A Numerical Limit on the Quantity of a Good That Can Be Imported Is a:

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Macroeconomics Ch. 7

Swalaheen Comparative Advantage and Gains from International Merchandise

Question	Answer
Tariff	A taxation imposed past a government on imports.
Imports	Goods and services bought domestically but produced in other countries.
Exports	Goods and services produced domestically but sold in other countries.
Comparative Advantage	The ability of an individual, a business firm, or a country to produce a skillful or service at a lower opportunity price than competitors.
Opportunity Toll	The highest values alternative that must be given upward to engage in an activity.
Absolute Advantage	The ability to produce more of a proficient or service than competitors when using the aforementioned amount of resources.
Autarky	A state of affairs in which a country does not trade with other countries.
Terms of Trade	The ratio at which a land can trade its exports for imports from other countries.
Why don't nosotros see complete specialization?	1) Not all goods and services are traded internationally, 2) prod. of most goods involves increasing opportunity costs, and 3) tastes for products differ.
Where does Comparative Advantage come up from?	one) Climate and natural resources, 2) Relative abundance of labor and capital, 3)Technology, four) External Economies.
External Economies	Reductions in a firm'due south costs that consequence from an increment in the size of an industry.
Gratuitous Trade	Trade betwixt countries that is without regime restrictions.
T/F: The well-nigh common interferences with merchandise are Tariffs.	TRUE.
Quota	A numerical limit a government imposes on the quantity of a good that tin be imported into the country. *Imposed past the government of the importing state.
Voluntary Export Restraint (VER)	An agreement negotiated between ii countries that places a numerical limit on the quantity of a skilful that can be imported by 1 land from the other land.
T/F: The main purpose of nearly tariffs and quotas is to reduce the foreign competition that domestic firms face.	TRUE.
T/F: The Usa economic system would non proceeds from the elimination of Tariffs and quotas even if other countries did non reduce their tariffs and quotas.	False. The economy would gain.
World Merchandise Organisation (WTO)	An international organization that oversees international trade agreements.
Globalization	The procedure of countries becoming more open up to foreign trade and investment.
Protectionism	The utilize of trade barriers to shield domestic firms from foreign competition.
Protectionism is usually justified past these arguments.	one) Saving Jobs 2) Protecting loftier wages 3) Protecting infant industries four) Protecting national security
Dumping	Selling a product for a price below its cost of production.

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Source: https://www.studystack.com/flashcard-1421731

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