Practice_test_Chapter_9

Practice_test_Chapter_9 - Name: _ Class: _ Date: _ ID: A...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Chapter 9 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. What is the fundamental basis for trade among nations? a. shortages or surpluses in nations that do not trade b. misguided economic policies c. absolute advantage d. comparative advantage ____ 2. Suppose Puerto Rico has a comparative advantage over other countries in producing sugar, but other countries have an absolute advantage over Puerto Rico in producing sugar. If trade in sugar is allowed, Puerto Rico a. will import sugar. b. will export sugar. c. will either export sugar or export sugar, but it is not clear from the given information. d. would have nothing to gain either from exporting or importing sugar. ____ 3. When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans, a. this is an indication that the world price of soybeans exceeds the nation’s domestic price of soybeans in the absence of trade. b. this is an indication that the nation has a comparative advantage in producing soybeans. c. the nation’s consumers of soybeans become worse off and the nation’s producers of soybeans become better off. d.
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Practice_test_Chapter_9 - Name: _ Class: _ Date: _ ID: A...

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