Question 1

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

Accepted Answer

A) True 
 B)False

Question 2

If a country has a comparative advantage in producing a product,it must also have an absolute advantage in producing that product.

Accepted Answer

A) True 
 B)False

Question 3

The United States is a leading exporter of wheat.What explains the comparative advantage of the United States in wheat production?

Accepted Answer

A) positive externalities 
B) investment by multinational firms such as Archer-Daniels-Midland and the Tyson Foods Inc. 
C) climate and soil conditions in the United States which are well-suited for wheat production 
D) a large supply of unskilled labor 
A) positive externalities 
B) investment by multinational firms such as Archer-Daniels-Midland and the Tyson Foods Inc. 
C) climate and soil conditions in the United States which are well-suited for wheat production 
D) a large supply of unskilled labor

Question 4

Domestically produced goods and services sold to other countries are referred to as

Accepted Answer

A) exports. 
B) imports. 
C) transfer payments. 
D) capital outflow. 
A) exports. 
B) imports. 
C) transfer payments. 
D) capital outflow.

Question 5

Globalization is the process of countries imposing trade restrictions on other countries.

Accepted Answer

A) True 
 B)False

Question 6

What does it mean for a country to have a comparative advantage in producing a product?

Accepted Answer

A country has a comparative ad

Question 7

Figure 19-10
  
-Refer to Figure 19-10.The depreciation of the dollar is represented as a movement from ________.

Accepted Answer

A) B to A 
B) D to C 
C) B to C 
D) A to C 
E) A to B 
A) B to A 
B) D to C 
C) B to C 
D) A to C 
E) A to B

Question 8

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

Accepted Answer

A) the dollar has depreciated. 
B) the dollar has appreciated. 
C) the British pound has depreciated. 
D) the British pound has stayed constant in value. 
A) the dollar has depreciated. 
B) the dollar has appreciated. 
C) the British pound has depreciated. 
D) the British pound has stayed constant in value.

Question 9

Table 19-12
Production and
Consumption Production
Without Trade With Trade
 $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Swards } & \text { Beltr } & & \text { Svards } & \text { Beltr } \
\hline \text { Estoria } & 100 & 50 && 200 & 0 \
\hline \text { Morocco } & 50 & 40 && 0 & 120 \
\hline
\end{array}$$ 
Estonia and Morocco can produce both swords and belts.Table 19-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded,how many swords will Morocco gain compared to the "without trade"numbers?

Accepted Answer

A) 5 
B) 45 
C) 105 
D) 150 
A) 5 
B) 45 
C) 105 
D) 150

Question 10

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Accepted Answer

The anti-globalization argument against

Question 11

Table 19-12
Production and
Consumption Production
Without Trade With Trade
 $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Swards } & \text { Beltr } & & \text { Svards } & \text { Beltr } \
\hline \text { Estoria } & 100 & 50 && 200 & 0 \
\hline \text { Morocco } & 50 & 40 && 0 & 120 \
\hline
\end{array}$$ 
Estonia and Morocco can produce both swords and belts.Table 19-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.Which country has a comparative advantage in producing swords?

Accepted Answer

A) Estonia 
B) Morocco 
C) both countries 
D) neither country 
A) Estonia 
B) Morocco 
C) both countries 
D) neither country

Question 12

Explain and show graphically the effect of a decrease in U.S.budget deficits that decrease U.S.interest rates on the demand and supply of U.S.dollars for euros.

Accepted Answer

A decrease in U.S.interest rates would d

Question 13

Figure 19-2
   
Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff.
-Refer to Figure 19-2.The tariff revenue collected by the government equals the area

Accepted Answer

A) D + E + F. 
B) E. 
C) B + D + E + F. 
D) C + D + E + F. 
A) D + E + F. 
B) E. 
C) B + D + E + F. 
D) C + D + E + F.

Question 14

Prior to the 1998 World Cup,France banned the use of all soccer balls made by child workers.Several economists criticized the ban.Which of the following is an argument these economists used to justify the use of child labor in some countries?

Accepted Answer

A) Soccer balls are easy to carry and workers were given soccer balls to play with. 
B) Child workers were allowed to attend school during the periods they worked. 
C) Child workers were given gloves to protect their hands while they stitched soccer balls. 
D) Some of the alternatives to stitching soccer balls include begging and prostitution. 
A) Soccer balls are easy to carry and workers were given soccer balls to play with. 
B) Child workers were allowed to attend school during the periods they worked. 
C) Child workers were given gloves to protect their hands while they stitched soccer balls. 
D) Some of the alternatives to stitching soccer balls include begging and prostitution.

