Week 1 Quiz - Grade Details1.Question: In the...

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Grade Details 1. Question: In the price-specie-flow doctrine, a deficit country will _____ gold, and this gold flow will ultimately lead to _____ in the deficit country's exports. Your Answer: lose; a decrease lose; an increase ( Chapter 2, pg 22 ) CORRECT gain; a decrease gain; an increase Points Received: 1 of 1 Comments: 2. Question:In the Mercantilist view of international trade (in a two-country world), Your Answer: both countries could gain from trade at the same time, but the distribution of the gains would depend on the terms of trade. both countries could gain from trade at the same time, and the terms of trade would be of no consequence for the distribution of the gains. neither country could ever gain from trade. one country's gain from trade would be associated with a loss for the other country. ( Chapter 2, pg 18 ) CORRECT Points Received: 1 of 1 Comments: 3. Question:If the demand for traded goods is price-inelastic, the price-specie-flow mechanism will result in Your Answer: gold movements between countries that remove trade deficits and surpluses. gold movements between countries that worsen trade deficits and surpluses. ( Chapter 2, pg 23 ) CORRECT negligible movements of gold between countries and, as a result, little or no adjustment of trade deficits and surpluses. a removal of the basis for trade between countries. Points Received: 1 of 1 Comments: 4. Question:According to the labor theory of value, Your Answer: the value of labor is determined by its value in production. the value of a good is determined by the amount of labor with which each unit of capital in an industry works. the price of good A compared to the price of good B bears the same relationship as the relative amounts of labor used in producing each good. CORRECT the values of two minerals such as coal and gold with similar production costs may be very different. Points Received: 1 of 1 Comments: 5. Question: Which of the following policies would NOT be consistent with the Mercantilist balance-of-trade doctrine? Your Answer: payment of high wages to labor CORRECT import duties on final products export subsidies prohibition of imports of manufactured goods Points Received: 1 of 1 Comments: 6. Question: In Adam Smith's view, international trade Your Answer: benefited both trading countries. was based on absolute cost differences. reflected the resource base of the countries in question. all of the above CORRECT Points Received: 1 of 1 Comments:
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7. Question: The policy of minimum government interference in or regulation of economic activity, advocated by Adam Smith and the Classical economists, was known as Your Answer: the law of comparative advantage. laissez-faire.
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Week 1 Quiz - Grade Details1.Question: In the...

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