MICRO PRACTICE QUESTION SET #4
WITH VERIFIED ANSWERS
As ra rwhole rnations rare rbetter roff rafter rtrade rand rspecialization rbecause
A. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve, rwhich ris routside
rof rtheir rproduction rpossibilities rcurve. r
B. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve, rwhich ris rinside
rof rtheir rproduction rpossibilities rcurve. r
C. rNations rcan rconsume ralong rtheir rproduction rpossibilities rcurve, rwhich ris routside
rof rtheir rconsumption rpossibilities rcurve.
D. rNations rexperience ran rinward rshift rof rtheir rproduction rpossibilities rcurve. r-
rCORRECT✅✅A. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve,
rwhich ris routside rof rtheir rproduction rpossibilities rcurve.
If ra rnation rexports ra rgood rwhen rthe reconomy ris ropened rto rtrade, rthe rdomestic rprice
rof rthe rgood rwill______ rand rdomestic rconsumption rwill r________
A rRise;Rise
B. rFall;Rise
C. rRise:Fall
D. rFall;Fall r- rCORRECT✅✅C. rRise:Fall
Terms rof rtrade ris rthe:
A. rQuantity rof rimported rgoods ra rcountry rcan robtain rin rexchange rfor ra runit rof
rdomestic rgoods rexported. r
B. rRatio rof rnet rexports rto rGDP.
C. rAmount rof rgoods ra rcountry rcan rconsume rwithout rreducing rits rsupply rof rgold.
D. rThe rchange rin rthe rrate rof runemployment rfor revery rone rprecent rincrease rin
rimports. r- rCORRECT✅✅A. rQuantity rof rimported rgoods ra rcountry rcan robtain rin
rexchange rfor ra runit rof rdomestic rgoods rexported.
The rargument rthat rcalls rfor rthe rtrade rprotection rof ronly rnewly rdeveloping rindustries
ris rknown ras rthe_____argument
A. rLearning rby rdoing
B. rPredatory rDumping
C. rInfant rIndustry r
D. rDeveloping rNation r- rCORRECT✅✅C. rInfant rIndustry
A rpossible rreason rto rimpose ra rprotectionist rpolicy rsuch ras ra rtariff ris rto
A. rIncrease rthe rwelfare rof rdomestic rconsumers.
B. rSlow rdomestic rproduction.
C. rAid rother rnations rin rdeveloping rtheir rown rindustries.
WITH VERIFIED ANSWERS
As ra rwhole rnations rare rbetter roff rafter rtrade rand rspecialization rbecause
A. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve, rwhich ris routside
rof rtheir rproduction rpossibilities rcurve. r
B. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve, rwhich ris rinside
rof rtheir rproduction rpossibilities rcurve. r
C. rNations rcan rconsume ralong rtheir rproduction rpossibilities rcurve, rwhich ris routside
rof rtheir rconsumption rpossibilities rcurve.
D. rNations rexperience ran rinward rshift rof rtheir rproduction rpossibilities rcurve. r-
rCORRECT✅✅A. rNations rcan rconsume ralong rtheir rconsumption rpossibilities rcurve,
rwhich ris routside rof rtheir rproduction rpossibilities rcurve.
If ra rnation rexports ra rgood rwhen rthe reconomy ris ropened rto rtrade, rthe rdomestic rprice
rof rthe rgood rwill______ rand rdomestic rconsumption rwill r________
A rRise;Rise
B. rFall;Rise
C. rRise:Fall
D. rFall;Fall r- rCORRECT✅✅C. rRise:Fall
Terms rof rtrade ris rthe:
A. rQuantity rof rimported rgoods ra rcountry rcan robtain rin rexchange rfor ra runit rof
rdomestic rgoods rexported. r
B. rRatio rof rnet rexports rto rGDP.
C. rAmount rof rgoods ra rcountry rcan rconsume rwithout rreducing rits rsupply rof rgold.
D. rThe rchange rin rthe rrate rof runemployment rfor revery rone rprecent rincrease rin
rimports. r- rCORRECT✅✅A. rQuantity rof rimported rgoods ra rcountry rcan robtain rin
rexchange rfor ra runit rof rdomestic rgoods rexported.
The rargument rthat rcalls rfor rthe rtrade rprotection rof ronly rnewly rdeveloping rindustries
ris rknown ras rthe_____argument
A. rLearning rby rdoing
B. rPredatory rDumping
C. rInfant rIndustry r
D. rDeveloping rNation r- rCORRECT✅✅C. rInfant rIndustry
A rpossible rreason rto rimpose ra rprotectionist rpolicy rsuch ras ra rtariff ris rto
A. rIncrease rthe rwelfare rof rdomestic rconsumers.
B. rSlow rdomestic rproduction.
C. rAid rother rnations rin rdeveloping rtheir rown rindustries.
