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Poli 150 Final Exam UNC Questions With 100%
Correct Answers. 2025
comparative advantage - (answers)The ability of a country to produce a good at a
lower cost than another country can.
Absolute advantage - (answers)the ability of an individual, a firm, or a country to
produce more of a good or service than competitors, using the same amount of
resources
Heckscher-Ohlin trade theory - (answers)The theory that a country will export
goods that make intensive use of the factors of production in which it is well
endowed. Thus, a labor-rich country will export goods that make intensive use of
labor.
Protectionism - (answers)The imposition of barriers to restrict imports.
Trade barriers - (answers)Taxes, quotas, and other restrictions on goods entering
or leaving a country.
Tariffs - (answers)A tax imposed on imports.
Quantitative restriction (quota) - (answers)limit placed on the amount of a
particular good that is allowed to be imported
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nontariff barriers to trade - (answers)Obstacles to imports other than tariffs
(trade taxes). Examples include restrictions on the number of products that can
be imported; regulations that favor domestic over imported products; and other
measures that discriminate against foreign goods or services.
Stolper-Samuelson Theorem - (answers)The theory is that protection benefits the
scarce factor of production. if a country imports goods that make intensive use of
its scarce factor, then limiting imports will help that factor. So in a labor-scarce
country, labor benefits from protection and loses from trade liberalization.
Ricardo-Viner (specific-factors) model - (answers)theory that emphasizes the
sector in which factors of production are employed rather than the nature of the
factor itself
Reciprocity - (answers)a mutual agreement to lower tariffs and other barriers to
trade.
Most-favored nation (MFN) status - (answers)established by most modern trade
agreements guaranteeing that the signatories will extend to each other any
favorable trading terms offered in agreements with third parties
World Trade Organization (WTO) - (answers)International organization derived
from the General Agreement on Tariffs and Trade (GATT) that promotes it free
trade around the world.
Poli 150 Final Exam UNC Questions With 100%
Correct Answers. 2025
comparative advantage - (answers)The ability of a country to produce a good at a
lower cost than another country can.
Absolute advantage - (answers)the ability of an individual, a firm, or a country to
produce more of a good or service than competitors, using the same amount of
resources
Heckscher-Ohlin trade theory - (answers)The theory that a country will export
goods that make intensive use of the factors of production in which it is well
endowed. Thus, a labor-rich country will export goods that make intensive use of
labor.
Protectionism - (answers)The imposition of barriers to restrict imports.
Trade barriers - (answers)Taxes, quotas, and other restrictions on goods entering
or leaving a country.
Tariffs - (answers)A tax imposed on imports.
Quantitative restriction (quota) - (answers)limit placed on the amount of a
particular good that is allowed to be imported
, 2|Page
nontariff barriers to trade - (answers)Obstacles to imports other than tariffs
(trade taxes). Examples include restrictions on the number of products that can
be imported; regulations that favor domestic over imported products; and other
measures that discriminate against foreign goods or services.
Stolper-Samuelson Theorem - (answers)The theory is that protection benefits the
scarce factor of production. if a country imports goods that make intensive use of
its scarce factor, then limiting imports will help that factor. So in a labor-scarce
country, labor benefits from protection and loses from trade liberalization.
Ricardo-Viner (specific-factors) model - (answers)theory that emphasizes the
sector in which factors of production are employed rather than the nature of the
factor itself
Reciprocity - (answers)a mutual agreement to lower tariffs and other barriers to
trade.
Most-favored nation (MFN) status - (answers)established by most modern trade
agreements guaranteeing that the signatories will extend to each other any
favorable trading terms offered in agreements with third parties
World Trade Organization (WTO) - (answers)International organization derived
from the General Agreement on Tariffs and Trade (GATT) that promotes it free
trade around the world.
