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’1’ “f 12. Suppose that two countries produce the same kinds of goods, but the real wage is much lower in one country
(5/ than the other. Workers from the country with the lower wage must t, p \ '.
A. be less productive¥ "v".- ‘7' i - \ 3 ‘
® be more productive. . I“. v) ,1’ z A“ “N O. 3/
C. have the same productivity} D. have workers who are willmg to take whatever wage they get. é
B. have workers who has no idea about the wage rates in other countries. x 55m Domestic demand
'3- ("1‘ \: ._‘,
3 World price plus Tariﬁ'
$0 I I I I 1E] 30 50 m 90 110
0 uantity of sugar (tons per year) 13. The clear winners from the tariff are the ‘ , and the losers from the tariff are the . A. consumers; producers
B. consumers and government; producers C. producers; consumers and government
D. producers and consumers; government
@producers and government; consumers 14. Ifthe price of a good in a closed economy is greater than the world price, then if the country opens its
65mm to world trade the country will be a of that good. ‘ ‘
A . et importer
B. net exporter
C. importer and exporter Rproducer ~E. price setter 15. The price at which a good or service is traded on international markets is called the price. A. international B. world
C. universal D. market @exchange \\ .
/ ;~\s’ 16. The slope of the line tangent to a point on an economy's PPC equals . @the ratio of the world prices of the goods produced. B. the opportunity cost of producing one more unit of the good measured on the horizontal axis. I :
C. the Opportunity cost of producing one more unit of the good measured on the vertical axis. : i"
’Q. the opportunity cost of producing one more unit of each good shown on the graph. E. the opportunity cost of technological improvements that increase total output. ...
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- Spring '07