Please help with as many you have correct answers for, will give points for thos
ID: 1177916 • Letter: P
Question
Please help with as many you have correct answers for, will give points for those who answer majority and are believed to be correct, thanks for help!
1. Opening trade between nations enables each nation%u2019s consumption possibilities to go beyond the confines of its own production possibilities curve. a. True.
b. False
2. If a nation follows a policy of being self-sufficient, its:
a. production possibilities curve shifts rightward.
b. production possibilities equal its consumption possibilities.
c. consumption possibilities are greater than its production possibilities.
d. consumption possibilities are less than its production possibilities.
3. A country is said to have a comparative advantage in the production of a good when it _____ ______(Select from below) while a country is said to have an absolute advantage in the production of a good when it ____________ (Select from below).
a. can produce the good using fewer resources than another country.
b. it specializes in the production of a good.
c. requires fewer labor hours to produce the good.
d. has the lower opportunity cost of producing the good.
4. Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in: a. automobiles.
b. airplanes.
c. both goods.
d. neither good.
5. If it costs DuPont Chemical more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have: a. lower demand for flaxinate.
b. inefficient markets.
c. a more favorable political environment
d. an absolute advantage in flaxinate production.
6. %u201CFree trade benefits a nation as a whole, but some individuals may _____________________ ______________________________. %u201C (Fill in the blank: be sure to take special notice of the quotation marks.) Source: ____________________________
7. What are three protectionist devices that governments can employ to protect their own domestic producers? List, then define each and lastly CONTRAST (explain the differences) each of the three with the other two.
8. The North American Free Trade Agreement affects trade between:
a. the US, Cuba and Mexico.
b. the US, Canada and Mexico.
c. the US, Bolivia and Peru.
d. Brazil, Canada and Columbia.
9. List and briefly define the four arguments for trade protection?
10. In 2009, the US had a:
a. surplus in both the current account and the capital account.
b. deficit in both the current account and the capital account.
c. current account deficit and capital account surplus. d, current account surplus and capital account deficit.
11. If goods imports are greater than goods exports, the nation is experiencing a:
a. negative balance on current account.
b. goods trade deficit.
c. capital account imbalance.
d. weakening of its currency.
e. growth in foreign reserves.
12. Which of the following transactions would be recorded as a credit in the US current account?
a. A Japanese bank%u2019s purchase of IBM stock.
b. A Japanese consumer%u2019s purchase of an Apple computer.
c. An American tourist's payment to a Japanese hotel.
d. An American consumer%u2019s purchase of a Toshiba VCR.
13. Which of the following would be excluded in the capital account?
a. A Japanese citizen purchases a US Treasury bill.
b. A Japanese citizen purchases an office building in Manhattan.
c. An American citizen purchases a share of stock from a Japanese company.
d. An American purchases a Toyota.
14. In 2009, the US had its greatest trade deficit with ______________. (Name the country.)
15. If a hotel room priced at 120,000 Italian lira per night can be purchased for 80 US dollars, the exchange rate is:
a. 9,600 lira per dollar.
b. 1500 dollars per lira.
c. 1500 lira per dollar.
d. .00066 lira per dollar.
16. In Exhibit 8 of your text, the US supply curve of dollars is upward-sloping because a:
a. higher number of yen per dollar means Japanese goods are cheaper in Japan.
b. higher number of yen per dollar means Japanese goods are cheaper in the US.
c. lower number of yen per dollar means Japanese goods are cheaper in the US. d. none of the above.
17. An appreciation of the US dollar benefits which of the following groups of people? a. All people living in the US.
b. US producers who export farm equipment to other countries.
c. US consumers who buy imported automobiles.
d. Foreigners who wish to travel to the US.
e. US consumers who buy only goods made entirely in the US.
18. A depreciation of one%u2019s currency means that:
a. the country%u2019s exports will become more expensive.
b. the country%u2019s imports will become more expensive.
c. the country%u2019s imports will become less expensive.
19. A shift of the US demand curve for Mexican pesos to the left and a decrease in the pesos price would likely result from:
a. an increase in the US inflation rate relative to the rate in Mexico.
b. a change in US consumers%u2019 tastes away from Mexican products and toward products made in India, South Korea and Taiwan.
c. US buyers perceiving that domestically-produced products are of lower quality than products made in Mexico.
d. all of the above.
20. According to Federal Reserve stats, the Mexican peso per US dollar exchange rate in 2007 was 10.92 and 13.23 as of May 2009. Based on trends in US-Mexican trade balances since 1993, what do you predict is the current trade situation between the two countries? Explain your reasoning in a short paragraph of 4 to 8 sentences.
Explanation / Answer
True.
production possibilities equal its consumption possibilities.
has the lower opportunity cost of producing the good.
airplanes
an absolute advantage in flaxinate production
the US, Canada and Mexico.
current account deficit and capital account surplus
goods trade deficit.
A Japanese bank%u2019s purchase of IBM stock.
An American purchases a Toyota.
China
1500 dollars per lira.
higher number of yen per dollar means Japanese goods are cheaper in the US.
US consumers who buy imported automobiles.
the country%u2019s imports will become more expensive.
a change in US consumers%u2019 tastes away from Mexican products and toward products made in India, South Korea and Taiwan.
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