22. Intra-industry trade between similar trading partners allows the gains from that arise when rms and workers specialize in the production of a certain product. A. comparative advantage B. learning and innovation C. creating the value chain D. relative advantage 23. The reasons that nations trade includes the fact that: A. no one country produces all of what citizens within the country want. B. the wants oftheir citizens exceeds their productive capacity. C. different countries have different levels of greed. D. labor costs are too high in some countries to efciently produce goods 24. Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. Which of the following statements is true? A. Alpha should export to Beta, but Beta should not export t_o_ Alpha. B. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. C. If Alpha specializes in growing oranges and Beta specializes in growing apples, they could both gain by specialization and trade. D. If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade. 25. Which of the following is the best example of a quota? A. a tax placed on all small cars sold in the domestic market B. a limit imposed on the number of men's suits that can be imported from a foreign country C. a subsidy from the American government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits D. a Sloo-per-car fee imposed on all small cars imported 26. A tariff differs from a quota in that a tariff is: A. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported. B. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. C. levied on exports, whereas a quota is imposed on imports. D. levied on imports, whereas a quota is imposed on exports. 27. is theoretically possible, even sensible: give an industry a short-term indirect subsidy through protection, and then reap the long-term economic benets of having a vibrant healthy industry. A. Protectionism B. The infant industry argument C. Dumping D. Import quotas 23. Low-wage U.S. workers suffer from protectionism in all the industries that they don't work in, because: A. protectionism provides a barrier to entry to the job markets that the low-wage earners want entry to. B. protectionism forces them to pay higher prices for basic necessities like clothing and food. C. protectionism will encourage foreign workers to apply for American jobs. D. protectionism will prevent them from applying for those jobs in other industries. 29. The race to the bottom scenario of global environmental degradation is explained roughly like this: A. Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution. B. Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution. C. Prot-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their prots. D. Companies seek to inuence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize prots. 30. As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) advantage and toward industries where it does have such advantage. A. absolute; absolute B. comparative; comparative C. comparative; competitive D. comparative,- absolute