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. If Americans decide to buy less Japanese automobiles,
3. A barrier to trade in the form of laws forbidding trade in certain goods is called
4. Which of the following would contribute to a U.S. balance-of-trade deficit?
5. Barriers to trade
6. 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
7. When does the law of comparative advantage indicate that mutually beneficial international trade can take place?
8. Which of the following economic questions must all societies deal with?
9. Does Cuba, a non-capitalist nation, produce capital?
10. With freely floating exchange rates, a decrease in the value of a nation's currency will
11. Trade between countries leads to
12. What does a balance-of-trade surplus imply?
13. In Adam Smith's view of capitalism,
14. What can an increase in U.S. interest rates be expected to do?
15. An increase in U.S. tariffs on foreign-produced steel would probably benefit all the following groups EXCEPT