Int AB 21:26 Question 1 10 out of 10 points Correct Assume that along a straight PPC curve the United States

could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. Who has the absolute advantage in corn production? Answer Selected Answer: United States Correct Answer: United States Question 2 10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. Who has the absolute advantage in car production? Answer Selected Answer: United States Correct Answer: United States Question 3

10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. The United Staes' opportunity cost of producing one unit of corn is ____ units of car. Answer Selected Answer: Correct Answer: 2/3 2/3 20 / 30 Question 4 10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. Mexico's opportunity cost of producing one unit of corn is ____ units of car. Answer Selected Answer: Correct Answer: 1/2 7 / 14 1/2 Question 5 1/2 7/14 2/3 20/30

10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. Who has the comparative advantage in corn production? Answer Selected Answer: Mexico Correct Answer: Mexico Question 6 10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. Who has the comparative advantage in car production? Answer Selected Answer: United States Correct Answer: United States Question 7 10 out of 10 points

Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. According to the theory of comparative advantage the United States should specialize in _______ production and Mexico should specialize in ______ production, and then ______. Answer Selected Answer: car; corn; engage in trade Correct Answer: car; corn; engage in trade Question 8 10 out of 10 points Correct Assume that along a straight PPC curve the United States could produce, at most, 20 thousand units of cars or 30 thousand bushels of corn. Also assume that along a straight PPC curve Mexico could produce, at most, 7 thousand units of cars or 14 thousand bushels of corn. In order for trade to be beneficial for both countries, the terms must be such that one unit of corn is traded for greater than [a] of car but less than [b] units of car. Specified Answer for: a Specified Answer for: b Correct Answers for: a 7/14 Correct Answers for: b 20/30 Question 9 2/3 1/2 2/3 1/2

10 out of 10 points Correct The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 Answer Selected Answer: South Korea Correct Answer: South Korea Question 10 10 out of 10 points Correct The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities

Who has the absolute advantage in radio production?

South Korea's opportunity cost of producing one unit of Radios is ____ unit of

chemical. Answer Selected Answer: Correct Answer: 1 30 / 30 1/1 Question 11 0 out of 10 points Incorrect Copy of The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 chemical. Answer Selected Answer: Correct Answer: 2 20 / 10 2/1 Question 12 10 out of 10 points 1/2 20/10 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities 1 30/30

Japan's opportunity cost of producing one unit of Radios is ____ unit of

Correct The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 Answer Selected Answer: South Korea Correct Answer: South Korea Question 13 10 out of 10 points Correct The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 Answer 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities

Who has the comparative advantage in radio production?

Who has the comparative advantage in chemical production?

Selected Answer: Japan Correct Answer: Japan Question 14 10 out of 10 points Correct The following are production possibilities tables for South Korea and Japan: Product Product A Radios Radios Chemicals Chemicals 0 chemical production? Answer Selected Answer: Japan Correct Answer: Japan Question 15 10 out of 10 points Correct The following are production possibilities tables for South Korea and Japan: Product Product South Korea's Production Possibilities Japan's Production Possibilities 10 0 4 A B 30 8 6 8 C 24 6 12 12 16 South B D E 18 4 Korea's C F 12 2 18 20 0 24 30 6 0 Production D Possibilities E F Japan's Production Possibilities

According to the theory of comparative advantage, who should specialize in

A A Radios Radios Chemicals Chemicals 0 10 0 4 B 30 8 6 C 24

B D 6 12 8 E 18

C F 12 4 12 2 18 16

D 6 0

F 0 30

24 20

In order for trade to be beneficial for both countries, the terms must be such that one unit of chemical is traded for greater than [a] of radio but less than [b] units of radio. Specified Answer for: a Specified Answer for: b Correct Answers for: a 10/20 Correct Answers for: b 30/30 Balance of Payments 21:27 Question 1 10 out of 10 points Correct Japan sells $40 million worth of cars to China. true (more than one answer is correct): Answer Selected Answers: This would be counted as credit of $40 million on Japan's balance of payments sheet. Which of the following are 1 1/2 1 1/2

This would be counted as debit of $40 million on China's balance of payments sheet.

This is a current account transaction.

Correct Answers: This would be counted as credit of $40 million on Japan's balance of payments sheet.

This would be counted as debit of $40 million on China's balance of payments sheet.

This is a current account transaction.

Question 2 10 out of 10 points Correct China sells $30 million worth of clothing to Japan. Which of the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as debit of $30 million on Japan's balance of payments sheet.

This would be counted as credit of $30 million on China's balance of payments sheet.

This is a current account transaction.

Correct Answers: This would be counted as debit of $30 million on Japan's balance of payments sheet.

This would be counted as credit of $30 million on China's balance of payments sheet.

This is a current account transaction.

Question 3 0 out of 10 points Incorrect Japan provides China with $20 million worth of banking services. the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as credit of $20 million on Japan's balance of payments sheet. Which of

This would be counted as debit of $20 million on China's balance of payments sheet.

This is a capital account transaction.

Correct Answers: This would be counted as credit of $20 million on Japan's balance of payments sheet.

This would be counted as debit of $20 million on China's balance of payments sheet.

This is a current account transaction.

Question 4 10 out of 10 points Correct Chinese tourists spend $5 million in Japan. Which of the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as credit of $5 million on Japan's balance of payments sheet.

This would be counted as debit of $5 million on China's balance of payments sheet.

This is a current account transaction.

Correct Answers: This would be counted as credit of $5 million on Japan's balance of payments sheet.

This would be counted as debit of $5 million on China's balance of payments sheet.

This is a current account transaction.

Question 5 10 out of 10 points Correct Japanese tourists spend $15 million in China. true (more than one answer is correct): Answer Selected Answers: This would be counted as debit of $15 million on Japan's balance of payments sheet. Which of the following are

This would be counted as credit of $15 million on China's balance of payments sheet.

This is a current account transaction.

Correct Answers: This would be counted as debit of $15 million on Japan's balance of payments sheet.

This would be counted as credit of $15 million on China's balance of payments sheet.

This is a current account transaction.

Question 6 0 out of 10 points Incorrect The Chinese government buys $10 million worth of computer software from Japan. Which of the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as credit of $10 million on Japan's balance of payments sheet.

This would be counted as debit of $10 million on China's balance of payments sheet.

This is a capital account transaction.

Correct Answers: This would be counted as credit of $10 million on Japan's balance of payments sheet.

This would be counted as debit of $10 million on China's balance of payments sheet.

This is a current account transaction.

Question 7 10 out of 10 points Correct Japanese citizens purchase $27 million worth of government and private bonds from China. is correct): Answer Selected Answers: This would be counted as debit of $27 million on Japan's balance of payments sheet. Which of the following are true (more than one answer

This would be counted as credit of $27 million on China's balance of payments sheet.

This is a capital account transaction.

Correct Answers: This would be counted as debit of $27 million on Japan's balance of payments sheet.

This would be counted as credit of $27 million on China's balance of payments sheet.

This is a capital account transaction.

Question 8 10 out of 10 points Correct Chinese citizens purchase $2 million worth of government and private bonds from Japan. correct): Answer Selected Answers: This would be counted as credit of $2 million on Japan's balance of payments sheet. Which of the following are true (more than one answer is

This would be counted as debit of $2 million on China's balance of payments sheet.

This is a capital account transaction.

Correct Answers: This would be counted as credit of $2 million on Japan's balance of payments sheet.

This would be counted as debit of $2 million on China's balance of payments sheet.

This is a capital account transaction.

Question 9 3.33333 out of 10 points Partial Credit Chinese citizens purchase $3 million worth of film and video media from Japan. Which of the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as credit of $3 million on Japan's balance of payments sheet.

This would be counted as debit of $3 million on China's balance of payments sheet.

This is a capital account transaction.

Correct Answers:

This would be counted as credit of $3 million on Japan's balance of payments sheet.

This would be counted as debit of $3 million on China's balance of payments sheet.

This is a current account transaction.

