International Trade

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions
AP Macroeconomics International Trade and Finance Questions from the 2005 AP Macroeconomics Released Exam 15. Which of the following best explains why many United States economists suppo t f ee inte national t ade! "#$ Wo %e s who lose thei &obs can collect unemployment compensation. "'$ (t is mo e impo tant to educe wo ld inflation than to educe United States unemployment. "C$ Wo %e s a e not affected) only businesses suffe . "*$ +he long, un gains to consume s and some p oduce s exceed the losses to othe p oduce s. "-$ .o/e nment can p otect United States indust ies while encou aging f ee t ade. 01. (f the eal inte est ate in Count y 2 inc eases elati/e to the eal inte est ate in Count y 3 and the e a e no t ade ba ie s between the two count ies4 then fo count y 2 which of the following will be t ue of its capital flow4 the /alue of its cu ency4 and its expo ts! Capital 5low "#$ "'$ "C$ "*$ "-$ (nflow (nflow (nflow 6utflow 6utflow Cu ency #pp eciation #pp eciation *ep eciation *ep eciation #pp eciation -xpo ts (nc ease *ec ease (nc ease (nc ease *ec ease
70. (f a count y has a cu ent account deficit4 which of the following must be t ue! "#$ "'$ "C$ "*$ "-$ (t must also show a deficit in its capital account. (t must show a su plus in its capital account. (t must inc ease the pu chases of fo eign goods and se /ices. (t must inc ease the domestic inte est ates on its bonds. (t must limit the flow of fo eign capital in/estment
75. With an inc ease in in/estment demand in the United States4 the eal inte est ate ises. (n this situation4 the most li%ely change in the capital stoc% of the United States and in the inte national /alue of the dolla would be which of the following! Capital Stoc% in United States (nte national 8alue of the *olla
#9 Mac oeconomics (nte national + ade and 5inance Multiple Choice Questions f om the 0::: and 0::5 #9 Mac oeconomics ;eleased -xams
"#$ "'$ "C$ "*$ "-$
(nc ease (nc ease (nc ease *ec ease <o change
*ec ease <o change (nc ease (nc ease *ec ease
5=. Which of the following would cause the United States dolla to inc ease in /alue compa ed to the >apanese yen! "#$ "'$ "C$ "*$ "-$ #n inc ease in the money supply in the United States #n inc ease in inte est ates in the United States #n inc ease in the United States t ade deficit with >apan +he United States pu chase of gold on the open ma %et +he sale of ?0 billion dolla s wo th of >apanese tele/ision sets to the United States
@:. #ssume that the supply of loanable funds inc eases in Count y 2. +he inte national /alue of Count y 2As cu ency and Count y 2As expo ts will most li%ely change in which of the following ways! (nte national 8alue of Count y 2As Cu ency *ec ease *ec ease (nc ease (nc ease <ot change Count y 2As -xpo ts *ec ease (nc ease *ec ease (nc ease <ot change
"#$ "'$ "C$ "*$ "-$
0=. ;efe to the abo/e diag ams. +he solid lines a e p oduction possibilities cu /es) the dashed lines a e t ading possibilities cu /es. +he data contained in the p oduction possibilities cu /es a e based on the assumption ofB #$ impe fect shiftability of esou ces as between bee and piCCa p oduction. '$ constant costs. C$ dec easing costs. *$ inc easing costs. #nswe B ' D:. ;efe to the abo/e diag ams. +he solid lines a e p oduction possibilities cu /es) the dashed lines a e t ading possibilities cu /es. +he oppo tunity cost of p oducing aB #$ piCCa is 0 bee s in both count ies. C$ piCCa in -ast Eothian is 1 bee . '$ bee is 1F0 a piCCa in both count ies. *$ bee in West Eothian is 1F0
