International Economics Review

Front

What Trade barrier is beneficial to both domestic producers and domestic consumers of a good?

Back

subsidy

Front

Turkey trades textiles, food products, and building materials to Germany in exchange for German machinery, technology, and cars. This trade is possible because

Back

each country has comparative advantage in different goods

Front

Someone who strongly opposes a trade barrier like quotas and tariffs would MOST LIKELY argue that the barrier

Back

will lead to higher prices and fewer imported goods

Front

What is MOST LIKELY to happen to US imports and exports if the US dollar becomes stronger relative to other currencies?

Back

imports will increase, exports will decrease

Front

Which situation correctly describes a trade deficit? Options: tariffs are higher than income taxes, exports are greater than imports, tax revenue is higher than government spending, imports are greater than exports

Back

imports are greater than exports

Front

Why is an embargo used in situations where countries have severe political differences?

Back

Embargoes typically ban all trade between two countries

Front

Assume the exchange rate of US dollars to Indian Rupees changes from $1=500 rupees to $1= 200 rupees. Which group will be helped by the change? Options: US exporters of US goods to India, Indian Manufacturing firms, Indian citizens holding US dollars, US importers of Indian goods

Back

US exporters of US goods to India

Front

International trade MOST OFTEN takes place because of differences in

Back

comparative advantage

Front

In most cases, tariffs and quotas harm consumers by causing

Back

higher prices and fewer choices

Front

Which group benefits when the US dollar depreciates against other currencies? Options: US citizens buying foreign goods and services, US citizens traveling in foreign countries, foreign governments with US Treasury Bonds, foreign citizens vacationing in the US

Back

foreign citizens vacationing in the US