Question 10 0 out of 10 points Incorrect A Japanese company purchases a building and factory in China for $5 million. Which of the following are true (more than one answer is correct): Answer Selected Answers: This would be counted as debit of $5 million on Japan's balance of payments sheet.

This would be counted as credit of $5 million on China's balance of payments sheet.

This is a current account transaction.

This is a capital account transaction.

Correct Answers: This would be counted as debit of $5 million on Japan's balance of payments sheet.

This would be counted as credit of $5 million on China's balance of payments sheet.

This is a capital account transaction.

Question 11 10 out of 10 points Correct Assume that the following transactions were the only transactions for the year: Japan sells $40 million worth of cars to China China sells $30 million worth of clothing to Japan Japan provides China with $20 million worth of banking services Chinese government buys $10 million in software from Japan Japanese tourists spend $15 million in China Chinese tourists spend $5 million in Japan Japanese citizens purchase $27 million worth of government and private bonds from China Cinese citizens purchase $2 million worth of government and private bonds from Japan A Japanese company purchases a building and factory in China for $5 million

Chinese Citizens purchase $3 million worth of film and video and media from Japan Which of the following are true (more than one answer is correct): Answer Selected Answers: Japan has a trade surplus with China

China has a trade deficit with Japan

Correct Answers: Japan has a trade surplus with China

China has a trade deficit with Japan

Question 12 10 out of 10 points Correct Assume that the following transactions were the only transactions for the year: Japan sells $40 million worth of cars to China China sells $30 million worth of clothing to Japan Japan provides China with $20 million worth of banking services China's government buys $10 million in software from Japan. Japanese tourists spend $15 million in China Chinese tourists spend $5 million in Japan

Japanese citizens purchase $27 million worth of government and private bonds from China Cinese citizens purchase $2 million worth of government and private bonds from Japan A Japanese company purchases a building and factory in China for $5 million Chinese Citizens purchase $3 million worth of film and video and media from Japan Which of the following are true (more than one answer is correct): Answer Selected Answers: Japan has a balance-of-payment surplus with China

China has a balance-of-payment deficit with Japan

Correct Answers: Japan has a balance-of-payment surplus with China

China has a balance-of-payment deficit with Japan

Question 13 10 out of 10 points Correct Copy of Assume that the following transactions were the only transactions for the year:

Japan sells $40 million worth of cars to China China sells $30 million worth of clothing to Japan Japan provides China with $20 million worth of banking services Chinese government buys $10 million in software from Japan Japanese tourists spend $15 million in China Chinese tourists spend $5 million in Japan Japanese citizens purchase $27 million worth of government and private bonds from China Cinese citizens purchase $2 million worth of government and private bonds from Japan A Japanese company purchases a building and factory in China for $5 million Chinese Citizens purchase $3 million worth of film and video and media from Japan Which of the following are true (more than one answer is correct): Answer Selected Answers: The official reserves account for Japan is -$3 mill. The official reserves account for China is +$3 mill. Correct Answers: The official reserves account for Japan is -$3 mill. The official reserves account for China is +$3 mill. Required International Unit Review 21:27 Question 1 10 out of 10 points Correct

If a U.S. citizen could buy 25,000 pounds for $100,000, the rate of exchange for the pound would be: Answer Selected Answer: C Correct Answer: C Question 2 10 out of 10 points Correct The adoption of free trade in Japan would lead to: Answer Selected Answer: a greater area of domestic consumer surplus, but a smaller area of domestic producer surplus Correct Answer: a greater area of domestic consumer surplus, but a smaller area of domestic producer surplus Question 3 10 out of 10 points Correct U.S. residents demand foreign currencies to : exported to foreign countries foreign countries Answer Selected Answer: A) produce goods and services D) A) $40 B) $25 C) $4 D) $.25

