Question 1

The United States currently enforces an embargo against

Accepted Answer

A)  Cuba
B)  Saudia Arabia
C)  The European Union
D)  a) and b) only
E)  All of the above

Question 2

Assuming everything else constant,an increase in the demand for Russian rubles will

Accepted Answer

A)  Reduce the price of rubles
B)  Increase the exchange rate for rubles
C)  Cause a surplus of rubles
D)  Reduce exports to Russia
E)  All of the above

Question 3

The World Trade Organization,or WTO,has been unpopular with many environmentalists because

Accepted Answer

A)  It produces a great deal of pollution
B)  It does not do enough in its activities to enforce pollution regulations
C)  It is allowing pollution rights licenses to be sold by nations to one another
D)  It encourages developing nations to emphasize jobs at the expense of environment
E)  The WTO does not have a pollution control agency

Question 4

Which of the following demands Kenyan Shillings?

Accepted Answer

A)  U.S.importers of Kenyan goods
B)  U.S.investors in Kenya
C)  U.S.tourists visiting Kenya
D)  All of the above
E)  None of the above

Question 5

Which organization is charged with settlement of international trade disputes?

Accepted Answer

A)  The WTO
B)  The EU
C)  NAFTA
D)  GATT
E)  The UN

Question 6

Suppose that on Mars,Martians must give up 2 widgets to produce 1 gadget.On Venus,Venusians must give up ½ widget to produce 1 gadget.Which of the following is true?

Accepted Answer

A)  Venus has a comparative advantage in gadgets
B)  Mars has a comparative disadvantage in gadgets
C)  Venus should specialize in gadgets and trade with Mars for widgets
D)  Mars should specialize in widgets and trade with Venus for gadgets
E)  All of the above

Question 7

Everyone in the economy benefits from free tradE.

Accepted Answer

A) True 
 B)False

Question 8

In terms of the value of jobs saved,the voluntary restrictions on Japanese cars imported to the U.S.in the early 1980s were efficient.

Accepted Answer

A) True 
 B)False

Question 9

Why is international trade important? International trade

Accepted Answer

A)  Increases the variety and availability of consumer goods in an economy
B)  Expands the production possibilities of a nation's economy
C)  Increases an economy's GDP
D)  Allows nations to specialize in the production of goods according to comparative advantage
E)  Does all of the above

Question 10

The Following Questions Refer to the graph below. 1B C) CB D) C1B E) CC1" class="answers-bank-image d-inline" rel="preload" >
-Without trade,the Republic of Alpha's production possibilities curve is AB.With no trade,Alpha's consumption possibilities curve is

Accepted Answer

A)  AB
B)  A1B
C)  CB
D)  C1B
E)  CC1

Question 11

What have researchers concluded about the net effect of NAFTA on the number of jobs in the U.S.economy?

Accepted Answer

A)  NAFTA has increased the number of U.S.jobs
B)  NAFTA has had no effect on the number of U.S.jobs
C)  NAFTA has significantly reduced the number of U.S.jobs
D)  The number of U.S.jobs has increased in some sectors of the economy,while in other sectors it has reduced the number of jobs
E)  No one has examined this issue yet

Question 12

International trade makes it possible for an economy to shift its production possibilities curve outwarD.

Accepted Answer

A) True 
 B)False

Question 13

To preserve jobs in the U.S.,the U.S.should enact legislation lowering the quantities of Japanese autos that it imports.

