Exam 21: International Trade and Finance

According to the principle of comparative advantage,total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?

Suppose the United States decides to impose a $1,000 tax on every Japanese minivan sold in the United States.This is an example of:

Which of the following is the best example of a quota?

If the dollar appreciates (becomes stronger)this causes:

If a country has a comparative advantage in oil,then this means that the opportunity cost of producing oil is:

A country should export the goods in which it has an absolute advantage.

Since World War II,tariff reductions have occurred in large part because of negotiations under the:

If a nation follows a policy of being self-sufficient,its:

If the United States were to adopt a policy of free trade with European countries and Japan,this policy would:

A basic problem with the infant-industry argument is that:

Exhibit 21-6 Dollars per British pound -In Exhibit 21-6,the equilibrium exchange rate is:

If a hotel room priced at 120,000 Venezuela bolivar per night can be purchased for 80 U.S.dollars,the exchange rate is:

"More productive workers receive higher wages than less productive workers." This observation is a major flaw in which of the following arguments for protectionism?

If one country can produce a good with fewer resources than another country,this is called:

Exhibit 21-1 Production possibilities curves -In Exhibit 21-1,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:

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

Exhibit 21-1 Production possibilities curves -In Exhibit 21-1,the production possibilities curves of wheat and corn for Nabia and Pada are presented.In Pada the cost of producing one more unit of corn is equal to:

Exhibit 21-6 Dollars per British pound -In Exhibit 21-6,the exchange rate will have no tendency to change when it is equal to:

A tax on an imported good is called:

Exhibit 21-3 Potatoes and wheat output (tons per day) -If each nation in Exhibit 21-3 specializes in producing the good for which it has a comparative advantage,then: