Exam 9: Comparative Advantage, Exchange Rates, and Globalization

Refer to the table shown. From this table we can conclude that: Cost (in euras) of praducing wine and on electric gener ator France Germany Wine 10 20 Electric Generator 10,000 30,000

When a country runs a trade deficit, it does so by:

People with intellectual property rights are on the low end of the income distribution that is created from globalization.

Suppose that the U.S. dollar buys 100 Japanese yen. Gold costs $500 per ounce in New York and 20,000 yen per ounce in Tokyo. What does the law of one price predict will happen?

Production Possibility Schedules for Two South Pacific Island Nations Kiribati Tuvalu Mangues Cocanuts Mangues Cacanuts 300 0 1,200 0 200 400 800 1,200 100 800 400 2,400 0 1,200 0 3,600 In Tuvalu, the opportunity cost of producing one coconut (in terms of mangoes)is:

One of the 10 sources of U.S. comparative advantage mentioned in the text is:

The loss of jobs due to international trade is often:

Globalization represents:

The demand for euros on foreign exchange markets slopes:

Workers in education, healthcare and government sectors have:

When a country runs a trade surplus, it will:

What is meant by the dollar-euro exchange rate? In what market is this rate determined? What factors will cause the dollar value of the euro to rise? What factors will cause the dollar value of the euro to fall?

If the world supply curve is S_W1,

Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share. From this information, what would economists strongly suspect about this industry?

Why does the distribution of costs and benefits from trade sometimes result in calls for trade restrictions?

A common economically unfounded fear held by laypeople is that:

Which of the following statements correctly summarizes a difference between the layperson's and the economist's views of the net benefits of trade?

Which of the following is eroding the U.S. comparative advantage?

Production Possibility Schedules for Two South Pacific Island Nations Kiribati Tuvalu Mangues Cocanuts Mangues Cacanuts 300 0 1,200 0 200 400 800 1,200 100 800 400 2,400 0 1,200 0 3,600 In Kiribati, the opportunity cost of producing one mango (in terms of coconuts)is:

The Mexican demand for American goods leads to the demand for: