Interdependnce And Gains From Trade

Question 0

Absolute adv

Answer 0

When a producer can produce a good using fewer factor inputs than another

Question 1

PPF

Answer 1

Graph that shows the combinations of output that the economy can possibly produce given the available FOP and production technology

Question 2

Comparative adv

Answer 2

If opp cost is lower than another producer’s

Question 3

Inputs

Answer 3

Goods produced abroad and purchased for use in the domestic economy leading to an outflow of funds from a country

Question 4

Exports

Answer 4

Goods produced domestically and sold abroad leading to an inflow of funds into a country

Question 5

Tariff

Answer 5

Tax on goods produces abroad and sold domestically

Question 6

Import quota

Answer 6

Limit on the Q of a good that can be produced abroad and sold domestically

Question 7

Non tariff barriers

Answer 7

Discriminatory rules of origin and quality conditions
Sanitary conditions
Administrative burden
Currency manipulation

Question 8

Arguments for restricting trade

Answer 8

Domestic jobs
National security 
Infant industries find it harder with more competition 
Unfair competition 
Protection as a bargaining chip arg