no gains from trade between two countries if one of them has an absolute advantage in the production of all goods. 2. Comparative advantage determines the gains from specialization and trade. 3. If a certain trade is good for one country, it can't be good for the other country. 4. Two individuals can benefit from specialization and trade if they agree upon a price that lies between their opportunity costs of producing the good. 5. When a country opens to trade, people working in industries producing goods that the country exports are harmed by the trade.
James K.
7. By the mid-1930's, governments all over the world entered the ____ era of international trade. Since 2017, the U.S. and other countries have moved closer to the ____ era which, in 1930, saw the passage of ____ and ____. a. Reciprocity; restriction; The Smoot-Hawley Tariff Act; The Great Depression b. Restriction; reciprocity; NAFTA; job losses in the United States. c. Revenue; restriction; Article One, Section Eight, Clause three of the Constitution; as expected, a decrease in total revenue. d. Reciprocity; restriction; the 16th amendment; World War II e. None of the above. 8. Based on what we know about the economic impact of tariffs and quotas, which of the garners some conditional support from economists? a. When concerns over human rights and the environment are used to increase tariffs. b. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. c. When the value of the dollar fluctuates compared to foreign currency. d. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. e. When, with temporary protection, an infant industry could emerge and show long-run comparative advantages over other countries. 9. Historically, many people have argued that tariffs and quotas should be used to prevent other nations from engaging in predatory pricing. For economists, this argument is largely flawed ______ because: a. Predatory pricing leads to fewer companies over time; higher prices and monopoly profits for the successful predator. b. Predatory pricing may lead to large discounts for consumers in the short run, but the elimination of job opportunities in the long run as domestic suppliers close. c. Predatory pricing has been proven to be an inefficient practice since the "predators" must be willing to incur initial losses and do not have the power to control markets indefinitely. d. Predatory pricing leads to companies with no comparative advantage being dominant in the markets they pursue.
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