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1.) Here are alternate outputs from one day's labor input: USA: 12 bushels of wheat or 3 yards of textiles.

Published on January 2018 | Categories: Government & Politics | Downloads: 48 | Comments: 0
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1.) Here are alternate outputs from one day's labor input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA: A) should export textiles to India.B) has a comparative advantage in the production of textiles.C) has an absolute advantage over India in the production of wheatD) has an absolute advantage over India in the production of textiles. 2.) Say that Aliceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 16 units of food per year or 8 units of clothing. Which of the following is true? A) Aliceland has an absolute advantage, but not comparative advantage, in producing food.B) Georgeland has both a comparative and absolute advantage in producing clothing.C) Aliceland has a comparative advantage, but not an absolute advantage, in producing food.D) Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing. 3.) When the world price of some good is above the domestic price (before trade), then after trade, that nation will likely be: A) exporting that item and importing whatever it produces at an absolute disadvantage.B) importing that item and exporting whatever it produces at an absolute advantage.C) importing that item and exporting whatever it produces at a comparative advantage.D) exporting that item and importing whatever it produces at a comparative disadvantage. 4.) Choose ALL that apply. Which of the following phenomena can a nation expect when it opens (more widely) to international trade? A) Prices will rise.B) Prices will fall.C) Some industries will prosper and expand.D) Some industries will suffer and shrink. 5.) Assume that the US produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. A tariff imposed by the US government on mangoes from India will: A) Keep the price of mangoes the same in the US, and increase the quantity of mangoes.B) Lower the price of mangos in the US, and lower the quantity of mangoes sold in the US.C) Increase the price of mangoes in the US, and lower the quantity of mangoes sold in the US. 6) Choose ALL that apply. Why are some economists concerned about the proliferation of regional trade agreements? A) Regional trade agreements make the economies of partner nations more independent of each other.B) Regional trade agreements may limit trade from outside the regions in agreement.C) Regional trade agreements terms can conflict with those of the WTO. 7) Choose ALL that apply. Refer to the video on the US-South Korea free trade agreement. When Free Trade Agreements are negotiated,: A) Some firms have greater access to export markets.B) Some firms that sell domestically produced products may be harmed.C) consumers necessarily gain as firms lower the price of tariffed products. 8) If the value of the Euro appreciates compared to the Dollar, what is logical outcome for US exports to the EU? A) The amount of exports to the EU rises.B) Nothing.C) The amount of exports to the EU falls. 9) Choose ALL that apply. A weaker U.S. dollar has its advantages: A) makes imported goods and services cheaper.B) makes American exports cheaper.C) increases demand on the U.S. economy.D) makes American exporters happy. 10) Choose ALL that apply. A nation suffering from inflation would have a reason to welcome: A) a wave of foreign investment.B) currency depreciation.C) currency appreciation.D) the inflation-fighting effects of less expensive imports. 11) Choose ALL that apply. A nation suffering from high unemployment would welcome: A) currency depreciationB) effects of less expensive exportsC) A wave of foreign investmentD) currency appreciation 12) Choose ALL that apply. Some of the forces working against freer global trade are: A) strategic trade policy by national governments.B) the support of environmental and labor groups.C) bi-lateral trade agreements.D) industries that are at a comparative advantage. 13) Choose ALL that apply. The global movement toward generally freer trade: A) is supported by all sectors of each trading nation.B) threatens established livelihoods and ways of life.C) offers gains from trade to all trading nations.D) allows for sustained trade deficits by some nations.

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1.) Here are alternate outputs from one day's labor input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA: A) should export textiles to India.B) has a comparative advantage in the production of textiles.C) has an absolute advantage over India in the production of wheatD) has an absolute advantage over India in the production of textiles. 2.) Say that Aliceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 16 units of food per year or 8 units of clothing. Which of the following is true? A) Aliceland has an absolute advantage, but not comparative advantage, in producing food.B) Georgeland has both a comparative and absolute advantage in producing clothing.C) Aliceland has a comparative advantage, but not an absolute advantage, in producing food.D) Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing. 3.) When the world price of some good is above the domestic price (before trade), then after trade, that nation will likely be: A) exporting that item and importing whatever it produces at an absolute disadvantage.B) importing that item and exporting whatever it produces at an absolute advantage.C) importing that item and exporting whatever it produces at a comparative advantage.D) exporting that item and importing whatever it produces at a comparative disadvantage. 4.) Choose ALL that apply. Which of the following phenomena can a nation expect when it opens (more widely) to international trade? A) Prices will rise.B) Prices will fall.C) Some industries will prosper and expand.D) Some industries will suffer and shrink. 5.) Assume that the US produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. A tariff imposed by the US government on mangoes from India will: A) Keep the price of mangoes the same in the US, and increase the quantity of mangoes.B) Lower the price of mangos in the US, and lower the quantity of mangoes sold in the US.C) Increase the price of mangoes in the US, and lower the quantity of mangoes sold in the US. 6) Choose ALL that apply. Why are some economists concerned about the proliferation of regional trade agreements? A) Regional trade agreements make the economies of partner nations more independent of each other.B) Regional trade agreements may limit trade from outside the regions in agreement.C) Regional trade agreements terms can conflict with those of the WTO. 7) Choose ALL that apply. Refer to the video on the US-South Korea free trade agreement. When Free Trade Agreements are negotiated,: A) Some firms have greater access to export markets.B) Some firms that sell domestically produced products may be harmed.C) consumers necessarily gain as firms lower the price of tariffed products. 8) If the value of the Euro appreciates compared to the Dollar, what is logical outcome for US exports to the EU? A) The amount of exports to the EU rises.B) Nothing.C) The amount of exports to the EU falls. 9) Choose ALL that apply. A weaker U.S. dollar has its advantages: A) makes imported goods and services cheaper.B) makes American exports cheaper.C) increases demand on the U.S. economy.D) makes American exporters happy. 10) Choose ALL that apply. A nation suffering from inflation would have a reason to welcome: A) a wave of foreign investment.B) currency depreciation.C) currency appreciation.D) the inflation-fighting effects of less expensive imports. 11) Choose ALL that apply. A nation suffering from high unemployment would welcome: A) currency depreciationB) effects of less expensive exportsC) A wave of foreign investmentD) currency appreciation 12) Choose ALL that apply. Some of the forces working against freer global trade are: A) strategic trade policy by national governments.B) the support of environmental and labor groups.C) bi-lateral trade agreements.D) industries that are at a comparative advantage. 13) Choose ALL that apply. The global movement toward generally freer trade: A) is supported by all sectors of each trading nation.B) threatens established livelihoods and ways of life.C) offers gains from trade to all trading nations.D) allows for sustained trade deficits by some nations.

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