Chapter 19 : International Trade, Comparative Advantage, and Protectionism 501 8. According to the preceding table,
9. According to the table, one hour of labor produces
10. For trade to occur, the terms of trade might be
11. Tariffs and quotas are economically inefficient because (a) the government does not collect any revenues under a tariff. (b) imports rise and this reduces the welfare of consumers. (c) producers are saved from the pressure of foreign competition. (d) domestic prices must be reduced.
12. Which of the following is an argument in favor of increased protection?
13. Each of the following is a trade barrier EXCEPT
14. Statement 1: A country with an absolute advantage in the production of a good will also have a comparative advantage. Statement 2: A country with a comparative advantage in the production of a good will also have an absolute advantage. Statement 1 is ; Statement 2 is .