Question 1

If a nation has an absolute advantage in the production of some commodity,it

Accepted Answer

A)  can gain only if it has a comparative advantage in the commodity. 
B)  may still gain from trade in the commodity. 
C)  cannot gain from trade in the commodity. 
D)  cannot gain unless it has an absolute advantage in every other commodity. 
A)  can gain only if it has a comparative advantage in the commodity. 
B)  may still gain from trade in the commodity. 
C)  cannot gain from trade in the commodity. 
D)  cannot gain unless it has an absolute advantage in every other commodity.

Question 2

The U.S.government uses export subsidies extensively to stimulate exports.

Accepted Answer

A) True 
 B)False

Question 3

A country's comparative advantage can be illustrated by the graph of the production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 4

An essential point,among many,in the refutation of the "cheap foreign labor" argument is that

Accepted Answer

A)  foreign workers have a lower standard of living. 
B)  foreign workers are less productive. 
C)  low foreign wages mean fewer exports for the United States. 
D)  the United States does not benefit from cheap foreign labor so the goods should be kept out. 
A)  foreign workers have a lower standard of living. 
B)  foreign workers are less productive. 
C)  low foreign wages mean fewer exports for the United States. 
D)  the United States does not benefit from cheap foreign labor so the goods should be kept out.

Question 5

Figure 18-6
  
-From the graph in Figure 18-6,the opportunity cost of a unit of bananas is

Accepted Answer

A)  4 units of corn for England; 1/2 unit of corn for Honduras. 
B)  1/4 unit of corn for England; 2 units of bananas in England. 
C)  8 units of corn in England; 3 units of corn in Honduras. 
D)  4 units of corn in England; 12 units of corn in Honduras. 
A)  4 units of corn for England; 1/2 unit of corn for Honduras. 
B)  1/4 unit of corn for England; 2 units of bananas in England. 
C)  8 units of corn in England; 3 units of corn in Honduras. 
D)  4 units of corn in England; 12 units of corn in Honduras.

Question 6

Which of the following is an extreme form of risk associated with investing in a foreign country?

Accepted Answer

A)  Credit risk 
B)  Labor unrest 
C)  Expropriation 
D)  Immigration rules 
A)  Credit risk 
B)  Labor unrest 
C)  Expropriation 
D)  Immigration rules

If a nation has an absolute advantage in the production of some commodity,it

The U.S.government uses export subsidies extensively to stimulate exports.

A country's comparative advantage can be illustrated by the graph of the production possibilities frontier.

An essential point,among many,in the refutation of the "cheap foreign labor" argument is that

Figure 18-6 -From the graph in Figure 18-6,the opportunity cost of a unit of bananas is

Which of the following is an extreme form of risk associated with investing in a foreign country?

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters

Exam 18: International Trade and Comparative Advantage

If a nation has an absolute advantage in the production of some commodity,it

The U.S.government uses export subsidies extensively to stimulate exports.

A country's comparative advantage can be illustrated by the graph of the production possibilities frontier.

An essential point,among many,in the refutation of the "cheap foreign labor" argument is that

Figure 18-6 -From the graph in Figure 18-6,the opportunity cost of a unit of bananas is

Which of the following is an extreme form of risk associated with investing in a foreign country?

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters