can anyone answer and if possible explain why choose the answer. e.g. 1) D becau
ID: 1110857 • Letter: C
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can anyone answer and if possible explain why choose the answer.
e.g. 1) D because.........
14. If a country has a trade surplus of s60 billion, which of the following can A) The country's exports are $180 billion, and its imports are $120 billio B) The country's exports are $110 billion, and its imports are $190 billiom C) The country's exports are $120 billion, and its imports are $180 billion D) The country's exports are $160 billion, and its imports are 560 billion 15. If a country has a trade deficit of $30 billion, which of the following A) The country's exports are $150 billion, and its imports are $120 B) The country's exports are $110 billion, and its imports are si C) The country's exports are $120 billion, and its imports are $140 billion D) The country's exports are $140 billion, and its imports are $40 billion be true )1 $140 billion 16. Country A would have an absolute advantage compared to Country B in the production of corn if corn can be produced at lower cost in terms of other goods than it could be in Country h ) Country A uses fewer resources to produce corn than Country B does C) the demand for corn is higher in Country A than in Countr D) corn sells for a higher price in Country A than in Country B y B 17. China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario A) Japan should import both radios and textiles. B) China should export both radios and textiles. C) China should export textiles and import radios. D) Japan should export textiles and import radio 18. Which of the following is NOT a function of money? A) Medium of exchange B) Store of value C) Unit of account D) Standard of value 19. Inflation: A) Reduces the cost of living B) Reduces the standard of living C) Reduces the price of products D) Reduces the purchasing power of the Belizean dollarExplanation / Answer
14) A
Trade balance is the difference of total exports and total imports. When there is trade surplus. Exports are greater than imports. When trade surplus of 60 exports are greater than imports by 60, 180-120=60 billion.
15) B
Trade deficit means imports are greater than exports. Trade deficit of 30 means imports are greater than exports by 30, 140-110=30.
16) B
A country has absolute advantage of it can produce the good more efficiently than other country, i.e. with less resources.
17) C
A country has comparative advantage in a good if it has lower opportunity cost than other country country to produce that good. If China has comparative advantage in textiles it should specialise in textile and import other good Japan given Japan has comparative advantage in radio.
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