B) pay for goods and services imported from

C) receive interest payments on domestic bonds

borrow money in the loanable funds market

B Correct Answer: B Question 4 0 out of 10 points Incorrect If a nation had a balance of payments surplus and the exchange rates floated freely, the foreign exchange rate for its currency would Answer Selected Answer: fall, its exports would increase, and its imports would decrease Correct Answer: rise, its exports would decrease, and its imports would increase Response Feedback: If more a foreign currency is being supplied than is being demanded (thus the surplus) then the exchange rate for that currency must not be at the equilibrium exchange rate. A greater quantity being supplied than The demanded must mean the price is higher than equilibrium price. currency will eventually fall to equilibrium. strengthen). Question 5 10 out of 10 points Correct Specialization and trade _______ the productivity of a nations resources and _______ total world output more than would be the case without it.

economy will, by the invisible hand, move to equilibrium, so the price of this A drop in price of this foreign currency means that the domestic currency will rise in price (it will A strong currency allows the citizens who hold it to buy more imports. The foreigner's weaker currency will not buy as much as before.

Answer Selected Answer: increase; increase Correct Answer: increase; increase Question 6 10 out of 10 points Correct NEPAL PRODUCTION POSSIBILITIES TABLE Production alternatives Product Yak fat Camel hides 40 A 0 32 B 4 24 C 8 16 D 12 8 E 16 0 F 20

KASHMIR PRODUCTION POSSIBILITIES TABLE Production alternatives Product Yak fat Camel hides Answer Selected Answer: between 2 and 4 camel hides for 1 unit of yak fat Correct Answer: between 2 and 4 camel hides for 1 unit of yak fat Question 7 0 out of 10 points Incorrect Higher interest rates in Australia compared to Japan cause a ___________ in the demand for Japanese yen and _________ in the demand for Australian 60 A 0 48 B 3 36 C 6 24 D 9 12 E 12 0 F 15

If Nepal and Kashmir engage in trade, the terms of trade will be:

Dollars. This will cause Japan's net exports to ________ . Answer Selected Answer: increase; decrease; decrease Correct Answer: decrease; increase; increase Question 8 10 out of 10 points Correct China can produce a radio in 3 hours and a bicycle in 2 hours. Russia can produce a radio in 4 hours and bicycle in 3 hours. ______ has the absolute advantage in radios and ______ has the comparative advantage in radios. Answer Selected Answer: China; Russia Correct Answer: China; Russia Question 9 10 out of 10 points Correct If the U.S. dollar depreciates relative to the South African Rand, then, all else equal: A) American goods will be more expensive for South Africans C) the Rand D) U.S net exports will likely B) South African goods will be less expensive for Americans will depreciate relative to the dollar. increase Answer

Selected Answer: D Correct Answer: D Question 10 10 out of 10 points Correct Specialization and trade makes it possible to obtain (exported, imported) goods _______ at a lower cost than if these goods were produced using help a nation pay for . domestic resources, and the earnings from _______ these lower-cost (exports, imports) _______ Answer Selected Answer: imported; exports; imports Correct Answer: imported; exports; imports Question 11 10 out of 10 points Correct Assuming exchange rates are flexible, which of the following should increase the dollar price of the Swedish krona? Answer Selected Answer: real interest rate increases greater in Sweden than in the United States Correct Answer: real interest rate increases greater in Sweden than in the United States Question 12 10 out of 10 points

Correct For the U.S., U.S. exports create a foreign (demand for, supply of) _______ dollars and generate a _______ Answer Selected Answer: demand for; supply of Correct Answer: demand for; supply of Question 13 10 out of 10 points Correct When the dollar price of foreign currency increases, there has been a _______ in value of the dollar. When the dollar price of foreign currency decreases, there has been a _______ Answer Selected Answer: depreciation; appreciation Correct Answer: depreciation; appreciation Question 14 0 out of 10 points Incorrect INDONESIA PRODUCTION POSSIBILITIES TABLE Production alternatives Product fruity drinks puppets 0 60 A 3 48 B 6 36 C 9 24 D 12 E 12 15 0 F in value of the dollar. foreign currencies.

