1. Which of the following examines the reasons for and effects of trade restriction? A. Balance of...
Question:
1. Which of the following examines the reasons for and effects of trade restriction?
A. Balance of payments.
B. Foreign exchange market.
C. International trade policy.
D. International trade theory.
2. The open-economy macroeconomic processes for correcting balance of payments disequilibria are collectively called:
A. Discretionary fiscal policy.
B. Foreign Exchange market.
C. Monetary policy.
D. Adjustment in the balance of payments
3. The economic relationship and integration among nations is defined as:
A. Microeconomics.
B. Economic Interdependence.
C. International trade.
D. Open economics.
4. Which of the following is most restricted to flow across national boundaries?
A. People.
B. Capital flows.
C. Financial and Portfolio Investment.
D. Foreign Direct Investment.
5. The increase in consumption in each nation resulting from specialization in production and trading is referred to:
A. Basis of trade.
B. Losses from trade.
C. Gains from trade.
D. Pattern of trade.
6. The school of thought during the seventeenth and eighteenth centuries proposing that the way for a nation to become richer was to restrict imports and stimulate exports was:
A. Mercantilists.
B. Classical school.
C. Laissez faire.
D. Keynesian school.
7. If wage in country A is $6/hour and in country B is £2/hour, and the exchange rate between a $ and a £ is £1=$2, then given the information in the table, which of the following is true?
Country A Country B
Apple ( bushels/hour ) 8 1
Orange ( bushels/hour ) 2 3
____________________________________
A. $0.75.
B. $1.33.
C. $3.00.
D. $4.00.
8. The ratio of one commodity price to the price of another commodity is called (the)
- Absolute advantage.
- Relative commodity price.
- Constant opportunity costs.
- Increasing opportunity costs
9. Which of these economists considered comparative advantage in production to be the basis for trade between nations?
A. Adam Smith.
B. Alfred Marshall.
C. David Ricardo.
D. David Hume.
10. According to the following table, if the US trades 9 bushels of wheat the UK for 9 yards of cloth, the US gains from trade will equal: U. S. U. K. Wheat ( bushels/hour)93
Cloth ( yards/hour ) 5 4
A. 4 bushels of wheat.
B. 3 yards of cloth.
C. 4 yards of cloth.
D. 5 bushels of wheat.
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young