a piCCa. #nswe B * D1. ;efe to the abo/e diag ams. +he solid lines a e p oduction possibilities cu /es) the dashed lines a e t ading possibilities cu /es. +he data suggest thatB #$ West Eothian should specialiCe in4 and expo t4 bee . '$ both count ies will be bette off if they do not engage in specialiCation and t ade in/ol/ing these two p oducts. C$ West Eothian should specialiCe in4 and expo t4 piCCa. *$ -ast Eothian should specialiCe in4 and expo t4 bee . #nswe B # D0. ;efe to the abo/e diag ams. +he solid lines a e p oduction possibilities cu /es) the dashed lines a e t ading possibilities cu /es. +he t ading possibilities cu /es imply thatB #$ both count ies ha/e a t ade su plus that will esult in economic g owth. '$ the domestic p oduction possibilities cu /es entail unemployment andFo the domestic misallocation of esou ces. C$ wo ld esou ces will be allocated mo e efficiently if the two nations specialiCe and t ade based on compa ati/e ad/antage. *$ both nations will be wo se off as a esult of inte national specialiCation and t ade. #nswe B C DD. ;efe to the abo/e diag ams. +he solid lines a e p oduction possibilities cu /es) the dashed lines a e t ading possibilities cu /es. +he t ading possibilities cu /es suggest that the te ms of t ade a eB #$ 1.5 bee s fo 1 piCCa. '$ 1 bee fo 0 piCCas. C$ 0 bee s fo 1 piCCa. *$ 1 bee fo 1.5 piCCas. #nswe B *
Questions from the 2000 AP Macroeconomics Released Exam 15. #n inc ease in >apanAs demand fo United States goods would cause the /alue of the dolla to "#$ *ep eciate because of inflation "'$ *ep eciate because the United States would be selling mo e dolla s to >apan "C$ *ep eciate because the United States money supply would inc ease as expo ts ise "*$ #pp eciate because >apan would be buying mo e United States dolla s "-$ #pp eciate because >apan would be selling mo e United States dolla s D:. Which of the following changes will occu to the demand fo United States dolla s and the inte national /alue of the dolla in the sho t un if in/esto s in the United States and ab oad inc ease thei pu chases of United States go/e nment bonds! (nte national 8alue *emand fo *olla s of the *olla "#$ *ec ease *ec ease "'$ *ec ease (nc ease "C$ *ec ease <o change "*$ (nc ease *ec ease "-$ (nc ease (nc ease D1. #s nations specialiCe in p oduction and t ade in inte national ma %ets4 they can expect which of the following domestic imp o/ements! (. #llocation of domestic esou ces ((. Standa d of li/ing (((. Self,sufficiency "#$ "'$ "C$ "*$ "-$ ( only (( only ((( only ( and (( only (4 ((4 and (((
75. Which of the following would be most li%ely to occu if the United States placed high ta iffs on impo ted goods! "#$ "'$ "C$ "*$ "-$ Wo %e s in the United States would ha/e mo e &obs in the long un. (ncome in the United States would be edist ibuted f om the ich to the poo . +he United States standa d of li/ing would inc ease. +he United States economy would become less efficient. United States expo ts would inc ease. Answers to 2005 Questions w Ex!lanation
15. Which of the following best explains why many United States economists suppo t f ee inte national t ade! "*$ +he long, un gains to consume s and some p oduce s exceed the losses to othe p oduce s. Use the following to answe Guestions 7:,71B
7:. +he p oduction possibilities cu /es abo/e suggest thatB #$ West Mud/ille should specialiCe in4 and expo t4 baseball bats. '$ West Mud/ille should specialiCe in4 and expo t4 both baseballs and baseball bats. C$ -ast Mud/ille should specialiCe in4 and expo t4 baseball bats. *$ wo %e s will t y to immig ate f om West Mud/ille to -ast Mud/ille. #nswe B # 71. #ssuming labo fo ces of eGual siCe4 the p oduction possibilities cu /es abo/e suggest that wo %e s in West Mud/ille will ha/eB #$ lowe wages than wo %e s in -ast Mud/ille befo e t ade but eGual wages afte t ade. '$ highe wages than wo %e s in -ast Mud/ille both befo e and afte t ade. C$ lowe wages than wo %e s in -ast Mud/ille both befo e and afte t ade. *$ highe wages than wo %e s in -ast Mud/ille befo e t ade but lowe wages afte t ade. #nswe B ' 70. (f a nation has a compa ati/e ad/antage in the p oduction of 24 this means the nationB #$ cannot benefit by p oducing and t ading this p