17 - U.S. exports: ( )A)have tended to increase over time...

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U.S. exports: ( ) A) have tended to increase over time as a percentage of GDP. ( ) B) constitute a relatively low ratio to GDP compared to most other nations. (X) C ) Both (a) and (b) are true. ( ) D) None of the above is true. Feedback: U.S. exports have increased as a percentage of GDP and represent a low ratio to GDP compared to other countries. It increases the total U.S. consumption possibilities if the United States: ( ) A) imports a product for which the exporting country has the comparative advantage. ( ) B) never imports a product that can be produced by American workers. (X) C ) has consumers who join together and adopt a "Buy American" policy. ( ) D) agrees (as a type of foreign aid) to subsidize imports of products such as computers that represent the comparative advantage of domestic U.S. manufacturing firms. Feedback: U.S. consumption possibilities will increase if the U.S, imports a product where the exporting country has a comparative advantage. When a nation engages in trade: ( ) A) its consumption possibilities are less than its production possibilities because imports act to "send jobs abroad." ( ) B) consumption possibilities are equal to production possibilities. (X) C ) consumption possibilities exceed production possibilities. ( ) D) high wage nations always run trade deficits with low wage nations. Feedback: Consumption possibilities are greater than production possibilities when countries trade. Increased U.S. trade: ( ) A) tends to increase sales in all U.S. industries. ( ) B) acts to strengthen home industries having a comparative advantage but hurts home industries having a comparative disadvantage. (X) C ) always hurts the poorer countries of the world. ( ) D) always hurts workers in the United States.
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Feedback: More U.S. trade will help industries with a comparative advantage. If free markets are allowed to operate: ( ) A) profit-seeking businessmen will create a tendency for each country to specialize in the production of those products for which they have a comparative advantage. ( ) B)
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17 - U.S. exports: ( )A)have tended to increase over time...

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