McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) , Master of Business Administration (MBA) .
Chapters
| 51. |
A primary reason why nations conduct international trade is because: |
| A. | Some nations prefer to produce one thing while others produce another |
| B. | Resources are not equally distributed to all trading nations |
| C. | Trade enhances opportunities to accumulate profits |
| D. | Interest rates are not identical in all trading nations |
| Answer» B. Resources are not equally distributed to all trading nations | |
| 52. |
A main advantage of specialization results from: |
| A. | Economics of large scale production |
| B. | The specializing country behaving as a monopoly |
| C. | Smaller production runs resulting in lower unit costs. |
| D. | High wages paid to foreign workers |
| Answer» A. Economics of large scale production | |
| 53. |
International trade in goods and services is sometimes used as a substitute for all of the following except: |
| A. | International movements of capital. |
| B. | International movements of labor. |
| C. | International movements of technology |
| D. | Domestic production of different goods and services |
| Answer» D. Domestic production of different goods and services | |
| 54. |
If a nation has an open economy it means that the nation: |
| A. | Allows private ownership of capital. |
| B. | Has flexible exchange rates |
| C. | Has fixed exchange rates |
| D. | Conducts trade with other countries |
| Answer» D. Conducts trade with other countries | |
| 55. |
International trade forces domestic firms to become more competitive in terms of: |
| A. | The introduction of new products |
| B. | Product design and quality |
| C. | Product price |
| D. | All of the above |
| Answer» D. All of the above | |
| 56. |
The movement to free international trade is most likely to generate short-term unemployment in which industries: |
| A. | Industries in which there are neither imports nor exports |
| B. | Import-competing industries. |
| C. | Industries that sell to domestic and foreign buyers |
| D. | Industries that sell to only foreign buyers |
| Answer» B. Import-competing industries. | |
| 57. |
International trade is based on the idea that: |
| A. | Exports should exceed imports |
| B. | Imports should exceed exports |
| C. | Resources are more mobile internationally than are goods |
| D. | Resources are less mobile internationally than are goods |
| Answer» D. Resources are less mobile internationally than are goods | |
| 58. |
Arguments for free trade are sometimes disregarded by politicians because: |
| A. | Maximizing domestic efficiency is not considered important |
| B. | Maximizing consumer welfare may not be a chief priority |
| C. | There exist sound economic reasons for keeping one’s economy isolated from other economies. |
| D. | Economists tend to favor highly protected domestic markets |
| Answer» B. Maximizing consumer welfare may not be a chief priority | |
| 59. |
Increased foreign competition tend to |
| A. | Intensify inflationary pressure at home |
| B. | Induce falling output per worker-hour for domestic workers |
| C. | Place constraints on the wages of domestic workers |
| D. | Increase profits of domestic import-competing industrie |
| Answer» C. Place constraints on the wages of domestic workers | |
| 60. |
Free trade is based on the principle of: |
| A. | Comparative advantage |
| B. | Comparative scale |
| C. | Economies of advantage |
| D. | Production possibility advantage |
| Answer» B. Comparative scale | |
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