Practice_Exam_4 - EconS 102, 4th section, 2010 Fall...

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EconS 102, 4 th section, 2010 Fall Practice Test for Final 1. In autarky, a. each country's consumption possibilities are the same as its production possibilities b. equilibrium is attained with the maximum gains from specialization and trade c. equilibrium is attained with the maximum amount of international trade d. a nation has such a high standard of living that there are technically no poor people e. a nation is governed by an individual with absolute authority 2. The basis of the benefits of specialization is a. comparative advantage b. absolute advantage c. size of country d. identical production costs between two countries e. self-sufficiency 3. Which of the following factors is the most significant in determining the pattern of international trade? a. absolute advantage b. diplomatic expertise c. comparative advantage d. overpowering military strength e. a country's size relative to another country’s 4. The rate at which two countries trade one good for another a. is known as the foreign exchange rate b. is known as the terms of trade c. is known as the export line d. equals the slope of the import line e. equals the common slope of the countries' production possibilities frontiers 5. A nation's consumption possibilities frontier is a. always the same as its production possibilities frontier b. never the same as its production possibilities frontier c. the same as its production possibilities frontier only if there is advantageous trade d. the same as its production possibilities frontier only if there is no international trade e. usually lower than its production possibilities frontier 6. To maximize worldwide gains from trade, the country that should produce a good is the country that a. has the lowest opportunity cost of producing it b. can produce that good using the fewest resources c. will produce that good using the most expensive resources d. has the most desire for that good e. has produced that good in the past
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7. Ad valorem tariffs on imports are based on a percentage of an import's value; specific tariffs are based
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This note was uploaded on 01/10/2012 for the course ECONS 102 taught by Professor Kuzyk during the Fall '08 term at Washington State University .

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Practice_Exam_4 - EconS 102, 4th section, 2010 Fall...

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