Chapter 17-18 Quiz

Chapter 17-18 Quiz - 1 Withfieetradefihiscmmtfscifi...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. WithfieetradefihiscmmtfscifizenscanconsmnethegreatestamomtofbothgoodA andgoodBiffinecomItr-yprodncesatpoint A) F B) G C) H D) P B) Q . 2. chiscounhyispmdncingbetweenpointGmintwillgainby its production of goodAand importing more . A) increasing-,goodB B) inmeesingggoodA C) decreasinggoodB D) decreasinggoodA E) mtchmginggoodB Suppose that Canada, an indusu'ialized nation, and Mexico a developing nation, bofl1 produce cheese and cars. The real wage in Mexico is lower than in Canada. The countries have a free trade agreement. Page 1 3. Which country benefiis the most from the free trade agreement? A) Canada | B) Mexico C) None of them D) Both of them 3) Not enough information to determine. 4. SuppoaeMexicohas a comparative advantage inproducing cheese and Canadahas a comparative advantage in producing cars. Open trade will but A) Canadian auto workers B) Canadian car producers C) Mexican cheese producers D) Mexican car producers E) none of the above 1020 30405060708090.100v Guenfltyofcarsuhousands) 5. Whatistheprice ofcans inaclosedeconomy? A.) $6,000/ca1' B) $8,000/car C) $10,000/car D) $14,000/car E) $24,000/car 6. Ifflu's-is an open economy, theprice ofa car will be A) $6,000/car B) $8,000/car C) $10,000/ca: D) $14,000/car E) $24,000/ca1' 7. How many cars (in thousands) will this country import in an open economy situation A) 20 B) 40 C) 60 . D) 80 E) 100 55m domestic demand Domestic 4500 “PW ’E S 3500 a O —————————— 3 D *5 2500 g Wodd price plus, {ran-Hf ‘3‘ 10 30 50 70 90 110 Quantity of sugar (bans per year) 8. What is the world price of sugar wiflmut the tariff? A) 8500/ ton B) $1000/ton C) $1500/ton D) $2000/ton E) $3000/ton 9. The. inmasuin the price :3me crusted bythe tarifiwill increasedomesfic’ promotion by-Hmns per year, comparedto the production of an open economy witth the tfln'fl: A) 10 B) 20 C) 30 D) 40 B) so 10. Comparedtothedomesticproducfionofmopeneconomywithoutstatifi;thgsmount ofimportedsugarwifldropfi'om tonsto . tonsafietflaetatifi'ishnposed. A) 20; 10 _ B) 40; 20 C) 60; 30 D) 80;40 E) 100; 50 ll. Whenflienominal exchange increases frum4 fi'ancsperdoflartoé francsper dollar,the dollar has: A) appreciated B) depreciated C) become overvalued D) become undervalued E) been devalued 12 Anincreaseintherealexchangerate‘wflltendto _____exportsa.ndto imports. A) inmase;decrease ‘ B) increasegincresse C) notehangemotchange D) deureasefincresse E) decrease;duuresse 13.1fauertain muomotivepaztcanbepmhasedinMexico for 32pesos orintheUnited States for $5.25 and ifthenominal exchangerate is 8 pesos perU.S. dollar, then the automotive part: A) is more expmsive in Mexico. B) is more expensive in the United States. C) is less expensive in the United States. D) costs more in Mexico. E) uoststhesameinMexicoandtheUnitedStates. Page 4 14. The price ("ifgb'ld is $300 per“ mince in New York” aiad $435 Cahadian dollarsfier- ohnce ‘ in Teronto, Canada. Ifthe law of ohe price holds for geld, the nominal exchange rate is Canadian dollars per U. S dollar”. A) .333 B) .690 C) 1 D) 1.45 E) 3.33 15. fielding all else constant, anincfe’as'einU.S.real GDPWill__thesup'ply e‘fdoll‘ars in the foreign exchahge market and __ the equilibrium MexieahpesofUS. dollar exchange rate. A) increase; increase B) increase; decrease C) not change; not change D) decrease; increase E) decrease; decrease 16. The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as ' Japanese yen per US. dollar, will appreciate when: A) real GDP in the U. S. increases. B) real GDP in Japan' increases. C) the U. S Federal Reserve eases monetary policy. D) U. S. consumers increase flieir preferenee for Japanese cars. E) the Bank of Japan tightens monetary policy. 17. When the Fed eases U.S. monetary policy, domestic interest rates making US. assets relatively less attractive to foreign investors and the equilibrihm exchange rate. ' A) rise; increasing B) fall; increasing C) do net change; increasing D) rise; decreasing B) fall; decreasing Page 5 Supply of Krone- 2 ; Demand for at Krone 2,000 4,000 7,500 Quantity of Krone Traded 18. Based on the figure, if the krone exchange rate is fixed at $015 dollars per krone, the krone is A) devalued B) revalued C) overvalued D) undervalued E) valued at par 19. Based on the figure, in orderto maintain an. exchange rate of $0.15 dollars per Norwegian krone, the Norwegian government will have to spend dollars worth of international reserves per period. ' '. A) 300 I B) 605 C) 325 D) 2.000 E) 5,500 20. A speculative attack on an overvalued currency leads to a(n) . in international reserves and a(n) in the fundamental value of the exchange rate. A) increase; increase B) increase; decrease C) increase; no change D) decrease; decrease E) decrease; increase Page 6 L 33“ MQQQQUmme<QQOmmUDQ Acidévixdh‘odcfio' u—Iu—nu—du—iv—du—dv—cr—tu-tm Adv-311661406049; f E ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern