1) consumers' surplusis the difference between the price a sellers receive for a good and the maximum price they would have paid for the good. b sellers receive for a good and the minimum price for which they could have sold the good. c buyers pay for a good and the maximum price they would have paid for the good. d buyers pay for a good and the minimum price for which they would have sold the good Question 2) Question 4 The sale of goods abroad at a price below their cost and below the price charged in the domestic market is called Question options: a priming. b coping. c invading. d dumping Question 3) Question 5 If merchandise exports in a given year are $400 billion and merchandise imports are $450 billion, then the Question options: a current account balance is +$50 billion. b current account balance is -$50 billion. c merchandise trade balance is -$50 billion and it is in deficit. d merchandise trade balance is +$50 billion and it is in surplus. e merchandise trade balance is +$50 billion and it is in deficit Question 4) You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the dollar. It follows that Question options: a you will be able to buy more goods and services in Mexico. b you will be able to buy fewer goods and services in Mexico. c the purchasing power parity theory is incorrect. d Mexican workers, paid in pesos, will be able to buy fewer goods and services in Mexico Question 5) A "devaluation" occurs when Question options: a. the official price of a currency is raised. b. the official price of a currency is lowered. c. a nation's currency depreciates under a flexible exchange rate system. d. a nation's currency appreciates under a flexible exchange rate system. e. none of the above Question 6) There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that Question options: a the dollar will appreciate and the peso will depreciate. b both the dollar and the peso will appreciate, although the peso will appreciate before the dollar appreciates. c the dollar will depreciate and the peso will appreciate. d both the dollar and the peso will depreciate, although the peso will depreciate before the dollar depreciates. e There is not enough information to answer the question. Question 7 An American computer is priced at $1,000. If the exchange rate between the U.S. dollar and the Mexican peso is $0.) 093 = 1 peso, approximately how many pesos will a Mexican buyer pay for the computer? Question options: a. 10,753 pesos b. 93 pesos c. 19,243 pesos d. 1,075 pesos Question 8) Aquotais Question options: a a tax imposed on imported goods. b a legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country. c a legal limit on the amount of a good that can be imported. d an agreement between two countries in which the exporting country voluntarily agrees to limit its exports to the importing country