Question 1

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Accepted Answer

A) True 
 B)False

Question 2

If the rate of exchange for a pound is $4,the rate of exchange for the dollar is:

Accepted Answer

A)   ¼ pound.
B)   4 pounds.
C)   $.25.
D)   $1.00.If 1 pound = $4,$1 = 1/4 pound.E) A) and D)
F) All of the above

Question 3

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Accepted Answer

A) True 
 B)False

Question 4

Suppose the world economy is composed of just two countries: A and B.Each can produce steel or chemicals but at different levels of economic efficiency.The domestic production possibilities curves are shown in the graphs below  Refer to the above graphs and information.The opportunity costs of producing steel and chemicals in the two countries are:

Accepted Answer

A)   increasing in each nation.
B)   decreasing in each nation.
C)   the same in each nation.
D)   different across nations.E) All of the above
F) A) and B)

Question 5

In considering yen and dollars,when the dollar rate of exchange for the yen rises:

Accepted Answer

A)   the yen rate of exchange for the dollar will fall.
B)   the yen rate of exchange for the dollar will also rise.
C)   the yen rate of exchange for the dollar may either fall or rise.
D)   U.S.net exports to Japan will fall.E) C) and D)
F) B) and C)

Question 6

The chemical industry is highly capital-intensive.

Accepted Answer

A) True 
 B)False

Question 7

The following are hypothetical exchange rates: $1 = 140 yen;1 Swiss franc = $.10.We can conclude that:

Accepted Answer

A)   1 yen = 280 Swiss francs.
B)   1 yen = 14 Swiss francs.
C)   1 Swiss franc = 28 yen.
D)   1 Swiss franc = 14 yen.If $1 = 140 yen,then $.10 = 14 yen.Since 1 Swiss franc = $.10,1 Swiss franc also = 14 yen.E) A) and C)
F) A) and B)

Question 8

Exports and imports as a percentage of GDP are greater in Germany than the United States.

Accepted Answer

A) True 
 B)False

Question 9

Foreign exchange rates refer to the:

Accepted Answer

A)   price at which purchases and sales of foreign goods take place.
B)   movement of goods and services from one nation to another.
C)   price of one nation's currency in terms of a second nation's currency.
D)   difference between exports and imports in a particular nation.E) A) and B)
F) None of the above

Question 10

Specialization is less than complete among nations because opportunity costs normally rise as more of a particular good is produced.

Accepted Answer

A) True 
 B)False

Question 11

If the relative costs of producing two goods differ in two countries,international trade will be mutually advantageous.

Accepted Answer

A) True 
 B)False

Question 12

The World Trade Organization was established by the United States to advocate strategic trade policy.

Accepted Answer

A) True 
 B)False

Question 13

Which country is the United States' most important trading partner?

Accepted Answer

A)   Germany
B)   Japan
C)   China
D)   CanadaE) A) and C)
F) A) and B)

Question 14

Trade between individuals and between nations leads to:

Accepted Answer

A)   greater self-sufficiency.
B)   higher product prices.
C)   lower living standards.
D)   increased specialization.E) A) and C)
F) C) and D)

Question 15

Answer the next question on the basis of the following table,which indicates the dollar price of libras,the currency used in the hypothetical nation of Libra.Assume that a system of freely floating exchange rates is in place.  Suppose that Libra decided to import more U.S.products.We would expect the quantity of libras:

Accepted Answer

A)   demanded at each dollar price to rise and the dollar to depreciate relative to the libra.
B)   demanded at each dollar price to fall and the dollar to appreciate relative to the libra.
C)   supplied at each dollar price to rise and the dollar to appreciate relative to the libra.
D)   supplied at each dollar price to fall and the dollar to depreciate relative to the libra.E) B) and C)
F) B) and D)

Question 16

In 2009,the United States provides about 8.5 percent of the world's exports.

Accepted Answer

A) True 
 B)False

Question 17

The World Trade Organization advocates new protections for intellectual property such as copyrights.