oduct. '$ must gi/e up less of othe goods than othe nations in p oducing a unit of 2. C$ has a p oduction possibilities cu /e identical to those of othe nations. *$ is not sub&ect to inc easing oppo tunity costs. #nswe B ' 7D. ;efe to the abo/e g aphs. Stan/ille has a compa ati/e ad/antage in p oducingB #$ p oduct #. '$ p oduct '. C$ both p oduct # and '. *$ neithe p oduct # no '. #nswe B ' 77. ;efe to the abo/e g aphs. +e y/ille has a compa ati/e ad/antage in p oducingB #$ p oduct #. '$ p oduct '. C$ both p oduct # and '. *$ neithe p oduct # no '. #nswe B # 75. ;efe to the abo/e g aphs. +hese p oduction possibilities cu /esB #$ demonst ate that the e can be gains f om specialiCation and t ade between the two nations. '$ eflect the law of inc easing oppo tunity costs.
C$ eflect the law of diminishing ma ginal utility. *$ imply that specialiCation will be incomplete. #nswe B # Use the following to answe Guestions 7@,5:B #nswe the next Guestion"s$ on the basis of the following p oduction possibilities data fo two count ies4 #lpha and 'eta4 which ha/e populations of eGual siCe. #lphaHs p oduction possibilitiesB #'C*5ish "tons$ I: @: 7: 0: : Chips "tons$ : 5 1: 15 0: 'etaHs p oduction possibilitiesB #''C5ish "tons$ 07: 1I: 10: @: : Chips "tons$ : 1: 0: D: 7: 7@. +he abo/e data show thatB #$ 'eta has a compa ati/e ad/antage in p oducing chips. '$ #lpha has a compa ati/e ad/antage in catching fish. C$ #lpha is sub&ect to constant costs and 'eta is sub&ect to inc easing costs. *$ 'eta is mo e efficient than #lpha both in catching fish and in p oducing chips. #nswe B *Chapte D1B (nte national + ade 71. ;efe to the abo/e data. +he domestic oppo tunity cost ofB #$ p oducing a ton of chips in #lpha is 1F5 of a ton of fish. '$ p oducing a ton of chips in 'eta is @ tons of fish. C$ catching a ton of fish in #lpha is 5 tons of chips. *$ catching a ton of fish in 'eta is @ tons of chips. #nswe B ' 7I. ;efe to the abo/e data. 'etaB #$ should specialiCe in catching fish and t ade with #lpha fo chips. '$ should specialiCe in p oducing chips and t ade with #lpha fo fish. C$ will not ealiCe gains f om specialiCation and t ade. *$ will expo t both fish and chips to #lpha. #nswe B # 7=. ;efe to the abo/e data. Suppose that befo e specialiCation and t ade #lpha chose p oduction alte nati/e C and 'eta chose p oduction alte nati/e '. #fte specialiCation and t ade the gains will beB #$ 0: tons of fish. C$ 0: tons of fish and 0: tons of chips. '$ 0: tons of chips. *$ 07: tons of fish and 0: tons of chips. #nswe B #
5:. ;efe to the abo/e data. #ssume the p oduction possibilities in 'eta double at alte nati/es # th ough while emaining as shown in the table fo #lpha. #s a esult 'eta shouldB #$ continue to specialiCe in p oducing chips. '$ continue to specialiCe in fishing. C$ no longe specialiCe and t ade. *$ specialiCe both in fishing and in p oducing chips and sell the su plus to #lpha. #nswe B ' Chapte D1B (nte national + ade
51. ;efe to the abo/e diag am in which line #' is the United States p oduction possibility cu /e and #C is its t ading possibilities cu /e. We can conclude that the United StatesB #$ has chosen to specialiCe in the p oduction of cheese. '$ has chosen to specialiCe in the p oduction of beef. C$ has decided to t ade beef fo cheese. *$ is elati/ely mo e efficient than its t ading pa tne s in p oducing both cheese and beef. #nswe B # 50. ;efe to the abo/e diag am in which line #' is the United States p oduction possibility cu /e and #C is its t ading possibilities cu /e. +he inte national exchange atio between beef and cheese "te ms of t ade$B #$ is the absolute /alue of slope of line #'. '$ is the absolute /alue of slope of line #C. C$ could lie anywhe e between the absolute /alue of the slopes of lines #' and #C. *$ cannot be dete mined on the basis of this info mation. #nswe B ' 5D. +he impact of inc easing4 as opposed to constant4 costs is toB #$ intensify and p olong the compa ati/e ad/antages that any nation may ha/e initially. '$ expand the limits of the te ms of t ade. C$ cause the bases fo fu the specialiCation to disappea as nations specialiCe acco ding to compa ati/e ad/antage. *$ cause nations to ealiCe economies of scale in those p oducts in which they specialiCe. #nswe B C Chapte D1B (nte national + ade 57. (n the eal wo ld4 specialiCation is a ely complete becauseB
