INCORRECT | | Over the past several years, the volume of world trade has: | | | A) | decreased because of increased government regulation of trade through tariffs and quotas | | | B) | decreased because of the decline in incomes brought on by global recession | | | C) | increased because of increased government regulation of trade through tariffs and quotas | | | D) | increased because of improvements in communications and transportation | | | | | | Feedback: Trade has increased for two important reasons— a worldwide reduction in tariffs and the advent of new technologies in communications and transportation. | | 2 CORRECT | | A tariff: | | | A) | raises the price of imported goods, increasing the …show more content…
| | 5 INCORRECT | | Which of the following will tend to increase U.S. exports to Mexico and reduce Mexican exports to the U.S.? | | | A) | A decrease in the dollar price of the peso | | | B) | An appreciation of the dollar relative to the peso | | | C) | A depreciation of the peso relative to the dollar | | | D) | An increase in the dollar price of the peso | | | | | | Feedback: An increase in the dollar price of the peso—an appreciation of the peso and depreciation of the dollar—reduces the price of U.S. exports and increases the price of Mexican exports. | | 6 INCORRECT | | Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta: In Beta, the domestic opportunity cost of one unit of good X is: | | | A) | 1 unit of Y | | | B) | 1.5 units of Y | | | C) | 2 units of X | | | D) | 3 units of Y | | | | | | Feedback: In Beta, increasing X production by 2 units requires the sacrifice of 3 units of Y. Therefore each one unit of X would require sacrificing 1.5 units of Y. | | 7 INCORRECT | | Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta: According to the concept of comparative advantage: | | | A) | Alpha should specialize in the production of X; Beta in the production of Y
Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?
A. Assume that country A and country B decide to use half of the resources in the production of each good. Indicate the points of the maximum output of each good on the graphs for each country as point A under such resource use.
An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from
Consider the production schedules for two fictional countries, Ying and Tai. Both countries can only produce two types of goods, Lychees and Teacups. The rows a to e depict the possible combinations of these two goods that each country can produce. Ying Number of Number of Lychees Teacups 0 12 2 Tai Number Lychees 4
between the three countries. By the end of the 1900s there were 4,000 factories in
Q1. In trade between Australia and Japan, which country should specialise in beef production and which country should specialise in car production? Which country will export cars and import beef? (2 marks)
Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.
lower the value of the dollar because the U.S. will be a less attractive place to invest in
1) Approximately three-fourths of the world's industrial production is concentrated in four regions. Which of the following is not one of these four regions?
1. Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? Should be built with the capacity to supply to regional factories. The plants should be flexible enough to produce a number of different models.
5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)
Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,
Using the same amount of resources to produce two goods. Draw PPF curve and explain the reason of each question.
2. At what level of demand (in pounds) per year would these two alternatives be equal?