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Posted: June 12th, 2023
2. Choose theBEST answer.Here are alternate outputs from one day’s labor input: USA: 12 bushels of wheat OR 3 yards of textiles. India: 3 bushels of wheat OR 12 yards of textiles. The opportunity cost of one bushel of wheat in India is:1 yard of textiles.12 yards of textiles.4 yards of textiles.3 yards of textiles.3. Choose theBEST answer.When the world price of some good is above the domestic price (before trade), then after trade, that nation will likely be:importing that item and exporting whatever it produces at an absolute advantage. exporting that item and importing whatever it produces at an absolute disadvantage. exporting that item and importing whatever it produces at a comparative disadvantage. importing that item and exporting whatever it produces at a comparative advantage.7. ChooseALL that apply.The WTO is an organization that:resolves criminal cases between nations. resolves trade disputes between nations. can tame the political influence that an industry may exert on trade laws8. ChooseALL that apply.Refer to the video on the US-South Korea free trade agreement. When Free Trade Agreements are negotiated,:consumers necessarily gain as firms lower the price of tariffed products. Some firms have greater access to export markets. Some firms that sell domestically produced products may be harmed.10. Choose theBEST answer.A stronger dollar will have the following effects:makes imported goods and services cheaper. makes American exports cheaper. increases demand on the U.S. economy. makes American exporters happy.11. ChooseALL that apply.A nation suffering from inflation would have a reason to welcome:a wave of foreign investment. the inflation-fighting effects of less expensive imports. currency depreciation.currency appreciation.12. ChooseALL that apply.A nation suffering from high unemployment would welcome:effects of less expensive exports currency depreciation A wave of foreign investment currency appreciation13. ChooseALL that apply.Some of the forces working against freer global trade are:industries that are at a comparative advantage. the support of environmental and labor groups. bi-lateral trade agreements. strategic trade policy by national governments.14. ChooseALL that apply.The global movement toward generally freer trade:threatens established livelihoods and ways of life. allows for sustained trade deficits by some nations. offers gains from trade to all trading nations. is supported by all sectors of each trading nation.
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