Midterm#2

Midterm#2 - #4 Setting a legal limit on the quantity of...

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#4 Setting a legal limit on the quantity of foreign good that may be imported is an example of a quota All else the same, placing a tariff on Japanese cars imported into the U.S. will increase government revenues Dumping refers to selling goods to other countries at a price below the average cost of producing them When a group of countries from a customs union, members will each have the same tariff on imports from countries outside to union NAFTA, the trade agreement among U.S., Canada, and Mexico is an example of free trade area If the exchange rate for the dollar is 100 against the Japanese yes, 1 dollar = 100 yen, 1 cent = 1yen All else the same, an increase in domestic interest rates in the U.S. will tend to increase the dollar exchange rate According to Naked Economics , which of the following policies appear to make the difference between the wealth and poverty of nations? Effective government, property rights, openness to trade, geography, human capital, responsible fiscal and monetary policy Product Upperland Lowerland Radios 10 8 Wheat (bu) 100 40 The opportunity cost of radios in terms of wheat within each country is: 10 bu. In Upperland, .5 bu in Lowerland Upperland relative to Lowerland has a comparative and absolute advantage in wheat production If the output per person per day were to increase in Lowerland to 24 Radios and 120 bu of wheat, Upperland relative to Lowerland would now have a comparative and absolute disadvantage in radio production According to the evidence presented in class (graphs), which of the following is true from 1820 to around 1980 or so for the world as whole? (Chart 2 & 4) Income inequality increase, but extreme poverty decreased According to evidence presented in classes (graphs) , which of the following is true from around 1980 through the recent years as a whole? Income inequality decreased and extreme poverty decreased
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Midterm#2 - #4 Setting a legal limit on the quantity of...

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