Accepted Answer

A) True 
 B)False

Question 14

The European Union is an example of a(n)

Accepted Answer

A)  Free trade area
B)  International trade consortium
C)  Customs union
D)  Trade pact area
E)  Cartel of nations

Question 15

The Following Questions Refer to the graph below. 1 A) Imposes a price floor B) Results in a balance of payments problem C) Will increase British demand for U.S.exports D) Will increase U.S.demand for British imports E) Will do all of the above" class="answers-bank-image d-inline" rel="preload" >
-If D and S are the relevant demand and supply curves,pegging the exchange rate at r1

Accepted Answer

A)  Imposes a price floor
B)  Results in a balance of payments problem
C)  Will increase British demand for U.S.exports
D)  Will increase U.S.demand for British imports
E)  Will do all of the above

Question 16

The Following Questions Refer to the graph below. 
-In equilibrium,the price of a U.S.dollar,in terms of British pounds,is

Accepted Answer

A)  $1.50
B)  $1.25
C)  $.8
D)  $.67
E)  None of the above

Question 17

The intent of an embargo is to raise the price of a country's exports.

Accepted Answer

A) True 
 B)False

Question 18

Pegging the exchange for French francs below its equilibrium level will generate a shortage of francs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about NAFTA is FALSE?

Accepted Answer

A)  NAFTA is a free trade zone and not a customs union
B)  Canada,Mexico,and the U.S.are the only three members of NAFTA
C)  It is difficult to empirically measure the economic effects of NAFTA on the U.S.economy
D)  In the long run,NAFTA will increase the number of low-paid jobs in the U.S
E)  NAFTA is based on the belief that nations,in the aggregate,gain economically from free international trade

Question 20

What should happen once the euro has been completely integrated into the economies of the European Union (EU) ?

Accepted Answer

A)  International trade between EU members will increase due to lower transaction costs of trade
B)  Consumer prices will increase and income will fall
C)  Trade between EU members will decrease due to the increased costs of using a multi-national currency
D)  EU members will only trade with other members and stop trading with the rest of the world
E)  None of the above

Exam 10: Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Which of the following demands Kenyan Shillings?

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The Following Questions Refer to the graph below. -If D and S are the relevant demand and supply curves,pegging the exchange rate at r1

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -In equilibrium,the price of a U.S.dollar,in terms of British pounds,is

Correct AnswerverifiedShow Answer

Which of the following statements about NAFTA is FALSE?

Correct AnswerverifiedShow Answer

Suppose that on Mars,Martians must give up 2 widgets to produce 1 gadget.On Venus,Venusians must give up ½ widget to produce 1 gadget.Which of the following is true?

Correct AnswerverifiedShow Answer

Why is international trade important? International trade

Correct AnswerverifiedShow Answer

International trade makes it possible for an economy to shift its production possibilities curve outwarD.

Correct AnswerverifiedShow Answer

What should happen once the euro has been completely integrated into the economies of the European Union (EU) ?

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Which organization is charged with settlement of international trade disputes?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Without trade,the Republic of Alpha's production possibilities curve is AB.With no trade,Alpha's consumption possibilities curve is

Correct AnswerverifiedShow Answer

The European Union is an example of a(n)

Correct AnswerverifiedShow Answer

Assuming everything else constant,an increase in the demand for Russian rubles will

Correct AnswerverifiedShow Answer

The World Trade Organization,or WTO,has been unpopular with many environmentalists because

Correct AnswerverifiedShow Answer

To preserve jobs in the U.S.,the U.S.should enact legislation lowering the quantities of Japanese autos that it imports.

Correct AnswerverifiedShow Answer

Pegging the exchange for French francs below its equilibrium level will generate a shortage of francs.

Correct AnswerverifiedShow Answer

In terms of the value of jobs saved,the voluntary restrictions on Japanese cars imported to the U.S.in the early 1980s were efficient.

Correct AnswerverifiedShow Answer

What have researchers concluded about the net effect of NAFTA on the number of jobs in the U.S.economy?

Correct AnswerverifiedShow Answer

The United States currently enforces an embargo against

Correct AnswerverifiedShow Answer

Everyone in the economy benefits from free tradE.

Correct AnswerverifiedShow Answer

The intent of an embargo is to raise the price of a country's exports.

Correct AnswerverifiedShow Answer

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The Following Questions Refer to the graph below. -If D and S are the relevant demand and supply curves,pegging the exchange rate at r¹

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