23. specialization in trade will be economically efficient if it is based upon:
ID: 1209837 • Letter: 2
Question
23. specialization in trade will be economically efficient if it is based upon:
a.comparative advantage
b.government regulations
c.absolute advantage
d.national security needs
25. a difference between quota and tariff is:
a. the government collects revenues from a tariff, which does not happen with a quota
b. a quota increases profits of domestic producers more than a tariff does
c.a tariff generates a higher price than a quota does
d.a tariff generates a greater reduction in exports
26. which of the following is not an argument against free trade?
a countering foreign subsidies argument.
b.infant-industry argument
c.comparative advantage argument
d.protecting domestic job argument
27. under the Bretton Woods agreement the officially determined value of a county's currency is refered to as its:
a.value to weight ratio
b.exchange rate
c.par value
d.GDP
28. if the foreign exchange rate is one dollar for 10 south african rand, then how many dollars are needsd to purchase an item that csts 400 rand?
a.10
b.40
c.4,000
d.400
29. restrictions on imports:
a. is the best way to increase exports
b.eventually reduce exports
c.protect US jobs
d.usually have no permanent effects on an economy
Explanation / Answer
23.) A.) comparative advantage. because Whenever countries have different opportunity costs in production they can benefit from specialization and trade.
25.) A).the government collects revenues from a tariff, which does not happen with a quota
Tariffs can be defined as duties or forms of taxes levied on goods for revenue and protective purposes. Tariffs are useful for a country because they earn revenue for the government and raise the country’s GDP.Quotas are the limitations imposed by the government on what can be traded, the quantity that can be traded.It does not bring any revenue to the government.
26.) c.) comparative advantage argument.
comparative advantage argument is an economic law that demonstrates the ways in which protectionism is unnecessary in free trade.
27.) C.) par value.
under bretton woods system, exchange rates were fi xed for all countries on the gold standard. The exchange rates (also called “par values” or “parities”) for different currencies were determined by the gold content of their monetary units.
28.) B.) $40.
$1 = R10 then,
R400 = $40.
29,) B.) eventually reduace exports.
as restrictions on imports becomes more severe, $ appreciates and foreign currency depreciates.this makes U.S. goods relatively more costlier and hence affects the export potential.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.