Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Macroeconomics Study Set 43

Business

Quiz 17 :

B: International Trade

Quiz 17 :

B: International Trade

search
arrow
The nation which has a comparative advantage in a particular product will be the only world exporter of that product.
Free
True False
Answer:

Answer:

False

arrow
Import quotas produce the same amount of revenue for government as protective tariffs.
Free
True False
Answer:

Answer:

False

arrow
The law of increasing opportunity costs limits international specialization.
Free
True False
Answer:

Answer:

True

arrow
The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.
True False
Answer:
arrow
Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.If Alpha had produced 20X and 30Y and Beta had produced 30X and 20Y before specialization and trade, then we can say that the gains from specialization and trade are 10X and 10Y.
True False
Answer:
arrow
Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.
True False
Answer:
arrow
Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Alpha should specialize in Y and Beta in X.
True False
Answer:
arrow
The principle of comparative advantage is that total output will be greatest when each good is produced by that nation which has the lowest domestic opportunity cost.
True False
Answer:
arrow
GATT was an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.
True False
Answer:
arrow
Comparative advantage can result from different climates, natural resource endowments, and capital stocks in various countries.
True False
Answer:
arrow
As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.
True False
Answer:
arrow
Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.The terms of trade will be at or within the 1X = 1 1/2 Y to 1X = 2/3 Y range.
True False
Answer:
arrow
Barriers to free trade impair efficiency in the international allocation of resources.
True False
Answer:
arrow
The terms of trade will favour a larger nation over a smaller nation.
True False
Answer:
arrow
A nation will import a particular product if the world price is less than the domestic price.
True False
Answer:
arrow
Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Beta would prefer terms of trade at, or close to, 1X = 1 1/2 Y.
True False
Answer:
arrow
The World Trade Organization was established by Canada to advocate strategic trade policy.
True False
Answer:
arrow
International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.
True False
Answer:
arrow
The World Trade Organization advocates new protections for intellectual property such as copyrights.
True False
Answer:
arrow
Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Alpha would prefer terms of trade at, or close to, 1X = 2/3 Y.
True False
Answer:
Showing 1 - 20 of 188