Question 1

In the mind of Adam Smith,what is true if person A voluntarily sells a good or service and person B voluntarily buys it?

Accepted Answer

A) A will benefit but B may or may not benefit. 
B) B will benefit but A may or may not benefit. 
C) Both A and B would benefit. 
D) It is possible that both will benefit or that neither will benefit. 
A) A will benefit but B may or may not benefit. 
B) B will benefit but A may or may not benefit. 
C) Both A and B would benefit. 
D) It is possible that both will benefit or that neither will benefit.

Question 2

Table 13.14 shows the output of kumquats per month.
  
-List four major advantages of free trade.

Accepted Answer

Four major advantages of free trade are:

Question 3

Table 13.14 shows the output of kumquats per month.
  
-Which of the following statements about the impact of the introduction of free trade is correct?

Accepted Answer

A) It results in lower prices for domestic producers. 
B) It results in lower prices for foreign producers. 
C) It results in lower prices for foreign consumers. 
D) It results in higher prices for domestic consumers. 
A) It results in lower prices for domestic producers. 
B) It results in lower prices for foreign producers. 
C) It results in lower prices for foreign consumers. 
D) It results in higher prices for domestic consumers.

Question 4

Figure 9.10 shows the market for cloth in Smith Island.
  
-Refer to Figure 9.10 to answer this question.If Smith Island introduced an import quota of 20,what would be the new price of cloth in Smith Island?

Accepted Answer

A) $55. 
B) $60. 
C) $70. 
D) $90. 
A) $55. 
B) $60. 
C) $70. 
D) $90.

Question 5

What could cause the terms of trade to move in a country's favour?

Accepted Answer

A) If the average price of its exports increases. 
B) If the average price of its imports increases. 
C) If the average price of its exports decreases. 
D) If the costs of transport and insurance falls. 
A) If the average price of its exports increases. 
B) If the average price of its imports increases. 
C) If the average price of its exports decreases. 
D) If the costs of transport and insurance falls.

Question 6

Table 13.14 shows the output of kumquats per month.
  
-Protectionism is the economic policy of protecting domestic producers by putting restrictions on exports.

Accepted Answer

A) True 
 B)False

In the mind of Adam Smith,what is true if person A voluntarily sells a good or service and person B voluntarily buys it?

Table 13.14 shows the output of kumquats per month. -List four major advantages of free trade.

Table 13.14 shows the output of kumquats per month. -Which of the following statements about the impact of the introduction of free trade is correct?

Figure 9.10 shows the market for cloth in Smith Island. -Refer to Figure 9.10 to answer this question.If Smith Island introduced an import quota of 20,what would be the new price of cloth in Smith Island?

What could cause the terms of trade to move in a country's favour?

Table 13.14 shows the output of kumquats per month. -Protectionism is the economic policy of protecting domestic producers by putting restrictions on exports.

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

Filters

Exam 13: International Trade

In the mind of Adam Smith,what is true if person A voluntarily sells a good or service and person B voluntarily buys it?

Table 13.14 shows the output of kumquats per month. -List four major advantages of free trade.

Table 13.14 shows the output of kumquats per month. -Which of the following statements about the impact of the introduction of free trade is correct?

Figure 9.10 shows the market for cloth in Smith Island. -Refer to Figure 9.10 to answer this question.If Smith Island introduced an import quota of 20,what would be the new price of cloth in Smith Island?

What could cause the terms of trade to move in a country's favour?

Table 13.14 shows the output of kumquats per month. -Protectionism is the economic policy of protecting domestic producers by putting restrictions on exports.

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

Filters