ECON TEST 4 EXAM WITH ACTUAL CORRECT QUESTIONS WITH 100% PASS

ECON TEST 4 EXAM WITH ACTUAL CORRECT QUESTIONS WITH 100% PASS Which of the following contributes to higher labor productivity? a. training. b. modern capital. c. modern technology. d. all of the above. all of the above A situation whereby one country can produce a good wit h lower opportunity cost than another country defines: a. comparative advantage. b. absolute advantage. c. situational advantage. d. advantage by proxy. comparative advantage One benefit of trade is the improved ______ achieved by specialization according to comparative advantage. a. equity. b. efficiency. c. political stability. d. government borrowing. efficiency Which of the following does not gain from free trade in imports of handbags? a. the country as a whole. b. handbag consumers in the country. c. handbag producers in the country. d. export producers in the country. handbag producers in the country Producers of U.S. exported products may suffer when the United States imposes trade restrictions on imports because: a. other countries may retaliate with their own trade restrictions. b. other countries may purchase fewer U.S. products because their incom es may fall. c. exchange rate changes may result in foreigners purchasing fewer U.S. exports. d. all of the above. all of the above A tariff is: a. a tax on an imported good. b. a restriction on the quantity of an imported good. c. a requirement for qualit y of imported goods. d. all of the above. a tax on an imported good U.S. trade restrictions on imports result in: a. a loss of gains from specialization for the United States as a whole. b. a greater opportunity for market power in the United States. c. losses to U.S. exporters. d. all of the above. all of the above Primary commodities generally have: a. inelastic demand. b. stable prices. c. supply that does not fluctuate. d. all of the above. inelastic demand "A situation where the prices of a country's e xports decline relative to the prices of its imports" is the definition for: a. comparative advantage. b. voluntary export restraint. c. declining terms of trade. d. retaliation. declining terms of trade Which of the following is not true? Demand for devel oping country exports has declined: a. due to the development of synthetics. b. due to developed country trade restrictions. c. and contributed to declining terms of trade. d. and contributed to rising prices of exports of developing countries. and contrib uted to rising prices of exports of developing countries Which of the following is not a member of the North American Free Trade Agreement? a. Russia. b. Canada. c. United States. d. Mexico. Russia Which of the following is an international trade problem f or a developing country? a. lack of diversity in exports. b. reliance on exporting primary commodities. c. price instability. d. all of the above. all of the above Which is not a result of the current U.S. economic crisis? a. foreign companies hire more workers. b. a decline in world trade. c. Americans lose jobs. d. foreign companies cut production. foreign companies hire more workers Absolute advantage is defined as a situation whereby a country can produce a good with low er opportunity cost than another country. False Assuming two countries and two goods, a country that has an absolute advantage in production of both goods cannot possibly benefit from trade. False When considering labor costs to a firm, both wages and labo r productivity must be considered. True The benefits of trade to a country include increased market power. False U.S. trade restrictions on imports may result in retaliation by other countries. True If our exports are greater than our imports, we have a trade deficit. False With trade, a country may achieve a consumption possibilities curve that is superior to its production possibilities curve. True A quota is a restriction on the quantity of an impo rted good.