Chapter31 Flashcards
The reason U.S. workers were better paid than foreign workers during the 1950’s and 1960s is
C. we had more capital(plants and equipment) per worker
Which statement is false?
A. Compared to 30 years ago, there is more sentiment in the US for protection against the import of foreign goods.
B. The basis for international trade is specialization.
C. Our balance of trade has been negative since the early 1900’s.
D. None of the statement is true.
C. Our balance of trade has been negative since the early 1900’s.
If Germany can make compact cars more efficiently than Russia, it enjoys
B. an absolute advantage
Most economists
B. Consider tariffs less of an evil than quotas
We have run merchandise trade deficits of over $70 Billion since
E. 1983
One thing we can do to reduce trade imbalance in the United Ststes would be to
A. push down the value of the dollar relative to other currencies
One way of reducing our trade deficit would be to get Americans to
B. save more and consume less
High protective tariffs
B. will become more likely if we do not reduce our trade deficit
A hollow corporations
C. imports foreign goods and puts its own name on them
Which makes the most sense economically?
C. National specialization
Which statement is the most accurate about trade deficit?
A. there are several problems causing our huge trade deficit; there are no easy solutions to these problems.
The Chinese economic expansion since the early 1980’s and the Japanese economic expansion for the late 1940’s through the 1980’s were
B. both dependent on the American market
Imports would be lowered by
C. both tariffs and imports quotas
Which of the following would NOT be an impact of tariffs imposed on foreign cars?
E. Domestic car prices decline
A balance-of-trade surplus exists
A. if the dollar value of exports exceeds the dollar value of imports
A tariff can best be described as
E. a limit on the quantity of foreign goods that can be sold in a nation’s domestic market.
Which one of the following statements about tariffs and quotas is correct?
A. Only the tariff produces revenues for the government
During the years 1970-1986, the merchandise balance of trade in the US shifted from a
C. trade surplus to a large trade deficit
Suppose that labor is the only productive resource needed. Scotland has a comparative advantage in producing firewood, while Iceland has a comparative advantage in producing wool. If the two nations trade with each other,
C. Scotland should export firewood and Iceland should export wool
When a country exports fewer goods and services than it improts, this is called
C. a balance of trade deficit
If a nation A can produce a product at a lower opportunity cost per unit than nation B, nation A
C. has a comparative advantage
If a nation has a ______ in the production of an item, it can produce _____ of the item with the same quantity of resources than can other nations.
A. absolute advantage; more
An import quota does which of the following?
B. Increase the price of the domestic good to the consumre
The introduction of a tariff will be expected to
A. reduce imports
An import quota is
E. a limit on the quantiy of foreign goods that can be sold in a nation’s domestic market
