Question 1

One way to reduce exports is to

Accepted Answer

A) base trade on comparative advantage. 
B) base trade on opportunity costs. 
C) trade with poor countries. 
D) restrict imports. 
A) base trade on comparative advantage. 
B) base trade on opportunity costs. 
C) trade with poor countries. 
D) restrict imports.

Question 2

Benefits of free trade include all of the following EXCEPT

Accepted Answer

A) increased world production. 
B) higher standards of living. 
C) transmission of new ideas. 
D) increased international mobility of labor. 
A) increased world production. 
B) higher standards of living. 
C) transmission of new ideas. 
D) increased international mobility of labor.

Question 3

-Refer to the above figures.A tariff is placed on a foreign good.Which figures represents the situation in the domestic market for a competing domestic good?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D 
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Question 4

Which of the following is counted as a benefit from international trade?

Accepted Answer

A) New production processes developed in one nation are transmitted to others. 
B) Intellectual property such as music and computer applications is introduced throughout the world. 
C) New goods have been introduced to other parts of the world. 
D) All of the above are benefits from international trade. 
A) New production processes developed in one nation are transmitted to others. 
B) Intellectual property such as music and computer applications is introduced throughout the world. 
C) New goods have been introduced to other parts of the world. 
D) All of the above are benefits from international trade.

Question 5

Maximum Feasible Hourly Production Rates of Either 
Computers or Bicycles Using All Available Resources
$$\begin{array}{l}
\begin{array} {lll }

Product & United States & Mexico \
\hline Computers & 8 & 10 \
Bicycles & 4 & 2
\end{array}
\end{array}$$
-Refer to the above table.Assuming constant opportunity costs,the opportunity cost of producing a computer in the United States is ________ while the opportunity cost of producing a computer in Mexico is ________.

Accepted Answer

A) 0.8 bicycle; 2 computers 
B) 2.5 computers; 0.25 bicycle 
C) 0.5 bicycle; 0.2 bicycle 
D) 2 bicycles; 5 bicycles 
A) 0.8 bicycle; 2 computers 
B) 2.5 computers; 0.25 bicycle 
C) 0.5 bicycle; 0.2 bicycle 
D) 2 bicycles; 5 bicycles

Question 6

Maximum Feasible Hourly Production Rates of Either 
Computers or Bicycles Using All Available Resources
$$\begin{array}{l}
\begin{array} {l ll }

Product & United States & Mexico \
\hline Computers & 8 & 3 \
Bicycles & 2 & 6
\end{array}
\end{array}$$a
-Refer to the above table.If opportunity costs are constant,the two countries will gain from trade at a rate of exchange of

Accepted Answer

A) 0.1 computer for 1 bicycle 
B) 5 computers for 1 bicycle 
C) 1 computer for 1 bicycle 
D) 8 bicycles for 1 computer 
A) 0.1 computer for 1 bicycle 
B) 5 computers for 1 bicycle 
C) 1 computer for 1 bicycle 
D) 8 bicycles for 1 computer

Question 7

Explain the infant industry argument.

Accepted Answer

The infant industry argument is an argum

Question 8

One economic truism is that any nation's restriction of imports will ultimately lead to

Accepted Answer

A) an increase in exports. 
B) a reduction in exports. 
C) an economic upswing. 
D) an increase in GDP. 
A) an increase in exports. 
B) a reduction in exports. 
C) an economic upswing. 
D) an increase in GDP.

Question 9

A tariff is a

Accepted Answer

A) legal limit on sales of a foreign product in the domestic market. 
B) regulation of the quality of a foreign product sold in the domestic market. 
C) tax on sales of a foreign product in the domestic market. 
D) voluntary limit on sales of a foreign product in the domestic market. 
A) legal limit on sales of a foreign product in the domestic market. 
B) regulation of the quality of a foreign product sold in the domestic market. 
C) tax on sales of a foreign product in the domestic market. 
D) voluntary limit on sales of a foreign product in the domestic market.

