Which statement is true? d. Trade cannot take place unless each trading partner
ID: 1193524 • Letter: W
Question
Which statement is true?
d. Trade cannot take place unless each trading partner has an absolute advantage in the production of the good or service that it is trading.
Statement I: Japan is a society that is willing to sacrifice for the long run. Statement II: The huge trade deficit that we have been running with Japan is almost entirely the fault of the Japanese.
d. Both statements are false.
Which statement is true?
d. The U.S. is the world's leading debtor nation and not the world's leading creditor nation.
Statement I: A strong case could be made that much of the blame for our trade deficit with Japan can be traced to unfair Japanese trade practices. Statement II: There is virtually nothing the United States can do to lower its trade deficit.
d. Both statements are false.
Statement I: Our trade deficit with Japan could be cut by about nine tenths if the Japanese halted their protectionist trade policies. Statement II: If we could wipe our trade deficit with Japan and China, we would be running a trade surplus.
d. Both statements are false.
Which is the most accurate statement?
d. Our trade deficits with Japan and China account for almost our entire trade deficit.
a. Comparative advantage and absolute advantage are identical terms. b. A country can have a comparative advantage without having an absolute advantage. c. The U.S. has a comparative advantage and an absolute advantage with nearly all of its trading partners.d. Trade cannot take place unless each trading partner has an absolute advantage in the production of the good or service that it is trading.
Statement I: Japan is a society that is willing to sacrifice for the long run. Statement II: The huge trade deficit that we have been running with Japan is almost entirely the fault of the Japanese.
a. Statement I is true and statement II is false. b. Statement II is true and statement I is false. c. Both statements are true.d. Both statements are false.
Which statement is true?
a. The U.S. is both the world's leading creditor nation and the leading debtor nation. b. The U.S. is neither the world's leading creditor nation nor the world's leading debtor nation. c. The U.S. is the world's leading creditor nation and not the world's leading debtor nation.d. The U.S. is the world's leading debtor nation and not the world's leading creditor nation.
Statement I: A strong case could be made that much of the blame for our trade deficit with Japan can be traced to unfair Japanese trade practices. Statement II: There is virtually nothing the United States can do to lower its trade deficit.
a. Statement I is true and statement II is false. b. Statement II is true and statement I is false. c. Both statements are true.d. Both statements are false.
Statement I: Our trade deficit with Japan could be cut by about nine tenths if the Japanese halted their protectionist trade policies. Statement II: If we could wipe our trade deficit with Japan and China, we would be running a trade surplus.
a. Statement I is true and statement II is false. b. Statement II is true and statement I is false. c. Both statements are true.d. Both statements are false.
Which is the most accurate statement?
a. Our trade problems with Japan and China are very similar. b. Japanese markets have been at least somewhat closed to imports. c. If Japan and China traded fairly, our trade deficits with those two countries would disappear.d. Our trade deficits with Japan and China account for almost our entire trade deficit.
Explanation / Answer
(1) (b)
Trade is based on the idea of comparative advantage and a country can have comparative advantage in goods in which it has no absolute advantage.
(2) (a)
Statement I: True
Statement II: False. A trade deficit cannot be entirely blamed on any one trade partner.
(3) (a)
US is the largest debtor and largest creditor.
(4) (d)
(5) (b)
Statement I is wrong because, we cannot measure accurately the cost and benefits if a country halts its protectionist trade policies.
(6) (c)
Fair trade would not lead to a huge trade deficit.
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