Chapter 15 Post Quiz
Comparative Advantage and Protectionism

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Comparative advantage	a. Will result in each country specializing in production of its comparative advantage good.
	2. Free trade	b. A tax levied on imports.
	3. Terms of trade	c. Will see their incomes fall in free trade.
	4. Consumption possibility curve	d. A tariff that is so high that it forces imports to zero.
	5. Market failures	e. The recipients of the revenue from a quota.
	6. Comparative disadvantage industries	f. Begins at the country's point of complete specialization and then runs outward at the slope that corresponds to the world price ratio.
	7. Tariff	g. A tariff that maximizes real domestic income.
	8. Quota	h. Can lead economies to a point inside the production possibility frontier.
	9. Prohibitive tariff	i. A limit on the quantity of imports.
	10. Domestic government	j. The recipient of the revenue from a tariff.
	11. Exporters and importers	k. States that each country will benefit if it specializes in the production and export of those goods that it can produce at relatively low cost.
	12. Infant industry argument	l. The ratio of export prices to import prices.
	13. Optimal tariff	m. Claims that startup industries need a tariff in order to give them a chance to get started without a lot of foreign competition.
	14. NAFTA	n. A free trade agreement between the United States, Canada, and Mexico.