Chap 20-21 Quiz

If the exchange rate between the US dollar and the Japanese yen is $1 = 200 yen, then the dollar price of yen is

$0.005.

If a U.S. importer can purchase 10,000 British pounds for $20,000, the rate of exchange is:

$2 = 1 British pound in the United States

U.S. exports of goods and services (on a national income account basis) are about:

13 percent of U.S. GDP

The fact that the international specialization and trade based on comparative advantage can increase world output is demonstrated by

A nation's trading possibilities line lies to the right of its production possibilities line

Differences in production efficiencies among nations in producing a particular good result from

All of these ( different amount of skilled labor, different endowments of fertile soil, different levels of technological knowledge)

The given data shows that

Beta is more efficient than Alpha both in catching fish and in producing chips

The United States' most important trading partner quantitatively is

Canada

With which of the following countries does the United States have its largest goods and services deficit?

China

In terms of absolute dollar volume, the top 3 leaders in the world exports are

China, the United States, and Germany

Countries engaged in international trade specialize in production based on:

Comparative advantage

Which of the following is an example of a labor- intensive commodity?

Digital cameras

In order for mutually beneficial trade to occur between two otherwise isolated nations,

Each nation must be able to produce at least one good relatively cheaper than the other.

Suppose the domestic price (no-international-trade price) of wheat is $3.50 a bushel in the United States while the world price is $4.00 a bushel. Assuming no transportation costs, the United States will:

Export wheat

A market in which the money of one nation is exchanged for the money of another nation is a:

Foreign exchange market

Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n):

Import qouta

In Latalia the domestic real cost of 1 ton of pork (graph)

Is 5 tons of beans

Tariffs

May be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition ( protective tariffs).

If country A can produce both X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B,

Mutually advantageous specialization and trade between A and B may still be possible.

In a two nation model, the equilibrium world price will occur where

One nation's export supply curve intersects the other nation's import demand curve

The domestic opputunity cost of (graph)

Producing a ton of chips in Beta is 6 tons of fish

Refer to the diagram, which shows the domestic demand and supply curves for a specific standerized product in a particular nation. If the world price for this product is $ 0.50, this nation will experience a domestic

Shortage of 160 units, which it will meet with 160 units of imports

Which of the following is an example of a land intensive commodity?

Wool

Studies show that

costs of trade barriers exceed their benefits, creating an efficiency loss for society

The primary gain from international trade is

more goods than would be attainable through domestic production alone.

Export supply curves are________; import demand curves are_________

upslopping; downslopping