International Econ #1

Which result would you expect from a U.S. import quota on automobiles?

• lower automobile prices for U.S. customers

• higher automobile prices for U.S. customers

• fewer domestic jobs in the automobile industry

• more foreign automobiles flowing into the U.S

Decreased tariffs between the nations of U.S., Mexico, and Canada

All three Countries experienced real wage increases

Increased trade between the U.S., Mexico and Canada

Created more jobs for all three countries

What is this list describing?

• EU

• NAFTA

• ASEAN

• OPEC

Which factor would be LEAST LIKELY to be included in a measurement of the efficiency of trade between African nations?

• financial cost associated with importing or exporting goods

• an analysis of who is wanting the types of goods being traded

• the number of legal documents required to import or export goods

• amount of time it takes to complete the import or export process

The nation of Tupalow is outraged that the Republic of Za has repeatedly violated international human rights laws. As a result, Tupalow has decided not to export goods to or import goods from Za. What is such an action called?

• tariff

• unfavorable balance of trade

• trade treaty

• embargo

"Eliminating tariffs and import duties will benefit producers and consumers in all nations."

This sounds MOST like an argument for

• free trade

• import quotas

• market economics

• unbridled competition

In 2002, Canada, Mexico, and Japan were the largest trading partners of the United States. The respective order is MOST LIKELY due to

• ASEAN.

• EU.

• NAFTA.

• OPEC

Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage?

• A country with an absolute advantage will always have a comparative advantage in producing products.

• A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage.

• A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products.

• A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.

If the the United States exports $100 million of goods and imports $150 million, what does the United States have?

• a trade deficit

• a trade surplus

• a budget deficit

• a budget surplus

If you were doing a presentation about "balance of trade," which journal entry would likely be the MOST helpful?

• "Exports Take a Strong Hit in 3rd Quarter"

• "Prices of Foreign Cars Remain Constant"

• "Farmers Face a Tough Drought Situation"

• "Stock Prices Soar With Economic Forecast"

When one country can produce a product more cheaply than another country can, this is called

• a tariff.

• free trade.

• comparative advantage.

• economic interdependence.