macro sheflin hwk 14

macro sheflin hwk 14 - hw14 Multiple Choice Identify the...

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hw14 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which is the most accurate statement about trade? a. Trade can make every nation better off. b. Trade makes some nations better off and others worse off. c. Trading for a good can make a nation better off only if the nation cannot produce that good itself. d. Trade helps rich nations and hurts poor nations. 2. Benefits from trade would NOT include a. the ability to specialize. b. a greater variety of goods and services becoming available. c. less competition. d. lower prices. 3. If France is better than Belarus at producing wine, but Belarus is better than France at producing crystal, a. Belarus should sell crystal to France, and should buy French wine. b. Belarus should impose a tariff on French wine in order to protect jobs in the Belarusian crystal industry. c. Belarus should subsidize its wine industry so that it can compete with French wine. d. Belarus should put a quota on the amount of French wine imported. 4. Which of the following is NOT correct? a. Trade allows for specialization. b. Trade is good for nations. c. Trade is based on absolute advantage. d. Trade allows individuals to consume outside of their individual production possibilities curve. 5. Comparative advantage is based on a. capital costs. b. labor costs. c. dollar price. d. opportunity costs. 6. When countries specialize according to their comparative advantage, a. it is possible to increase world output of all goods. b. it is possible to increase world output of some goods only by reducing the output of others. c. one country is likely to gain from trade while others lose. d. all countries will lose from trade. 7. Imports are a. people who work in foreign countries. b. an example of an economic model. c. whatever is given up to obtain some item. d. goods produced abroad and sold domestically. 8. A tax placed on imported goods is called a. a quota. b. a tariff. c. an import. d. an export.
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9. Adam Smith a. wrote An Inquiry into the Nature and Causes of the Wealth of Nations . b. opposed free trade. c. wrote the General Theory of Economics. d. All of the above are correct. 10. According to Adam Smith, a person should never attempt to make at home a. what it will cost him more to make than to buy. b. everything one person needs to live. c. what one doesn't know how to make. d. any necessity of life. 11. Economists generally support a. trade restrictions. b. government management of trade. c. export subsidies. d. free international trade. 12. Net exports of a country are the value of a. goods and services imported minus the value of goods and services exported. b. goods and services exported minus the value of goods and services imported. c.
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This note was uploaded on 09/26/2008 for the course ECONOMICS 103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

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macro sheflin hwk 14 - hw14 Multiple Choice Identify the...

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