1. According to the principle of comparative advantage, worldwide output and consumption levels will be highest when goods are produced in nations where which of the following is true?
2. A barrier to trade in the form of laws forbidding trade in certain goods is called
3. An increase in U.S. tariffs on foreign-produced steel would probably benefit all the following groups EXCEPT
4. The table below gives the number of tons of widgets and cogs than can be produced in Country X and Country Y by using the exact same amount of productive resources:
The theory of comparative advantage suggests that under these conditions, Country Y would find it advantageous to
5. What does a balance-of-trade surplus imply?
6. In Adam Smith's view of capitalism,
7. Trade between countries leads to
8. If Americans decide to buy less Japanese automobiles,
9. When does the law of comparative advantage indicate that mutually beneficial international trade can take place?
10. Does Cuba, a non-capitalist nation, produce capital?
11. Which of the following economic questions must all societies deal with?
12. What can an increase in U.S. interest rates be expected to do?
13. Which of the following would contribute to a U.S. balance-of-trade deficit?
14. With freely floating exchange rates, a decrease in the value of a nation's currency will
15. Barriers to trade