Free traders maintain that an open economy is advantageous in that it provides all of the following except: a. A wider selection of products for consumers b. Increased competition for world producers c. The utilization of the most efficient production methods d. Relatively high wage levels for all domestic workers
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- © Macmillan Learning Production, Economic Growth, and Trade. - End of Chapter Problem Ice cubes are an enjoyable product that many take for granted since they are easily produced in a freezer. But prior to the invention of refrigeration in the late 19th century, obtaining ice in warm climates required it to be imported from cold environments, making it an expensive luxury item. The new technology of refrigeration increased allocative efficiency neither production nor allocative efficiency production efficiency both production and allocative efficiency in the economy.[item no.7] (Multiple Choice) Why does the United Nations discourage the usage of the global divide—first, second and third world countries? a. It is an imaginary concept that can be negated.b. It delineates the countries as to borders.c. It discriminates countries to be immediately classified as rich-poor divide.QUESTION 7 (Trade & Exchange rates) a. Rich nations have nothing to gain from trading with poorer nations? Do you agree with this statement? State why or why not using an appropriate explanation and/or diagram if necessary. b. The World Trade Organization's (WTO) policy of trade liberalization is in the best economic interest of small developing countries. Do you agree with this statement? State why or why not using an appropriate explanation and/or diagram if necessary. c. If the exchange rate of Trinidad and Tobago depreciates what would be the most likely impact on exports, imports and the trade balance of the country.
- Question 10 Which statement is supported by the information in the table? Export and Import Table Canada United States Top Export Partners n Export Partner D United States United Kingdom Canada Mexico China Japan Percent of Exports 73.70% 4.20% 19.00% 13.30% 7.00% 4.50% Top Import Partners Import Partner United States China Mexico China Canada Mexico Japan Germany B The United States exports more goods to China than to Canada. Percent of Imports 49.50% Trade with China disrupts trade between the United States and Canada. 10.80% A Canada and the United States are each the chief exporting nation to the other. 5.50% 18.40% 14.20% 11.70% 5.80% 4.40% Canada imports more goods from the United States than it exports to the United States.3 Define/identify eses with double Countings Edward lives in Canada. He owns an apparel company. Edward sells his products throughout Canada and would like to expand internationally. Edward reads up on NAFTA and finds strong support for choosing either the United States or Mexico to begin exporting products. Edward likely noticed which of the following o advantages of the free trade agreement?1)Consider a nation in which the volume of goods and services is growing by 5 percent per year. a. If a country’s economic size is growing faster than the rest of the world, then the share of the world’s goods and services that are produced in this country will fall. other countries will also have similar rates of growth. this country will gain influence in the international sector. the balance of trade will worsen. b. If a country’s living standards are increasing at 5 percent, this implies that prices are decreasing at a rate of 5 percent below the population growth. output is increasing at a rate of 5 percent above the population growth. output is increasing at a rate of 5 percent below the population growth. prices are increasing at a rate of 5 percent above the population growth.
- Economic Scenario: Country A has one of the highest real GDP while Country B has one of thehighest real GDP per capita in the world respectively. a.what are the (3) comparative differences between real GDP and real GDP per capita. b.What does this tell us, about the well-being of the residents of Country A and B?35. What are some benefits of international free trade? (Easy Question) Multiple Choice . . The U.S. consumer has more purchasing power with their dollars when they visit a store like WalMart or shop online with Amazon, since they get many of their goods from international sources. Lower prices, more consumer choice, more global output and increased wealth. Since the 1980's until today the increase in free trade has helped to lower global poverty. All of these reasons are benefits of international trade.Q.1.10 Openness of an economy is: (a) the extent to which a country is involved in international trade and finance.(b) the degree to which a country generates its economic growth.(c) the degree to which a country generates its income.(d) the extent to which a country is involved in tourism.
- 5. Which of the following statements is (are) correct? (x) The openness ratio is measured by a country's exports minus imports as a percent of GDP. (y) In recent decades, the United States has become tied to other nations through a rise in capital flows. (z) Economists have generally found that economic growth rates have a close relation to education, openness to trade, and communications infrastructure. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only 7. Which of the following statements is (are) correct? (x) The "Made in America" emblem printed on televisions sold by Element Electronics is intended to inform consumers of its commitment to create quality manufacturing jobs in the United States. (y) Workers sometimes face demands for wage reductions from their employers, which threaten to export jobs abroad if wage reductions are not accepted. (z) Critics maintain that U.S. trade policies have mainly benefitted large corporations rather than…5. The following is a list of other factors that can make trade beneficial (i) Trade is an engine of growth. (ii) Non-economic factors. (iii) Increased competition. (iv) Differences in demand. (v) Decreasing costs. Into which one of these five categories do the following examples fit? (a) By specialising in certain export, the country may become increasingly skilled in their production. (b) Free trade between countries may encourage closer political co-operation (c) When the rest-of-the-world economy expands, this will increase the demand for a country's exports and also raise its export prices relative to import prices. (d) Consumer tastes for products differ between different countries. (e) Allowing imports freely into a country may stimulate domestic producers to be more efficient.5. Economic growth and public policy Fill in blank Suppose Hondamaha, a motorcycle manufacturing firm headquartered in Japan, builds a production plant in Arizona. This is an example of foreign __________ (portfolio, direct) investment in the United States. Answer box questions in picture please