Question 10

Which of the following is consistent with international trade theory?

Accepted Answer

A) The United States needs trade restrictions to stay competitive. 
B) The United States has been falling behind Europe and Japan because its economy is too open. 
C) The standard of living within a country is a function of the economic strength of the economy and not of its relative position. 
D) A country should strive for comparative advantage in manufacturing. 
A) The United States needs trade restrictions to stay competitive. 
B) The United States has been falling behind Europe and Japan because its economy is too open. 
C) The standard of living within a country is a function of the economic strength of the economy and not of its relative position. 
D) A country should strive for comparative advantage in manufacturing.

Question 11

Which of the following statements is FALSE?

Accepted Answer

A) When it comes to overall productive efficiency,compared to Japan,Germany and the rest of the European Union,the United States lags far behind. 
B) Sophisticated financial systems have given U.S.productive efficiency a boost. 
C) The United States' international competitive position has been helped by its long history of widespread entrepreneurship. 
D) Economic restructuring and investments in information technology have added to productive efficiency in the United States. 
A) When it comes to overall productive efficiency,compared to Japan,Germany and the rest of the European Union,the United States lags far behind. 
B) Sophisticated financial systems have given U.S.productive efficiency a boost. 
C) The United States' international competitive position has been helped by its long history of widespread entrepreneurship. 
D) Economic restructuring and investments in information technology have added to productive efficiency in the United States.

Question 12

Today,the share of international trade in U.S.GDP is

Accepted Answer

A) almost 0 percent. 
B) about 10 percent. 
C) close to 30 percent. 
D) more than 99 percent. 
A) almost 0 percent. 
B) about 10 percent. 
C) close to 30 percent. 
D) more than 99 percent.

Question 13

The contention that domestic unions tend to want to restrict foreign competition with tariffs is

Accepted Answer

A) a national defense concern. 
B) the infant industry argument. 
C) dumping. 
D) to protect domestic jobs. 
A) a national defense concern. 
B) the infant industry argument. 
C) dumping. 
D) to protect domestic jobs.

Question 14

Goods that are produced domestically and then sold in other countries are called

Accepted Answer

A) exports. 
B) imports. 
C) tariffs. 
D) quotas. 
A) exports. 
B) imports. 
C) tariffs. 
D) quotas.

One way to reduce exports is to

Benefits of free trade include all of the following EXCEPT

-Refer to the above figures.A tariff is placed on a foreign good.Which figures represents the situation in the domestic market for a competing domestic good?

Which of the following is counted as a benefit from international trade?

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product UnitedStates Mexico Computers 8 3 Bicycles 2 6 a -Refer to the above table.If opportunity costs are constant,the two countries will gain from trade at a rate of exchange of

Explain the infant industry argument.

One economic truism is that any nation's restriction of imports will ultimately lead to

A tariff is a

Which of the following is consistent with international trade theory?

Which of the following statements is FALSE?

Today,the share of international trade in U.S.GDP is

The contention that domestic unions tend to want to restrict foreign competition with tariffs is

Goods that are produced domestically and then sold in other countries are called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

Filters

Exam 19: Comparative Advantage and the Open Economy

One way to reduce exports is to

Benefits of free trade include all of the following EXCEPT

-Refer to the above figures.A tariff is placed on a foreign good.Which figures represents the situation in the domestic market for a competing domestic good?

Which of the following is counted as a benefit from international trade?

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product UnitedStates Mexico Computers 8 3 Bicycles 2 6 a -Refer to the above table.If opportunity costs are constant,the two countries will gain from trade at a rate of exchange of

Explain the infant industry argument.

One economic truism is that any nation's restriction of imports will ultimately lead to

A tariff is a

Which of the following is consistent with international trade theory?

Which of the following statements is FALSE?

Today,the share of international trade in U.S.GDP is

The contention that domestic unions tend to want to restrict foreign competition with tariffs is

Goods that are produced domestically and then sold in other countries are called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

Filters