Question

A tax on a good that is imposed when the good is imported is (an import...

A tax on a good that is imposed when the good is imported is (an import quota; a tariff).

The assertion that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is the (infant-industry; maturing-industry) argument.

(Dumping, subsidy) occurs when a foreign firm sells its exports at a lower price than its cost of production.

If a nation can produce a service at lower opportunity cost than any other nation, the nation has a national comparative advantage in producing that service. True/False

If the price of a good in the United States with no international trade is higher than the world price, then with international trade the United States will export that good. True/False

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Answer #1

● A tax on a good that is imposed when the good is imported is a tariff.

● The assertion that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is the infant-industry argument.

● Dumping occurs when a foreign firm sells its exports at a lower price than its cost of production.

● If a nation can produce a service at lower opportunity cost than any other nation, the nation has a national comparative advantage in producing that service. True.

● If the price of a good in the United States with no international trade is higher than the world price, then with international trade the United States will export that good. False.

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