Trade, Finance, Business and Markets

In considering whether to specialize in a certain product for export, a nation must calculate its

• absolute advantage

• comparative advantage

A supporter of the WTO would argue that the standard of living in all nations engaging in trade will increase

• true

• false

In the 1990s, the USA, Mexico, and Canada formed NAFTA in order to increase economic cooperation between the three nations

• true

• false

The price of a nations currency stated in the currencies of other nations is called

• foreign exchange markets

• foreign exchange credits

• foreign exchange rates

• foreign exchange balances

Competition

• lowers prices

• increases quality

• gives variety

• all of these

price takers

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

exists because of patents and copyrights

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

public utilities

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

fast food restaurants

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

many firms, few barriers to entry, similar products, slight control over prices

• perfect competition

• monopolistic competition

• oligopoly

• monopoly