quiz 4

quiz 4 - World output of goods and services can be...

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World output of goods and services can be maximized: Possible Answers A. by having every country produce some of every good. B. by having every nation produce the good it has a comparative advantage in producing. C. by having every nation produce the good it has an absolute advantage in producing. D. by letting the United Nations decide who produces what. 2. If a nation has an absolute advantage in producing a good or service, this means that: Possible Answers A. using the same amount of resources, the nation can produce more of that good than any other nation. B. no other nation can produce the good. C. the nation has the lowest opportunity cost to produce that good. D. all of the above. 3. What must balance on a balance sheet? Possible Answers A. Total assets must equal total liabilities plus equity. B. Retained earnings plus dividends paid must equal earnings per share. C. Revenues must equal costs. D. All of these must balance. 4. Who owns a corporation? Possible Answers A. The board of directors B. The CEO C. The stockholders D. The employees
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5. An import quota: Possible Answers A. reduces the quantity of the product imported. B. increased domestic production of the product. C. raises domestic price for the product. D. all of the above. 6. A sole proprietorship is controlled by its: Possible Answers A. employees. B. stockholders. C. owner. D. bondholders. 7. A nation that does not trade with other nations: Possible Answers A. maximizes the number of jobs in its economy. B. will have lower prices than other countries. C. will have as large a Gross Domestic Product as is possible. D. will have its citizens consuming at a lower standard of living than if it traded. 8. The type of business that is the most difficult to set up is: Possible Answers A. all types of businesses are equally difficult to set up. B. a sole proprietorship. C. a partnership. D. a corporation.
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Protection: Possible Answers A. eliminates the gains from trade. B. reduces the gains from trade. C. reduces government interference in the market. D. reduces domestic production of the protected good. 10. What are the terms of trade? Possible Answers A. Ratio at which a country can trade its exports for imports from other countries B. Ratio at which the domestic currency trades for a foreign currency C. Price of imports in terms of the domestic currency D. Price of imports in terms of the foreign currency 11. A secondary market is: Possible Answers A. where secondary inputs like electricity are sold. B. where a corporate financial manager will raise funds for expansion of the firm. C. where already issued claims are sold. D. where newly issued claims are sold by the borrowing firm to the initial buyer. 12.
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quiz 4 - World output of goods and services can be...

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