North Eastern University > ECON 1116 chap 20 ECONOMICS 1116 (ALREADY GRADED A)

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1. Which nation had the largest share of world exports in 2011? A. Japan B. Germany C. China D. United States 2. Which of the following countries had the smallest share of exports ... as a percentage of GDP in 2011? A. Canada B. France C. United Kingdom D. United States 3. Which country is the United States' largest trading partner in terms of volume of trade? A. Mexico B. Japan C. China D. Canada 4. What other economic process needs to accompany international trade, for nations to benefit from such trade? A. Specialization in production B. Nationalization of industries C. Regulation of production and trade D. Spreading out of resources in more industries 5. The slopes of the production possibilities curves for two nations reflect the: A. Relative prices of the resources in the two nations B. Amounts of imports and exports of the two nations C. Average income levels in the two nations D. Opportunity costs of production in the two nations 6. If Nation A requires more resources to produce each bale of cloth than Nation B does, then we say that: A. Nation A has the absolute advantage over Nation B in producing cloth B. Nation B has the absolute advantage over Nation A in producing cloth C. Nation A has the comparative advantage over Nation B in producing cloth D. Nation B has the comparative advantage over Nation A in producing cloth 7. Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____: A. Comparative advantage; resource endowments . Absolute advantage; comparative advantage C. Absolute advantage; resource endowments D. Comparative advantage; absolute advantage 8. The ratio at which nations will exchange one product for another is known as the: A. Exchange rate B. Discount rate C. Terms of trade D. Balance of trade 9. Specialization and trade between individuals or between nations leads to: A. Greater self-sufficiency B. Higher product prices C. Higher utilization of resources D. Higher total output 10. In a two-nation two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have: A. No comparative advantage over the other nation B. A comparative advantage in one good and a comparative disadvantage in the other good C. No absolute advantage over the other nation D. An absolute advantage in one good and an absolute disadvantage in the other good 11. If the United States government were to impose a quota on wristwatches imported from Switzerland, then the: A. Price of wristwatches in the United States would decrease and total quantity consumed (domestic and imported) will increase B. Prices of wristwatches in Switzerland would rise and that's how Switzerland would be hurt by the quota C. Price of wristwatches in the United States would remain the same, but the quantity will fall as imports fall D. Total quantity of wristwatches (domestic and imported) purchased would decline as prices rise 12. The imposition of a tariff on a product is least likely to result in a(n): A. Increase in the efficiency in the domestic industry producing the product B. Increase in the price of the product C. Decrease in the quantity of imports D. Decrease in the real incomes of workers in other industries 13. If a nation imposes a tariff on an imported product, then the nation will experience a(n): A. Decrease in total supply and an increase in the price of the product B. Decrease in demand and a decrease in the price of the product C. Decrease in supply of, and an increase in demand for, the product D. Increase in supply of, and a decrease in demand for, the product 14. The use of tariffs and quotas for trade protection results in: A. Lower prices for domestic consumers B. Less revenue for government C. Less efficiency in the economy D. Less rent-seeking activity [Show More]

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