#$ nations no mally expe ience inc easing oppo tunity costs in p oducing mo e of the p oduct in which they a e specialiCing. '$ p oduction possibilities cu /es a e st aight lines athe than cu /es bowed outwa d as /iewed f om the o igin. C$ one nationHs impo ts a e necessa ily anothe nationHs expo ts. *$ inte national law p ohibits monopolies. #nswe B # 55. +he law of inc easing oppo tunity costsB #$ applies to land,intensi/e commodities4 but not to labo ,intensi/e o capital,intensi/e commodities. '$ esults in st aight,line p oduction possibilities cu /es athe than cu /es that a e bowed outwa d f om the o igin. C$ efutes the p inciple of compa ati/e ad/antage. *$ may limit the extent to which a nation specialiCes in p oducing a pa ticula p oduct. #nswe B * 5@. Suppose the domestic p ice "no,inte national,t ade p ice$ of coppe is ?1.0: a pound in the United States while the wo ld p ice is ?1.:: a pound. #ssuming no t anspo tation costs4 the United States willB #$ ha/e a domestic su plus of coppe . C$ impo t coppe . '$ expo t coppe . *$ neithe expo t no impo t coppe . #nswe B C 51. Suppose the domestic p ice "no,inte national,t ade p ice$ of wheat is ?D.5: a bushel in the United States while the wo ld p ice is ?7.:: a bushel. #ssuming no t anspo tation costs4 the United States willB #$ ha/e a domestic sho tage of wheat. C$ impo t wheat. '$ expo t wheat. *$ neithe expo t no impo t wheat. #nswe B ' 5I. # nationHs impo t demand cu /e fo a specific p oductB #$ is upsloping. '$ shows the amount of the p oduct it will impo t at p ices below its domestic p ice. C$ lies abo/e its expo t supply cu /e fo the p oduct. *$ depends on domestic demand fo the p oduct4 but not on domestic supply. #nswe B ' 5=. # nationHs expo t supply cu /e fo a specific p oductB #$ is upsloping. '$ shows the amount of the p oduct it will expo t at p ices below its domestic p ice. C$ lies below its impo t demand cu /e fo the p oduct.
*$ depends on domestic supply of the p oduct4 but not on domestic demand. #nswe B #Chapte D1B (nte national + ade @:. # nation will neithe expo t no impo t a specific p oduct when itsB #$ domestic p ice "no,inte national,t ade p ice$ eGuals the wo ld p ice. '$ expo t supply cu /e lies abo/e its impo t demand cu /e. C$ expo t supply cu /e is upsloping. *$ impo t demand cu /e is downsloping. #nswe B # @1. -xpo t supply cu /es a e JJJJJJJJJJJJJJJJJJ) impo t demand cu /es a e JJJJJJJJJJJJJJJJJJJ. #$ ho iContal) /e tical C$ downsloping) upsloping '$ /e tical) ho iContal *$ upsloping) downsloping #nswe B * Use the following to answe Guestions @0,@7B
@0. ;efe to the abo/e diag am showing the domestic demand and supply cu /es fo a specific standa diCed p oduct in a pa ticula nation. (f the wo ld p ice fo this p oduct is ?1.@:4 this nation will expe ience a domesticB #$ sho tage of 1@: units4 which it will meet with 1@: units of impo ts. '$ sho tage of 1@: units4 which will inc ease the domestic p ice to ?1.@:. C$ su plus of 1@: units4 which it will expo t. *$ su plus of 1@: units4 which will educe the wo ld p ice to ?1.::. #nswe B C @D. ;efe to the abo/e diag am showing the domestic demand and supply cu /es fo a specific standa diCed p oduct in a pa ticula nation. (f the wo ld p ice fo this p oduct is ?.5:4 this nation will expe ience a domesticB #$ sho tage of 1@: units4 which it will meet with 1@: units of impo ts. '$ sho tage of 1@: units4 which will inc ease the domestic p ice to ?1.@:. C$ su plus of 1@: units which it will expo t. *$ su plus of 1@: units4 which will educe the wo ld p ice to ?1.::. #nswe B # Chapte D1B (nte national + ade @7. ;efe to the abo/e diag am showing the domestic demand and supply cu /es fo a specific standa diCed p oduct in a pa ticula nation. (f the wo ld p ice of this p oduct is ?14 this nation willB
