ECON 101 Lecture Notes - Lecture 24: Autarky, International Trade, Free Trade
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Today, in the Unitedâ States, exports are about
A.
28 percent of GDP.
B.
90 percent of GDP.
C.
14 percent of GDP.
D.
4 percent of GDP.
Which of the following statements isâ FALSE?
A.
Sophisticated financial systems have given U.S. productive efficiency a boost.
B.
When it comes to overall productiveâ efficiency, compared toâ Japan, Germany and the rest of the Europeanâ Union, the United States lags far behind.
C.
Economic restructuring and investments in information technology have added to productive efficiency in the United States.
D.
The Unitedâ States' international competitive position has been helped by its long history of widespread entrepreneurship.
One problem with the infant industry argument is that
A.
it fails to protect domestic industries from foreign competition.
B.
it must be approved by the Federal Reserve Board.
C.
it must be approved by the IMF and the World Bank.
D.
the protection is typically neverâ removed, creating a domestic monopoly.
When a tariff isâ imposed, the supply curve for the imported good
A.
shifts upward and to the left.
B.
shifts downward and to the right.
C.
becomes perfectly inelastic.
D.
does not change.
The WTO replaced the GATT in
A.
1900.
B.
1995.
C.
1960.
D.
1945.
The World Trade Organization
A.
increases world trade by providing interest rate subsidies to foreign borrowers who buy U.S. exports on credit.
B.
was established to settle trade disputes within the European Union.
C.
was established to resolve disputes arising under world trade rules.
D.
is another name for the IMF.
Trade deflection is an act that
A.
has no impact on the amount of international trade in the world.
B.
is illegal among all countries in the world.
C.
decreases the amount of international trade in the world.
D.
increases the amount of international trade in the world.
| The Number of Worker Days to Produce One Cuckoo Clock or Movie Using All Available Resources | ||
| Product | United States â (WorkerminusââDays) | Switzerland â (WorkerminusââDays) |
| Cuckoo Clocks | 8 | 6 |
| Movies | 12 | 4 |
Refer to the above table. Assuming constant opportunityâ costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock.
A.
U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange.
B.
U.S. residents would be willing to export cuckooâ clocks, but Swiss residents would not gain from exporting movies at this rate of exchange.
C.
Swiss residents would be willing to exportâ movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange.
D.
U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
The balance of payments is
A.
a summary record of aâ country's purchases and sales of goods and services in the world market.
B.
a summary record of aâ country's economic transactions with foreign residents and governments.
C.
the value of goods and services bought and sold in the world market.
D.
the value of merchandise goods bought and sold in the world market.
