Lesson 5 Quiz over Chapter 33

Question 1

Tariffs are taxes that governments place on exported goods for a variety of reasons.
True or False?

Answer 1

False

tariffs are taxes that governments place on imported goods from other countries.

Question 2

Columbia produces coffee with less labor and land than any other country; it therefore necessarily has:

Answer 2

an absolute advantage in coffee production

Question 3

The slope of the production possibility frontier is determined by the __________ of expanding production of one good, measured by how much of the other good would be lost.

Answer 3

opportunity cost

Question 4

What is the current round of World Trade Organization negotiations?

Answer 4

Doha Round.

Question 5

The primary benefits of international trade include:

Answer 5

the more efficient use of world resources and higher standards of living.

Question 6

When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) ______________ in producing that product.

Answer 6

absolute advantage

Question 7

Which of the following concepts provides the basic rational for international trade?

Answer 7

comparative advantage

Question 8

Which of the following countries has recently emerged as one of the world/’s top trading nations in terms of total trade volume?

Answer 8

China

Question 9

The World Trade Organization is committed to lowering barriers to trade.
True or False?

Answer 9

True

Question 10

The idea behind comparative advantage reflects the possibility that one party:

Answer 10

may be able to produce something at a lower opportunity cost than another party.