. SINGAPORE PRODUCTION POSSIBILITIES TABLE Production alternatives Product fruity drinks puppets . Assume that prior to specialization and trade Indonesia and Singapore both choose production possibility C. Now if each specializes according to its comparative advantage, the resulting gains from specialization and trade will be: Answer Selected Answer: 14 fruit drinks and 48 puppets Correct Answer: 6 fruity drinks and 12 puppets Response Feedback: Singapore has the comp. adv in fruity drinks so it will make specialize by making all fruity drinks and no puppets; 20 fruity drinks. Indonesia has the comp. adv in puppets so it will make specialize by making all puppets and no fruity drinks; 60 puppets. Prior to trade Singapore and Indonesia were making 14 fruity drinks total, and 48 puppets total. Therefore, the gains will be 6 fruity drinks (20-14 = 6) and 12 puppets (60-48 = 12) Question 15 10 out of 10 points Correct If the equilibrium exchange rate changes so that the dollar price of Japanese yen increases: A) the dollar has appreciated in value D) Japanese will be able to buy fewer U.S. goods B) the dollar has depreciated in value C) U.S. citizens will be able to buy more Japanese goods 0 20 A 4 16 B 8 12 C 12 8 D 16 4 E 20 0 F

Answer Selected Answer: B Correct Answer: B Question 16 10 out of 10 points Correct The major government policies that interfere with free trade include (match the description to the term). Answer Question E. tariffs E. tariffs Limits on the quantities or total value of specific items that may be imported, referred to as _______ D. quotas D. quotas Licensing requirements, unreasonable standards, and red tape for a product, which are _______ A. non-tariff barriers A. non-tariff barriers Correct Match Selected Match excise taxes or duties on imported goods that are called _______ .

Government payments to domestic producers of export goods, known as _______ C. export subsidies C. export subsidies Total bans on a specified product or an entire country's products, called ____ B. Embargo B. Embargo Question 17 10 out of 10 points Correct In the market for Japanese yen, an increase in the (demand for, supply of) _______ _______ yen will decrease the dollar price of yen, while an increase in the yen will increases the dollar price of yen. If the dollar price of expensive to Americans.

the yen increases then Japanese goods imported into the United States will be (more, less) _______ Answer Selected Answer: supply of; demand for; more Correct Answer: supply of; demand for; more Question 18 10 out of 10 points Correct

If the exchange rate for one United States dollar changes from 1.4 Euros to 1.7 Euros, then there has been: A) an appreciation in the value of the Euro B) a depreciation in the value of the dollar of the Euro Answer Selected Answer: C Correct Answer: C Question 19 10 out of 10 points Correct What happens to a nation's imports or exports of a product when world prices rise relative to domestic prices? Answer Selected Answer: exports of the product increase Correct Answer: exports of the product increase Question 20 10 out of 10 points Correct If the dollar-yen exchange rate is $1 for 110 yen, then a Sony VCR priced at 27,500 yen would cost a U.S. consumer: $300 Answer Selected Answer: A) $200 B) $250 C) $275 D) C) a depreciation in the value D) an increase in the price of the Euro

B Correct Answer: B Question 21 10 out of 10 points Correct If the dollar price of a German mark (DM) decreases from $0.60 = 1DM to $0.50 = 1 DM, then it means that there has been a (appreciation, depreciation) _______ in the value of the dollar; but if the dollar price of a in the value of the dollar. German mark increases from $0.40 = 1 DM to $0.55 = 1 DM, then it means that there has been a _______ Answer Selected Answer: appreciation; depreciation Correct Answer: appreciation; depreciation Question 22 10 out of 10 points Correct If Governments intervene in trade by implementing trade restrictions or providing export subsidies, it is most likely because they are trying to: expand a nation s production possibilities multinational corporations Answer Selected Answer: C Correct Answer: A) B) improve the position of

C) protect domestic industries from foreign

competition D) increase revenue from tariff duties and excise taxes

C Question 23 10 out of 10 points Correct A decrease in the United States demand for Japanese goods will: A)

increase the demand for Japanese yen and increase the dollar price of yen B) increase the demand for Japanese yen but decrease the dollar price of yen C) decrease the demand for Japanese yen and decrease the dollar price of yen of yen. Answer Selected Answer: C Correct Answer: C D) decrease the demand for Japanese yen but increase the dollar price