MGEA02H3 Lecture Notes - Lecture 22: Comparative Advantage, Negative Number, Real Gross Domestic Product
MGEA02H3 Full Course Notes
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Today, in the Unitedâ States, exports are about
A.
28 percent of GDP.
B.
90 percent of GDP.
C.
14 percent of GDP.
D.
4 percent of GDP.
Which of the following statements isâ FALSE?
A.
Sophisticated financial systems have given U.S. productive efficiency a boost.
B.
When it comes to overall productiveâ efficiency, compared toâ Japan, Germany and the rest of the Europeanâ Union, the United States lags far behind.
C.
Economic restructuring and investments in information technology have added to productive efficiency in the United States.
D.
The Unitedâ States' international competitive position has been helped by its long history of widespread entrepreneurship.
One problem with the infant industry argument is that
A.
it fails to protect domestic industries from foreign competition.
B.
it must be approved by the Federal Reserve Board.
C.
it must be approved by the IMF and the World Bank.
D.
the protection is typically neverâ removed, creating a domestic monopoly.
When a tariff isâ imposed, the supply curve for the imported good
A.
shifts upward and to the left.
B.
shifts downward and to the right.
C.
becomes perfectly inelastic.
D.
does not change.
The WTO replaced the GATT in
A.
1900.
B.
1995.
C.
1960.
D.
1945.
The World Trade Organization
A.
increases world trade by providing interest rate subsidies to foreign borrowers who buy U.S. exports on credit.
B.
was established to settle trade disputes within the European Union.
C.
was established to resolve disputes arising under world trade rules.
D.
is another name for the IMF.
Trade deflection is an act that
A.
has no impact on the amount of international trade in the world.
B.
is illegal among all countries in the world.
C.
decreases the amount of international trade in the world.
D.
increases the amount of international trade in the world.
| The Number of Worker Days to Produce One Cuckoo Clock or Movie Using All Available Resources | ||
| Product | United States â (WorkerminusââDays) | Switzerland â (WorkerminusââDays) |
| Cuckoo Clocks | 8 | 6 |
| Movies | 12 | 4 |
Refer to the above table. Assuming constant opportunityâ costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock.
A.
U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange.
B.
U.S. residents would be willing to export cuckooâ clocks, but Swiss residents would not gain from exporting movies at this rate of exchange.
C.
Swiss residents would be willing to exportâ movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange.
D.
U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
The balance of payments is
A.
a summary record of aâ country's purchases and sales of goods and services in the world market.
B.
a summary record of aâ country's economic transactions with foreign residents and governments.
C.
the value of goods and services bought and sold in the world market.
D.
the value of merchandise goods bought and sold in the world market.
|
Q1. Import quotas are a. methods for reducing imports by limiting the quantity of goods that can enter the country each year b. voluntary agreements by exporting countries to limit sales in a foreign country c. subsidies to foreign producers to encourage them to trade d. none of these Q2. Devices that set up multiple exchange rates between the currencies of two nations are known as a. tariff quotas b. export subsidies c. exchange controls d. variable currencies Q3. The international organization that replaced the General Agreement on Tariffs and Trade (GATT) is the a. World Bank b. Export-Import Bank c. World Trade Organization d. International Monetary Fund Q4. Dumping refers to the practice of a. flooding a foreign market with large quantities of a good b. selling a product abroad at a price below cost or below the domestic price c. exporting inexpensive products to foreign countries d. selling surplus goods abroad with counterfeit brand names Q5. Countries engage in trade because a. the exchange is mutually beneficial b. governments force industries to exchange c. international law dictates that exchange must take place d. all of these Q6. According to the U. S. Department of Commerce, all persons, unrelated or related, who occupy a housing unit comprise a. a family unit b. a household c. an extended family unit d. group living Q7. A country with an equal distribution of income will have a higher standard of living than a country with a more unequal distribution of income. a. true b. false Q8. Welfare caseloads tend to fluctuate with a. business cycles b. weather c. stock markets d. minimum wage rates Q9. The official poverty threshold line is adjusted annually for a. income taxes b. inflation c. average household size d. average family size Q10. For many welfare recipients, taking a job reduces income. a. true b. false Q11. It is true that a stable economy occurs when a. total injections into the circular flow are large enough to make up for government tax leakages b. total leakages from the circular flow are great enough to offset the effects of government spending c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow d. actual saving is equal to planned investment Q12. The measure of income received by persons from all sources is known as a. personal income b. national income c. gross domestic product d. net national product Q13. Discharges of chemicals from a paper plant that pollute a nearby river represent an example of a. internal costs b. the underground economy c. social costs d. transfer costs |