#$ expo t all of the p oduct. '$ impo t all of the p oduct. C$ impo t some of the p oduct and p oduce some of the p oduct domestically. *$ neithe expo t no impo t the p oduct. #nswe B * @5. (n a two,nation model4 the eGuilib ium wo ld p ice will occu whe eB #$ one nationHs expo t supply cu /e inte sects the othe nationHs impo t demand cu /e. '$ expo ts a e exactly twice the le/el of impo ts. C$ both nationsH expo t supply cu /es a e ho iContal. *$ both nationsH impo t demand cu /es a e /e tical. #nswe B # Use the following to answe Guestions @@,11B
@@. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. Eines 5# and .' a eB #$ domestic supply cu /es fo two count ies. C$ impo t demand cu /es fo two count ies. '$ domestic demand cu /es fo two count ies. *$ expo t supply cu /es fo two count ies. #nswe B * @1. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. Eines 5C and .* a eB #$ domestic supply cu /es fo two count ies. C$ impo t demand cu /es fo two count ies. '$ domestic demand cu /es fo two count ies. *$ expo t supply cu /es fo two count ies. #nswe B C @I. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. 9oint . is theB #$ domestic p ice fo the nation ep esented by lines 5# and 5C. '$ wo ld eGuilib ium p ice. C$ domestic p ice fo the nation ep esented by lines .' and .*. *$ p ice abo/e the wo ld eGuilib ium p ice. #nswe B C @=. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. (n eGuilib ium4 the nation ep esented by lines 5# and 5C willB #$ expo t K to the count y ep esented by lines .' and .*. '$ impo t K f om the count y ep esented by lines .' and .*. C$ pay p ice 5 fo its impo ts. *$ ecei/e p ice . fo its expo ts. #nswe B '
10
1:. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. +he eGuilib ium wo ld p ice occu s atB #$ 5 '$ ( C$ . *$ > #nswe B ' 11. ;efe to the abo/e diag am pe taining to two nations and a specific p oduct. +he eGuilib ium le/el of expo ts and impo ts occu s atB #$ K4 whe e .' and 5C inte sect. '$ >4 whe e the /e tical distance between # and ' &ust eGuals the /e tical distance between C and * . C$ wo ld p ice le/el 5. *$ wo ld p ice le/el ..
Ex!lanation" #lthough f ee t ade c eates both winne s and lose s4 the gains f om t ade outweigh the costs. 5 ee t ade allows count ies to expe ience a le/el of consumption in excess of thei le/el of p oduction. 5u the mo e4 e/idence indicates that count ies engaging in f ee t ade tend to en&oy a highe standa d of li/ing than count ies that tend to be mo e p otectionist with ega ds to t ade.
01. (f the eal inte est ate in Count y 2 inc eases elati/e to the eal inte est ate in Count y 3 and the e a e no t ade ba ie s between the two count ies4 then fo count y 2 which of the following will be t ue of its capital flow4 the /alue of its cu ency4 and its expo ts! Capital 5low "'$ (nflow Cu ency #pp eciation -xpo ts *ec ease
Ex!lanation" Count y 2As elati/ely highe eal inte est ates p o/ides an incenti/e fo financial in/esto s in Count y 3 to pu chase Count y 2As financial assets "bonds$. +his acti/ity c eates an inflow to the capital account fo Count y 2. 'efo e Count y 3As financial in/esto s a e able to pu chase Count y 2As financial assets4 they must fi st engage in fo eign exchange. +o pu chase Count y 2As financial assets4 Count y 3As in/esto s must supply Count y 3As cu ency and demand Count y 2As cu ency. +his causes Count y 2As cu ency to app eciate in /alue. -xpo ts then dec ease because Count y 2As app eciated cu ency ma%es Count y 2As goods and se /ices elati/ely mo e expensi/e.
11
#ET $%&'TR( )*s $&RRE'$( + , and $%&'TR( (*s $&RRE'$( + (

(, e.
/
e 0. Q Q. 0 Q,
70. (f a count y has a cu ent account deficit4 which of the following must be t ue! "'$ (t must show a su plus in its capital account. Ex!lanation" (n the long un4 the balance of payments eGuals Ce o. *eficits in one account will be offset by su pluses in the othe account.
75. With an inc ease in in/estment demand in the United States4 the eal inte est ate ises. (n this situation4 the most li%ely change in the capital stoc% of the United States and in the inte national /alue of the dolla would be which of the following! Capital Stoc% in United States "C$ (nc ease (nte national 8alue of the *olla (nc ease
Ex!lanation" Capital stoc% inc eased because of the inc ease in g oss p i/ate in/estment. +his occu ed because of the inc eased in/estment demand. +he esulting highe eal inte est ate p o/ided an incenti/e fo fo eign in/esto s to see% highe eal ates of etu n in the United States. +his financial in/estment4 in tu n4 eGui ed fo eign exchange. 5o eigne s had to supply thei cu ency and demand dolla s in the fo eign exchange ma %et4 which esulted in an inc ease in the inte national /alue of the dolla . 1F$ + Forei2n $urrenc34
F$ ,
12
e.
/
e 0. Q Q. 0 Q,
5=. Which of the following would cause the United States dolla to inc ease in /alue compa ed to the >apanese yen! "'$ #n inc ease in inte est ates in the United States Ex!lanation" +he highe eal inte est ate p o/ides an incenti/e fo >apanese in/esto s to see% highe eal ates of etu n in the United States. +his financial in/estment necessitates fo eign exchange. +he >apanese supply yen and demand dolla s in the fo eign exchange ma %et4 which esults in an inc ease in the /alue of the dolla elati/e to the yen "3$.
(, e.
/
e 0. Q Q. 0 Q,
@:. #ssume that the supply of loanable funds inc eases in Count y 2. +he inte national /alue of Count y 2As cu ency and Count y 2As expo ts will most li%ely change in which of the following ways! (nte national 8alue of Count y 2As Cu ency "'$ *ec ease Count y 2As -xpo ts (nc ease
Ex!lanation" (nc eased supply of loanable funds will educe the eal inte est ate in Count y 2. 2 will see% highe etu ns ab oad and supply 2As cu ency in fo eign exchange4 which esults in the cu ency dep eciating. -xpo ts will then inc ease because 2As goods and se /ices will be elati/ely less expensi/e.
13
Answers to 2000 Questions w Ex!lanation 15. #n inc ease in >apanAs demand fo United States goods would cause the /alue of the dolla to "*$ #pp eciate because >apan would be buying mo e United States *olla s Ex!lanation" (n o de fo >apanese consume s to pu chase #me ican goods4 >apanese yen "3$ must be supplied in fo eign exchange and #me ican dolla s must be demanded. +he inc eased demand fo the dolla causes it to app eciate in /alue.
(, e.
/
e 0. Q Q. 0 Q,
D:. Which of the following changes will occu to the demand fo United States dolla s and the inte national /alue of the dolla in the sho t un if in/esto s in the United States and ab oad inc ease thei pu chases of United States go/e nment bonds! *emand fo *olla s "-$ (nc ease (nte national 8alue of the *olla (nc ease
e.
Ex!lanation" 6nce againL F$ ,
14
e 0. Q Q. 0 Q,
D1. #s nations specialiCe in p oduction and t ade in inte national ma %ets4 they can expect which of the following domestic imp o/ements! (. #llocation of domestic esou ces ((. Standa d of li/ing (((. Self,sufficiency "*$ ( and (( only Ex!lanation" When a nationAs people specialiCe and t ade4 they can expect inc eased efficiency in thei economy. +his esults in imp o/ed allocation of domestic esou ces towa ds thei best use and a gene al inc ease in the standa d of li/ing. With specialiCation and t ade people become mo e inte dependent and less self,sufficient.
75. Which of the following would be most li%ely to occu if the United States placed high ta iffs on impo ted goods! "*$ +he United States economy would become less efficient Ex!lanation" Kigh ta iffs would p otect less efficient domestic p oduce s f om fo eign competition. #s a esult4 domestic esou ces that could be put to mo e efficient use a e dedicated to a less efficient pu pose.
15

International Trade

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

International Trade

Uploaded by

Copyright:

Available Formats

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

"#$ "'$ "C$ "*$ "-$

"#$ "'$ "C$ "*$ "-$

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

#ET $%&'TR( )s $&RRE'$( + , and $%&'TR( (s $&RRE'$( + (

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

Ex!lanation" 6nce againL F$ ,

Multiple Choice Questions Multiple Choice Questions Multiple Choice Questions

You might also like