FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

When a domestic country exports goods to and imports goods from a foreign country, in the short run domestic:

A) producers in the exporting industry may be worse off.
B) consumers of the imported good may be worse off.
C) consumers of the exported good may be better off.
D) producers in the importing industry may be worse off.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Protectionist policies:

A) restrict the importation of foreign goods and services.
B) shift the supply curves for the protected goods and services to the right in the country imposing the restriction.
C) generally result in increased benefits in the long run in all countries.
D) are no longer advocated by powerful interests.

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

The slope of the production possibilities curve is positive if there is free trade.

-(Exhibit: Production Possibilities for Machinery and Petroleum.) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of machinery each country would have to forgo in order to produce the additional petroleum indicated. The opportunity cost in Mexico of producing 210 units of petroleum is _______ units of machinery.

If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that foreign producers are selling silicon chips in the United States below production costs, they are using the:

Dumping is selling in a foreign market at a price in excess of the importing country's domestic average total cost of production.

-(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated. Further assume that the only input is labor and that it remains fully employed. Assume that there is unrestricted trade and complete specialization. According to comparative advantage, country:

If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that several thousand workers would lose their jobs if there were a reduction in domestic silicon-chip production, they are using the:

Free trade is beneficial because it:

Quotas imposed on U.S. imports into Japan tend to:

If the opportunity cost is 2X = 1Y for country A and 1/3X = 1Y for country B, then a possible terms of trade is:

A new domestic industry with potential economies of scale is called a(n) :

A policy in which a country restricts the importation of goods and services produced in foreign countries is described by economists as:

A policy aimed at promoting the development of specific industries within a country that may increase domestic welfare through trade with the rest of the world is known as a(n) :

Which of the following statements is true?

-(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated. Further assume that the only input is labor and that it remains fully employed. The cost to Canada of producing an additional unit of Y is _______ unit(s) of X.

-(Exhibit: Production Possibilities in Alphaland and Omegaland) The slopes of the production possibilities curves (PPCs) in the two countries are:

-(Exhibit: Production Possibilities in Alphaland and Omegaland) At point A in Alphaland, ________ additional computer(s) cost(s) _______ additional car(s) and at point A? in Omegaland, _______ additional computer(s) cost(s) _______ car(s) .

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

-(Exhibit: Production Possibilities in Alphaland and Omegaland) If the final terms of trade are 1 computer = 1 car, then: