Lec 7.2

Question 1

A limit on the number of foreign goods that may come into a given country

Answer 1

Quota

Question 2

Gov’t compensates losers during the “adjustment period” after a free trade agreement.

Answer 2

Trade Agreement Assistance

Question 3

Shows different production combinations available to society

Answer 3

Productions possibilities frontier

Question 4

When a country is not one to trade

Answer 4

Autarky

Question 5

One who may produce significantly more in a given amount of time frame

Answer 5

Absolute Advantage

Question 6

Lower Opportunity Cost in order to acquire something

Answer 6

Comparative Advantage

Question 7

These are a Pareto improvement allocation over Autarky

Answer 7

Specialization & Trade