Author: Anonymous

If St. John has a closed economy, it ________ with other countries.

From an economic perspective, the key fact about trade is that

A tariff

Suppose an economist giving a speech gives the example of someone having a “comparative advantage” at making cars. During the question-and-answer session, someone asks, “compared to what?” How will the economist answer?

A quota

Use the scenario to answer the following questions:Suppose that Canada, an industrialized nation, and Mexico, a developing nation, both produce clothes and cars. The real wage in Mexico is lower than in Canada. The countries have a free trade agreement. Each nation will find a comparative advantage. Which country’s consumers will benefit from the free trade agreement?

In the domestic market following the imposition of an import quota, imports ________, domestic production ________, and prices ________.

Which of the following is an important characteristic of good economic models?

A nation will engage in voluntary trade if

An economy that trades with the rest of the world is a(n) ________ economy.