14. a significant advantage to being a member of a trade bloc is: a. reduced or

ID: 1209836 • Letter: 1

Question

14. a significant advantage to being a member of a trade bloc is:

a. reduced or eliminated tariffs among member countries

b.higher tariff collections from member countries

c.reduced tariff rates only for the largets member countries

d.non of the above, there is no economic advantage to the trade bloc

15. in order to obtain an efficient allocation of resources worldwide:

a. each country should produce the good they have a comparative advantage in and then trade

b.countries that have a lot of resources should ship resources to countries that do not have a lot of resources

c.countries that have a lot of resources should not trade since poorer countries cannot comete

d. no trade among countries should occur

16. the exchange rate for a foreign currency that is determined by supply and demand is:

a. a fixed exchange rate

b.a flexible exchange rate

c.a constrained exchange rate

d.a controlled exchange rate

17. today the most common exchange rate arrangement in the world is:

a. the manages floating system

b.the gold stadard

c.the fixed exchnge rate system

d.the freely foating exchange rate system

19.in the balance of payments any transaction that leads to a recipt by a resident of a country is a:

a.debit item

b.surplus item

c.deficit item

d.minus item

20. the effect of a quota is to:

a. reduce quantity supplied and raise price

b.increase demand for the good and increase price

c.increase quantity supplied and lower price

d.increase quantity supplied and increase price

14) a. reduced or eliminated tariffs among member countries

15) each country should produce the good they have a comparative advantage in and then trade

16) b.a flexible exchange rate

17) a. the manages floating system

19) .surplus item

20) reduce quantity supplied and raise price

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