Exam 15: International Trade and Finance

Exhibit 15-4 Coffee and tea output (pounds per hour) Country Coffee T ea Brazil 10 5 China 8 8 -As shown in Exhibit 15-4, the opportunity cost to Brazil of producing one pound of coffee is:

Tariffs help consumers by lowering the price of imported goods.

The current account in the BOP records:

An appreciation of one's currency means that:

A restriction on the quantity of a good that can be imported into a country is a(n):

A tariff is a:

The argument that import restrictions save jobs and promote prosperity fails to recognize that:

Exhibit 15-1 Production possibilities curves -In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. Suppose Nabia produces at point A on its PPC. How many units of wheat is the country able to produce?

Which of the following would not be counted in the U.S. BOP current account?

Exhibit 15-1 Production possibilities curves -In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of wheat is equal to:

Suppose that the Zubians can produce 1000 pounds of flour per hours, or catch 500 pounds of fish per hour. In contrast, the Zirconians can produce 1800 pounds of flour per hour, or catch 300 pounds of fish per hours. What is the comparative advantage of the Zubians?

Exhibit 15-1 Production possibilities curves -In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:

Which of the following is included in the current account?

Suppose you are traveling from the United States to Djibouti on vacation. You would be better off on your vacation if:

If the U.S. dollar appreciates relative to the British pound, then we pay fewer dollars for a pound.

The U.S. supply curve of dollars is upward-sloping because a:

If Japan has a current account surplus, then it must:

If a country has a lower opportunity cost of producing oranges, then this is:

If Dana can paint his house faster than Luke, a professional house painter, then:

The balance of payments ____.