Question 15

Goods and services bought domestically but produced in other countries are referred to as

Accepted Answer

A) exports. 
B) imports. 
C) transfer payments. 
D) foreign consumption. 
A) exports. 
B) imports. 
C) transfer payments. 
D) foreign consumption.

Question 16

Figure 19-2
   
Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff.
-Refer to Figure 19-2.The tariff causes domestic consumption of rice

Accepted Answer

A) to fall by 27 million pounds. 
B) to fall by 11 million pounds. 
C) to rise by 6 million pounds. 
D) to rise by 16 million pounds. 
A) to fall by 27 million pounds. 
B) to fall by 11 million pounds. 
C) to rise by 6 million pounds. 
D) to rise by 16 million pounds.

Question 17

Autarky is a situation in which a country

Accepted Answer

A) only exports products. 
B) only imports products. 
C) does not trade with other countries. 
D) has no absolute advantage in any production. 
A) only exports products. 
B) only imports products. 
C) does not trade with other countries. 
D) has no absolute advantage in any production.

Question 18

Which of the following statements is false?

Accepted Answer

A) Japan is less dependent on foreign trade than is the United States. 
B) Imports and exports account for over one-half of the GDP of the Netherlands. 
C) The United States is the leading exporting country, accounting for almost 10 percent of total world exports. 
D) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops. 
A) Japan is less dependent on foreign trade than is the United States. 
B) Imports and exports account for over one-half of the GDP of the Netherlands. 
C) The United States is the leading exporting country, accounting for almost 10 percent of total world exports. 
D) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops.

Question 19

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

Accepted Answer

A) abundant supplies of natural resources. 
B) a favorable climate. 
C) a strong central government. 
D) technology. 
A) abundant supplies of natural resources. 
B) a favorable climate. 
C) a strong central government. 
D) technology.

Question 20

Autarky is a situation where one country does not trade with other countries.

Accepted Answer

A) True 
 B)False

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

If a country has a comparative advantage in producing a product,it must also have an absolute advantage in producing that product.

The United States is a leading exporter of wheat.What explains the comparative advantage of the United States in wheat production?

Domestically produced goods and services sold to other countries are referred to as

Globalization is the process of countries imposing trade restrictions on other countries.

What does it mean for a country to have a comparative advantage in producing a product?

Figure 19-10 -Refer to Figure 19-10.The depreciation of the dollar is represented as a movement from ________.

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Explain and show graphically the effect of a decrease in U.S.budget deficits that decrease U.S.interest rates on the demand and supply of U.S.dollars for euros.

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.The tariff revenue collected by the government equals the area

Prior to the 1998 World Cup,France banned the use of all soccer balls made by child workers.Several economists criticized the ban.Which of the following is an argument these economists used to justify the use of child labor in some countries?

Goods and services bought domestically but produced in other countries are referred to as

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.The tariff causes domestic consumption of rice

Autarky is a situation in which a country

Which of the following statements is false?

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

Autarky is a situation where one country does not trade with other countries.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters

Exam 19: Comparative Advantage, international Trade, and Exchange Rates

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

If a country has a comparative advantage in producing a product,it must also have an absolute advantage in producing that product.

The United States is a leading exporter of wheat.What explains the comparative advantage of the United States in wheat production?

Domestically produced goods and services sold to other countries are referred to as

Globalization is the process of countries imposing trade restrictions on other countries.

What does it mean for a country to have a comparative advantage in producing a product?

Figure 19-10 -Refer to Figure 19-10.The depreciation of the dollar is represented as a movement from ________.

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

Anti-globalization and protectionism are both arguments against free trade.How do these two arguments differ?

Explain and show graphically the effect of a decrease in U.S.budget deficits that decrease U.S.interest rates on the demand and supply of U.S.dollars for euros.

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.The tariff revenue collected by the government equals the area

Prior to the 1998 World Cup,France banned the use of all soccer balls made by child workers.Several economists criticized the ban.Which of the following is an argument these economists used to justify the use of child labor in some countries?

Goods and services bought domestically but produced in other countries are referred to as

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.The tariff causes domestic consumption of rice

Autarky is a situation in which a country

Which of the following statements is false?

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

Autarky is a situation where one country does not trade with other countries.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters