Protectionist measures are enacted because they:
A. allow countries to preserve culturally important ways of life at very low cost.
B. typically benefit a large number of people at a cost to only a very small number.
C. typically benefit a small number of people greatly and impose small costs on a large number of people.
D. make everyone in an economy better off.
E. preserve a nationâs critical natural resources.
Restrictions on imports of foreign steel into the U.S. will:
A. help both U.S. steel producers and U.S. automobile producers.
B. help U.S. steel producers and hurt U.S. automobile producers.
C. hurt U.S. automobile producers, but help U.S. automobile consumers.
D. hurt foreign steel producers and help U.S. steel consumers.
E. help both U.S. steel producers and foreign steel producers.
Say that the exchange rate between the U.S. dollar and the Melnik bop is expressed in terms of bops per dollar. All of the following will cause this exchange rate to rise, ceteris paribus, except for:
A. an increase in Melnik residentsâ demand for U.S.-made cigarettes.
B. a big increase in the number of American tourists visiting the beautiful archeological sites of Melnik.
C. a decrease in interest rates in the U.S.
D. an increase in U.S. demand for intricate carvings made exclusively by artists in Melnik.
E. an increase in interest rates in Melnik.
Which of the following transactions would be recorded as a credit in the U.S. current account?
A. A Mexican bankâs purchase of Microsoft stock (Microsoft is an American-owned firm)
B. An American touristâs payment to a Mexican hotel
C. A Mexican consumerâs purchase of a computer produced in the U.S. by a U.S. firm
D. An American consumerâs purchase of a Mexican-made VCR
E. A German citizenâs receipt of a $50 dividend check on shares of stock she owns in a U.S. corporation
Protectionist measures are enacted because they:
A. allow countries to preserve culturally important ways of life at very low cost.
B. typically benefit a large number of people at a cost to only a very small number.
C. typically benefit a small number of people greatly and impose small costs on a large number of people.
D. make everyone in an economy better off.
E. preserve a nationâs critical natural resources.
Restrictions on imports of foreign steel into the U.S. will:
A. help both U.S. steel producers and U.S. automobile producers.
B. help U.S. steel producers and hurt U.S. automobile producers.
C. hurt U.S. automobile producers, but help U.S. automobile consumers.
D. hurt foreign steel producers and help U.S. steel consumers.
E. help both U.S. steel producers and foreign steel producers.
Say that the exchange rate between the U.S. dollar and the Melnik bop is expressed in terms of bops per dollar. All of the following will cause this exchange rate to rise, ceteris paribus, except for:
A. an increase in Melnik residentsâ demand for U.S.-made cigarettes.
B. a big increase in the number of American tourists visiting the beautiful archeological sites of Melnik.
C. a decrease in interest rates in the U.S.
D. an increase in U.S. demand for intricate carvings made exclusively by artists in Melnik.
E. an increase in interest rates in Melnik.
Which of the following transactions would be recorded as a credit in the U.S. current account?
A. A Mexican bankâs purchase of Microsoft stock (Microsoft is an American-owned firm)
B. An American touristâs payment to a Mexican hotel
C. A Mexican consumerâs purchase of a computer produced in the U.S. by a U.S. firm
D. An American consumerâs purchase of a Mexican-made VCR
E. A German citizenâs receipt of a $50 dividend check on shares of stock she owns in a U.S. corporation
