2024 Fall BMF2 Exam

Front

What is a true statement about how specialization increases productivity in a nation? If a nation has an absolute advantage for producing a specific product, it should produce that product. It allows a nation to allocate its resources more efficiently.

Back

It allows a nation to allocate its resources more efficiently.

Front

We can also call a trade surplus a(n)

Back

Positive Balance of Trade

Front

It was founded in 1995 to ensure compliance with GATT to negotiate trade agreements and to resolve trade disputes.

Back

WTO

Front

These are determined by the supply and demand for a certain currency.

Back

Exchange Rates

Front

This is an argument FOR protectionism.

Back

Jobs go overseas in favor of cheaper labor.

Front

Which of these is NOT a trade bloc? ASEAN, WTO, NAFTA, EU

Back

WTO

Front

A good sent to another country for sale is called what?

Back

Export

Front

How some countries avoid the negative market effects of having a strong currency.

Back

Floating Exchange Rates

Front

What happens if Canada’s currency appreciates?

Back

Canada’s exports become more expensive.

Front

Nation A imports $500 and exports $300. Nation B imports $250 and exports $275. What is a true statement about nations A and B?

Back

Nation A has a trade deficit and Nation B has a trade surplus.