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