Economics End of Year Final

49 terms by MaryssaM

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Sample Test 4

C

On the basis of the above information...

D

Refer to the above data. Assume that before specialization and trade Gamma and Sigma both chose production possibility "C". Now if each specializes according to comparative advantage, the gains from specialization and trade will be...

A

If country A can produce both goods X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B...

B

The terms of trade reflect the...

B

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that...

B

In the theory of comparative advantage, a good should be produced in that nation where...

D

Refer to the above diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curve. The opportunity cost of producing a...

C

The fact that international specialization and trade based on comparative advantage can increase world output is reflected in the fact that...

D

Free trade based on comparative advantage is economically beneficial because...

B

The "gain" from international trade is...

A

In the real world, specialization is rarely complete because...

B

If an American importer can purchase 10,000 pounds for $20,000, the rate of exchange...

A

An import quota

A

The U.S. passes a 50 percent tax on imports of Danish cheese. This is an example of...

C

Refer to the graph above. We can conclude from the diagram that...

A

Refer to the graph above. We would expect that if the two countries trade with each other (and neither trades with the rest of the world)...

C

If nation X can manufacture more computers in a year than nation Y using the same amount of resources, nation Y has...

C

A quota differs from a tariff in that...

B

Country A's cost of widgets is $4.00 and the cost of wadgets is $8.00. Country B's cost of widgets is 8 francs and the cost of wadgets is 16 francs. Which of the following would you suggest?

C

Suppose that in country A the opportunity cost of producing 1 bushel of barley is equal to 2 bushels of soy beans. In country B the opportunity cost of producing 1 bushel of barley is equal to 4 bushels of soy beans. Then...

C

If country A can produce all goods cheaper than country B...

A

Suppose the U.S. can produce chachas at $5 a piece and chachis at $10, while Nepal can produce chachas at 100 rupees a piece and chachis at 150 rupees a piece...

A

In 1994, the United States would not allow more than a certain number of underwear to be imported from Costa Rica. This is an example of a...

D

The market where one currency can be exchanged for another is called...

A

An important way in which international trade differs from domestic trade is...

C

If country A can produce all goods cheaper than country B...

C

Refer to the table above. From this we can conclude...

D

Refer to the table above. From this we can conclude that if the two countries with each other, it is most likely that...

B

Assume that in Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that in the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal...

C

A nation's comparative advantage in the production of an item is determined by...

B

If nations trade on the basis of comparative advantage...

C

Refer to the table above. In Kiribati, the opportunity cost of producing one mango (in terms of coconuts) is...

B

Refer to the table above. In Tuvalu, the opportunity cost of producing one coconut (in terms of mangos) is...

B

Refer to the table above. A comparative advantage in the production of mangos is held by...

A

Refer to the table above. A comparative advantage in the production of coconuts is held by...

C

All of the following are arguments in support of protectionist legislation except...

B

One reason trade restrictions exist is that...

B

The argument that with initial protection an industry will eventually become competitive is called the...

B

A tax on an imported good is...

D

An import quota...

B

An import quota does which of the following?

A

An important quota...

C

A quota differs from a tariff in that

C

Since Fidel Castro assumed power in Cuba, the U.S. has not allowed U.S. citizens to trade with Cuba. This is an example of...

A

If a nation has________ in the production of an item, it can produce_____ of the item for a given quantity of resources than can other nations.

C

Globally, which nation accounts for the largest volume of exports and imports together?

D

Proponents of free trade argue that free international trade and investment will...

D

The World Trade Organization (WTO) and the earlier General Agreement on Tariffs and Trade (GATT) are international efforts to reduce trade barriers and encourage free trade. As a result of these...

A

The primary benefits of international trade include...

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