A. balance of trade
B. comparative advantage
C. balance of payments
D. terms of trade
A. common market
B. free trade area
C. customs union
D. federation
A. Comparative advantage is achieved
B. Price elasticity of imports is unity and tariff revenue is maximized
C. import prices are the same as export prices
D. marginal social cost equals marginal social benefit
A. Side payments
B. Tariffs
C. subsidies
D. export quotas
A. The price of goods when they leave the producing country
B. a limit on the quantity of a good that can be imported into a country
C. a tax on imports
D. a government payment to encourage exports
A. its opportunity costs; world opportunity costs
B. export prices; import prices
C. Value of exports; value of imports
D. its currency; other currencies
A. absolute advantage
B. mutual advantage
C. multilateral advantage
D. comparative advantage
A. Ricardo Malthus theorem
B. Heckscher Ohlin theorem
C. Lucas-Laffer theorem
D. Friedman Samuelson theorem
A. Decreased productivity in U.S manufacturing
B. High incomes of American households
C. Relatively low interest rates in the United States
D. High levels of investment by American corporations
A. Provide benefits for all producers and consumers
B. Increase the nation’s aggregate income
C. Reduce unemployment for all domestic workers
D. Ensure that industries can operate at less than full capacity