Exam 2: Why Countries Trade

based on the following information. A worker in the U.S. can produce either 10 chips or 20 sodas per day. A worker in Mexico can produce either 20 chips or 60 sodas per day. -Which of the following would be the best ratio for Mexico in terms of the gains from trade?

(Multiple Choice)

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Question 41

Which of the following is not one of the dynamic gains from trade?

(Multiple Choice)

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Question 42

_ has a comparative advantage in the production of brooms and _ has a comparative advantage in the production of hats.

(Multiple Choice)

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Question 43

If a country has an absolute advantage in the production of all products then it makes no sense for it to trade with other countries.

(True/False)

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Question 44

The only difference between domestic trade and international trade is the existence of tariffs on imported goods.

(True/False)

4.8/5

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Question 45

If a country has a(n) _____ advantage in the production of a particular good, its opportunity cost of producing that good is lower than the opportunity cost for the trading partner for producing the same good.

(Multiple Choice)

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Question 46

Consider the information below for Namibia and Malaysia. Namibian labor: 16 baskets/day or 4 lamps/day Malaysian labor 20 baskets/day or 8 lamps/day -Which of the following is a viable world price for one lamp?

(Multiple Choice)

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Question 47

Abstraction is something that only occurs in economic theory.

(True/False)

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Question 48

Suppose that the U.S. imports cloth from India. Describe what will happen to the price and quantity produced of cloth in both countries.

(Essay)

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Question 49

-Which of the following is a viable world price for one scooter?

(Multiple Choice)

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Question 50

International trade occurs for very different reasons than interregional trade within a country.

(True/False)

4.8/5

(36)

Question 51

The theory that suggests that a country's wealth is based on the amount of gold it holds is called:

(Multiple Choice)

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Question 52

In Bulgaria the price of brooms in terms of hats is:

(Multiple Choice)

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Question 53

Specialization and trade increase the world's output of goods and services.

(True/False)

4.8/5

(44)

Question 54

Smith's theory of absolute advantage is based on:

(Multiple Choice)

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Question 55

-Based on the information above, if the two countries specialize and trade the U.S. will export _ and Holland will export _ .

(Multiple Choice)

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(36)

Question 56

based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth. -Which of the following statements is false?

(Multiple Choice)

4.8/5

(32)

Question 57

Which of the following is not one of the dynamic gains from trade?

(Multiple Choice)

4.9/5

(36)

Question 58

World output will be maximized when each country produces according to its comparative advantage.

(True/False)

4.7/5

(44)

Question 59

An important dynamic gain from international trade is that trade tends to increase the rate of growth of real GDP.

(True/False)

4.8/5

(41)

Question 60

Showing 41 - 60 of 94

based on the following information. A worker in the U.S. can produce either 10 chips or 20 sodas per day. A worker in Mexico can produce either 20 chips or 60 sodas per day. -Which of the following would be the best ratio for Mexico in terms of the gains from trade?

Which of the following is not one of the dynamic gains from trade?

_ has a comparative advantage in the production of brooms and _ has a comparative advantage in the production of hats.

If a country has an absolute advantage in the production of all products then it makes no sense for it to trade with other countries.

The only difference between domestic trade and international trade is the existence of tariffs on imported goods.

If a country has a(n) _____ advantage in the production of a particular good, its opportunity cost of producing that good is lower than the opportunity cost for the trading partner for producing the same good.

Consider the information below for Namibia and Malaysia. Namibian labor: 16 baskets/day or 4 lamps/day Malaysian labor 20 baskets/day or 8 lamps/day -Which of the following is a viable world price for one lamp?

Abstraction is something that only occurs in economic theory.

Suppose that the U.S. imports cloth from India. Describe what will happen to the price and quantity produced of cloth in both countries.

-Which of the following is a viable world price for one scooter?

International trade occurs for very different reasons than interregional trade within a country.

The theory that suggests that a country's wealth is based on the amount of gold it holds is called:

In Bulgaria the price of brooms in terms of hats is:

Specialization and trade increase the world's output of goods and services.

Smith's theory of absolute advantage is based on:

-Based on the information above, if the two countries specialize and trade the U.S. will export _ and Holland will export _ .

based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth. -Which of the following statements is false?

Which of the following is not one of the dynamic gains from trade?

World output will be maximized when each country produces according to its comparative advantage.

An important dynamic gain from international trade is that trade tends to increase the rate of growth of real GDP.

Introduction: An Overview of the World Economy

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Macroeconomic Policy and Floating Exchange Rates

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters

Exam 2: Why Countries Trade

based on the following information. A worker in the U.S. can produce either 10 chips or 20 sodas per day. A worker in Mexico can produce either 20 chips or 60 sodas per day. -Which of the following would be the best ratio for Mexico in terms of the gains from trade?

Which of the following is not one of the dynamic gains from trade?

_____ has a comparative advantage in the production of brooms and _____ has a comparative advantage in the production of hats.

If a country has an absolute advantage in the production of all products then it makes no sense for it to trade with other countries.

The only difference between domestic trade and international trade is the existence of tariffs on imported goods.

If a country has a(n) _____ advantage in the production of a particular good, its opportunity cost of producing that good is lower than the opportunity cost for the trading partner for producing the same good.

Consider the information below for Namibia and Malaysia. Namibian labor: 16 baskets/day or 4 lamps/day Malaysian labor 20 baskets/day or 8 lamps/day -Which of the following is a viable world price for one lamp?

Abstraction is something that only occurs in economic theory.

Suppose that the U.S. imports cloth from India. Describe what will happen to the price and quantity produced of cloth in both countries.

-Which of the following is a viable world price for one scooter?

International trade occurs for very different reasons than interregional trade within a country.

The theory that suggests that a country's wealth is based on the amount of gold it holds is called:

In Bulgaria the price of brooms in terms of hats is:

Specialization and trade increase the world's output of goods and services.

Smith's theory of absolute advantage is based on:

-Based on the information above, if the two countries specialize and trade the U.S. will export _____ and Holland will export _____ .

based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth. -Which of the following statements is false?

Which of the following is not one of the dynamic gains from trade?

World output will be maximized when each country produces according to its comparative advantage.

An important dynamic gain from international trade is that trade tends to increase the rate of growth of real GDP.

Introduction: An Overview of the World Economy

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Macroeconomic Policy and Floating Exchange Rates

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters

_ has a comparative advantage in the production of brooms and _ has a comparative advantage in the production of hats.

-Based on the information above, if the two countries specialize and trade the U.S. will export _ and Holland will export _ .