Trade Jeopardy 40-2

DIRECTIONS: As in the popular TV game show, you are given an answer to a question and you must respond with the question. For example, if the answer is, "a tax on imports," then the correct question is, "What is a tariff?"

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1. The author who wrote the earliest known passage explaining the principle of comparative advantage.
2. Term describing the amount of labor needed to produce one unit of cloth.
3. Term describing the amount of tomatoes produced per worker.
4. Term describing the amount of potatoes that must be given up to produce another unit of tomatoes.
5. the opportunity cost of wine (liters) in terms of cheese (kg) is measured in these units.
6. type of advantage a country has if it can produce a good at a lower opportunity cost than another country.
7. type of advantage a country has in computers if it can produce computers most best compared to another country.
8. type of advantage a country has if its labor productivity is twice as high in peanuts as another country.
9. the terms of trade defined in units of kg of cheese per liter of wine is this ratio of prices.
10. the country that exports cheese if the US autarky terms of trade is 3 kg/liter and France's is 2 kg/liter.

International Trade Theory and Policy - Chapter 40: Last Updated on 8/12/07