Exam 19: International Trade and Finance

Which of the following is an infant-industry argument in favour of restrictions on foreign trade?

In order for an investment to exceed domestic saving, a country:

The current account balance on goods and services is:

The balance of payments _____.

It is possible for a nation to have an absolute advantage in the production of a product, but not a comparative advantage in the production of the same product.

If the Australian dollar depreciates, the effect of this is likely to be:

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

The national security argument for tariff protection is based on the need to:

Which is not a common argument for protecting the domestic industry?

International trade allows a country to consume a combination of goods that lies only inside its production possibility frontier.

The idea that countries should only reduce their own tariffs if other countries reduce theirs is an argument put forward by those who favour:

Which of the following suggest Australia's current account deficit may not be a problem?

The principal objective of the WTO is to:

Australia's net foreign liabilities are likely to become a problem if:

Free trade agreement between Australia and New Zealand is called:

The purpose of tariffs is to:

Free trade often has its critics because the benefits are spread over most of the population and go largely unnoticed.

If income in Australia falls while income in the UK rises, it is likely that:

A country should reduce its barriers to import from another country if the other country:

Narrbegin Exhibit 18.4 Dollars per British pound Quantity demanded Dollars per pound Quantity supplied 200 5 600 240 4 480 300 3 410 360 2 360 390 1 330 -In Exhibit 18.4, the equilibrium exchange rate is: