5. Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United States often seeks protection from food imports from Canada. From an economywide viewpoint, these efforts are:
a. Political motivations to impose government control over various aspects of the two economies
b. Desirable since they protect the jobs of entertainment workers in Canada and farmers in the U.S.
c. Desirable since without them Canadian cultural identity will be weakened and the U.S will suffer food shortages.
d. Misguided because the enhanced output from specialization based upon comparative advantage is restricted.
8. Germany and China are countries that trade with each other. If Germany has a comparative advantage in cars and China has a comparative advantage in shoes, which of the following is a correct statement about the effects of trade between these nations?
a. Both countries will lose jobs through trade and be worse off
b. There will be a net loss of employment in China
c. Both countries are likely to be better off, and world production will increase
d. Germany will lose jobs in the car industry
10. Money Prices 2003 2004
Hospital Room(1-day) $250 $275
Hotel Suite (1- night) $350 $375
Based on the table above which of the following is true?
a. The money prices of both goods increased, the relative price of hospital rooms increased, and the relative price of hotel suites decreased
b. The money prices of both goods increased the relative price of hospital rooms decreased and the relative price of hotel suites increased.
c. The money prices of both goods increased and the relative prices of both goods increased.
d. The money prices of both goods increased and the relative prices of both goods decreased.
5. Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United States often seeks protection from food imports from Canada. From an economywide viewpoint, these efforts are:
a. Political motivations to impose government control over various aspects of the two economies
b. Desirable since they protect the jobs of entertainment workers in Canada and farmers in the U.S.
c. Desirable since without them Canadian cultural identity will be weakened and the U.S will suffer food shortages.
d. Misguided because the enhanced output from specialization based upon comparative advantage is restricted.
8. Germany and China are countries that trade with each other. If Germany has a comparative advantage in cars and China has a comparative advantage in shoes, which of the following is a correct statement about the effects of trade between these nations?
a. Both countries will lose jobs through trade and be worse off
b. There will be a net loss of employment in China
c. Both countries are likely to be better off, and world production will increase
d. Germany will lose jobs in the car industry
10. Money Prices 2003 2004
Hospital Room(1-day) $250 $275
Hotel Suite (1- night) $350 $375
Based on the table above which of the following is true?
a. The money prices of both goods increased, the relative price of hospital rooms increased, and the relative price of hotel suites decreased
b. The money prices of both goods increased the relative price of hospital rooms decreased and the relative price of hotel suites increased.
c. The money prices of both goods increased and the relative prices of both goods increased.
d. The money prices of both goods increased and the relative prices of both goods decreased.