Accepted Answer

A) True 
 B)False

Question 18

Tariffs discourage imports and encourage exports.

Accepted Answer

A) True 
 B)False

Question 19

A nation will import a particular product if the world price is less than the domestic price.

Accepted Answer

A) True 
 B)False

Question 20

If country A has a higher opportunity cost of producing good X than country B,then country:

Accepted Answer

A)   B should impose a tariff on the exports of product X.
B)   B has a comparative advantage in the production of product X.
C)   A should impose a tariff on the imports of product X.
D)   A has a comparative advantage in the production of product X.E) C) and D)
F) A) and C)

Exam 13: International Trade and Exchange Rates

The chemical industry is highly capital-intensive.

Correct Answer
verified

Tariffs discourage imports and encourage exports.

Correct Answer
verified

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Correct Answer
verified

Trade between individuals and between nations leads to:

Correct Answer
verified

A nation will import a particular product if the world price is less than the domestic price.

Correct Answer
verified

If the rate of exchange for a pound is $4,the rate of exchange for the dollar is:

Correct Answer
verified

If the relative costs of producing two goods differ in two countries,international trade will be mutually advantageous.

Correct Answer
verified

Correct Answer
verified

If country A has a higher opportunity cost of producing good X than country B,then country:

Correct Answer
verified

Specialization is less than complete among nations because opportunity costs normally rise as more of a particular good is produced.

Correct Answer
verified

Correct Answer
verified

The following are hypothetical exchange rates: $1 = 140 yen;1 Swiss franc = $.10.We can conclude that:

Correct Answer
verified

In 2009,the United States provides about 8.5 percent of the world's exports.

Correct Answer
verified

In considering yen and dollars,when the dollar rate of exchange for the yen rises:

Correct Answer
verified

The World Trade Organization advocates new protections for intellectual property such as copyrights.

Correct Answer
verified

Foreign exchange rates refer to the:

Correct Answer
verified

Which country is the United States' most important trading partner?

Correct Answer
verified

The World Trade Organization was established by the United States to advocate strategic trade policy.

Correct Answer
verified

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Correct Answer
verified

Exports and imports as a percentage of GDP are greater in Germany than the United States.

Correct Answer
verified

Exam 13: International Trade and Exchange Rates

The chemical industry is highly capital-intensive.

Correct AnswerverifiedShow Answer

Tariffs discourage imports and encourage exports.

Correct AnswerverifiedShow Answer

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Correct AnswerverifiedShow Answer

Trade between individuals and between nations leads to:

Correct AnswerverifiedShow Answer

A nation will import a particular product if the world price is less than the domestic price.

Correct AnswerverifiedShow Answer

If the rate of exchange for a pound is $4,the rate of exchange for the dollar is:

Correct AnswerverifiedShow Answer

If the relative costs of producing two goods differ in two countries,international trade will be mutually advantageous.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If country A has a higher opportunity cost of producing good X than country B,then country:

Correct AnswerverifiedShow Answer

Specialization is less than complete among nations because opportunity costs normally rise as more of a particular good is produced.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following are hypothetical exchange rates: $1 = 140 yen;1 Swiss franc = $.10.We can conclude that:

Correct AnswerverifiedShow Answer

In 2009,the United States provides about 8.5 percent of the world's exports.

Correct AnswerverifiedShow Answer

In considering yen and dollars,when the dollar rate of exchange for the yen rises:

Correct AnswerverifiedShow Answer

The World Trade Organization advocates new protections for intellectual property such as copyrights.

Correct AnswerverifiedShow Answer

Foreign exchange rates refer to the:

Correct AnswerverifiedShow Answer

Which country is the United States' most important trading partner?

Correct AnswerverifiedShow Answer

The World Trade Organization was established by the United States to advocate strategic trade policy.

Correct AnswerverifiedShow Answer

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Correct AnswerverifiedShow Answer

Exports and imports as a percentage of GDP are greater in Germany than the United States.

Correct AnswerverifiedShow Answer

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