Exam 14: Macroeconomics and International Trade

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good. -Robert is a doctor who earns an average hourly wage of $80.His wife is a teacher and earns an average hourly wage of $35.His daughter works in her college library and earns $12 per hour,while his son is a lawyer and earns $60 per hour.If one of them must stay at the house on a working day to look after their ailing pet,who can do it at the lowest opportunity cost?

A country specializes in the production of a good in which it has comparative advantage.What happens once international trade is established?

Mike lives and works as a musician in the United States.However,he sometimes plays in concerts in foreign countries.The money he earns from these concerts are considered ________ in the U.S.current account.

If the price of swords in Winterfell is lower than it is in Kings' Landing before these two regions start trading,we can conclude with certainty that ________.

Jane lives and works in New York.Every month she sends $500 to her mother in London.This is an example of a(n)________.

The table below shows the GDP per capita of four different countries: -Refer to the table above.Which country is likely to have the highest percentage of children between the ages of 7 and 14 who are working?

Suppose a country's net exports equal zero.Which of the following will happen if the volume of exports increases without an increase in the volume of imports?

Steve is a professor of economics at New York State University.He worked in India for a month.The income that he earned from India will be reported as ________ in the U.S.current account.

Scenario: A shoe manufacturer has factories in two countries, Country X and Country Y. Shoe manufacturing involves two main tasks-designing the shoe and stitching it. The value added per hour in each activity by workers in the two countries is shown in the table below. -Refer to the scenario above.The opportunity cost per dollar of value added in designing shoes by workers in Country X is ________.

Scenario: Mike and John work as waiters in a restaurant. Mike can efficiently wait on ten customers per hour, while John can efficiently wait on seven customers per hour. The restaurant also has a bar. If both of them work as bartenders, Mike is able to serve nine customers per hour and John is able to serve ten customers per hour. -Refer to the scenario above.Which of the following statements is true in this case?

Scenario: A country imported goods and services worth $40 billion and exported goods and services worth $37.8 billion during a particular year. -Refer to the scenario above.This scenario implies that the country experienced a ________ during that year.

What is foreign direct investment?

Scenario: A shoe manufacturer has factories in two countries, Country X and Country Y. Shoe manufacturing involves two main tasks-designing the shoe and stitching it. The value added per hour in each activity by workers in the two countries is shown in the table below. -Refer to the scenario above.The opportunity cost per dollar of value added in stitching shoes by workers in Country Y is ________.

Which of the following statements is correct? i.The difference between the value of a country's exports and its imports is known as the trade balance. ii.The difference between the value of a country's exports and its imports is known as net exports.

Which of the following is likely to happen if the government of a country lowers import tariffs?

Mark is a U.S.citizen who is currently working in the United Kingdom.In the official international trade accounts,he is considered a ________.

A tariff is a(n)________.

Scenario: A shoe manufacturer has factories in two countries, Country X and Country Y. Shoe manufacturing involves two main tasks-designing the shoe and stitching it. The value added per hour in each activity by workers in the two countries is shown in the table below. -Refer to the scenario above.Identify the correct statement.

How is foreign direct investment different from other types of international financial flows?

Scenario: There are two workers in a factory that produces two goods, Good X and Good Y. Worker 1 adds a value of $200 per hour in the production of Good X and a value of $100 per hour in the production of Good Y. Worker 2 adds a value of $125 per hour in the production of Good X and a value of $87.50 per hour in the production of Good Y. -Refer to the scenario above.Which of the following is true in this case?