Answer Choices:
a) Imports.
b) Exports.
c) Net imports.
d) Net exports.
Answer: a) Imports. (As the marked answer “Exports” is incorrect; exports refer to domestically produced goods sold internationally.)
Question: Which of the following changes would not shift the demand curve for a good or service?
Answer Choices:
a) A change in income
b) A change in the price of the good or service
c) A change in expectations about future price of the good or service
d) A change in the price of a related good or service
Answer: b) A change in the price of the good or service
Question: A monopoly is a market:
Answer Choices:
a) With one seller, and that seller sets a price taker.
b) With one seller, and that seller sets the price.
c) With one buyer.
d) In which competition has reached its highest form.
Answer: b) With one seller, and that seller sets the price.
Question: When a country allows trade and becomes an importer of a good,
Answer Choices:
a) Both domestic producers and domestic consumers become better off.
b) Domestic producers become better off, and domestic consumers become worse off.
c) Domestic producers become worse off, and domestic consumers become better off.
d) Both domestic producers and domestic consumers become worse off.
Answer: c) Domestic producers become worse off, and domestic consumers become better off.
Question: Which of the following forms of Regionalism have a common trade policy with outsiders?
Answer Choices:
a) Custom Union
b) Common Market
c) Economic Union
d) All of the above
Answer: d) All of the above.
Question: When the U.S. dollar depreciates against the Japanese Yen
Answer Choices:
a) U.S. exports to Japan are hurt
b) U.S. importers of Japanese goods are hurt
c) U.S. travelers to Japan are better off
d) All of the above
Answer: b) U.S. importers of Japanese goods are hurt
Question: Two goods are complements if a decrease in the price of one good:
Answer Choices:
a) Decreases the quantity demanded of the other good.
b) Decreases the demand for the other good.
c) Increases the quantity demanded of the other good.
d) Increases the demand for the other good.
Answer: d) Increases the demand for the other good.
Question: Trade among nations is ultimately based on
Answer Choices:
a) Absolute advantage.
b) Strategic advantage.
c) Comparative advantage.
d) Technical advantage.
Answer: c) Comparative advantage. (This is the correct answer as comparative advantage is the concept that a country should specialize in producing and exporting goods and services that it produces most efficiently, while importing the goods and services that other countries produce more efficiently.)
Question: Which of the following would not be a determinant of the demand for a particular good?
Answer Choices:
a) Income
b) Prices of related goods
c) Tastes
d) The prices of the inputs used to produce the good
Answer: d) The prices of the inputs used to produce the good