Micro Test 2

Tariff

A tax on imported goods

True

China is accused of "currency manipulation" by maintaining the value of Chinese Yuan artificially low to benefit Chinese exporters.

export computers, since that country has a comparative advantage in computers

For any country, if the world price of computers is higher than the domestic price of computers without trade, that country should

True

If U.S. dollar depreciates it benefits U.S. exporters

the United States has a comparative advantage relative to France in producing cars, and Switzerland has a comparative advantage relative to the United States in producing cheese.

Suppose the United States exports cars to France and imports cheese from Switzerland. This situation suggests that

True

True or False: Doha Round has collapsed primarily due to the disagreement among developed and developing countries on subsidies and high tariffs for agriculture.

True

True or False:Exchange rate between Japanese Yen and U.S. Dollar has a strong impact on trade flows between two countries.

the gains of the winners exceed the losses of the losers.

When a country allows international trade and becomes an importer of a good,

domestic producers become worse off, and domestic consumers become better off.

When a country allows trade and becomes an importer of a good,

the gains of the winners exceed the losses of the losers.

When a country allows trade and becomes an importer of a good,

the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel.

When a country allows trade and becomes an importer of steel,

residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises.

When the nation of Duxembourg allows trade and becomes an importer of software,

residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become worse off; and the economic well-being of Econoland rises.

When the nation of Econoland allows trade and becomes an exporter of televisions,