Question 1

In considering the distribution of the gains from trade:

Accepted Answer

A)  Smaller countries usually get a larger proportion of the gains from trade. 
B)  Larger countries usually get a larger proportion of the gains from trade. 
C)  The gains are generally split equally between small and large countries. 
D)  No statement can be made about the general nature of the split. 
A)  Smaller countries usually get a larger proportion of the gains from trade. 
B)  Larger countries usually get a larger proportion of the gains from trade. 
C)  The gains are generally split equally between small and large countries. 
D)  No statement can be made about the general nature of the split.

Question 2

The foreign exchange market is the market in which:

Accepted Answer

A)  foreigners buy U.S. real estate. 
B)  foreign stocks and bonds are bought and sold. 
C)  ideas from different countries are exchanged. 
D)  currencies of different countries are bought and sold. 
A)  foreigners buy U.S. real estate. 
B)  foreign stocks and bonds are bought and sold. 
C)  ideas from different countries are exchanged. 
D)  currencies of different countries are bought and sold.

Question 3

Refer to the graph shown.   If the price of Israeli shekels is $1.10, the quantity of shekels supplied is:

Accepted Answer

A)  greater than the quantity demanded. This causes the shekel to gain value. 
B)  less than the quantity demanded. This causes the shekel to gain value. 
C)  greater than the quantity demanded. This causes the shekel to lose value. 
D)  less than the quantity demanded. This causes the shekel to lose value. 
A)  greater than the quantity demanded. This causes the shekel to gain value. 
B)  less than the quantity demanded. This causes the shekel to gain value. 
C)  greater than the quantity demanded. This causes the shekel to lose value. 
D)  less than the quantity demanded. This causes the shekel to lose value.

Question 4

The resource curse is when:

Accepted Answer

A)  a nation only has an inherent comparative advantage for one resource. 
B)  a nation only has a transferrable comparative advantage for one resource. 
C)  the discovery of a resource in a nation causes its currency to appreciate and thus causes the nation to lose comparative advantages in other sectors. 
D)  a nation has neither an inherent nor a transferrable comparative advantage for any resource. 
A)  a nation only has an inherent comparative advantage for one resource. 
B)  a nation only has a transferrable comparative advantage for one resource. 
C)  the discovery of a resource in a nation causes its currency to appreciate and thus causes the nation to lose comparative advantages in other sectors. 
D)  a nation has neither an inherent nor a transferrable comparative advantage for any resource.

Question 5

If the United States' price level is below the world price level, all of the following would be successful in raising the world price (supply) level except:

Accepted Answer

A)  the dollar appreciating. 
B)  the United States gaining a comparative advantage. 
C)  wages in the United States falling. 
D)  the value of U.S. assets falling. 
A)  the dollar appreciating. 
B)  the United States gaining a comparative advantage. 
C)  wages in the United States falling. 
D)  the value of U.S. assets falling.

Question 6

The United States imports:

Accepted Answer

A)  only manufactured goods. 
B)  only services. 
C)  neither manufactured goods nor services. 
D)  both manufactured goods and services. 
A)  only manufactured goods. 
B)  only services. 
C)  neither manufactured goods nor services. 
D)  both manufactured goods and services.

Question 7

The country with a comparative advantage in the production of good X is the one that:

Accepted Answer

A)  has the greatest technical efficiency in producing good X. 
B)  has the greatest supply of the natural resources used in producing good X. 
C)  can produce good X with the least labor. 
D)  can produce good X at the lowest opportunity cost. 
A)  has the greatest technical efficiency in producing good X. 
B)  has the greatest supply of the natural resources used in producing good X. 
C)  can produce good X with the least labor. 
D)  can produce good X at the lowest opportunity cost.

In considering the distribution of the gains from trade:

The foreign exchange market is the market in which:

Refer to the graph shown. If the price of Israeli shekels is $1.10, the quantity of shekels supplied is:

The resource curse is when:

If the United States' price level is below the world price level, all of the following would be successful in raising the world price (supply) level except:

The United States imports:

The country with a comparative advantage in the production of good X is the one that:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters

Exam 9: Comparative Advantage, Exchange Rates, and Globalization

In considering the distribution of the gains from trade:

The foreign exchange market is the market in which:

Refer to the graph shown. If the price of Israeli shekels is $1.10, the quantity of shekels supplied is:

The resource curse is when:

If the United States' price level is below the world price level, all of the following would be successful in raising the world price (supply) level except:

The United States imports:

The country with a comparative advantage in the production of good X is the one that:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters