DEVRY ECO312 WEEK 7 WEEKLY ASSIGNMENT

(TCO 8) Countries engaged in international trade specialize
in production based on
relative
levels of GDP.
comparative advantage.
relative
exchange rates.
relative
inflation rates.

Question 2. Question
:

(TCO 8) The World Trade Organization
is
also known as the International Monetary Fund (IMF).
is
also known as NAFTA.
was established to resolve
disputes arising under world trade rules.
enhances
world trade by providing interest rate subsidies to foreign borrowers who buy
exports on credit.

Question 3. Question
:

(TCO 9) The current account in a nation’s balance of
payments includes
its
goods exports and imports, and its services exports and imports.
foreign
purchases of domestic assets.
purchases
of foreign assets.
All
of these

Question 4. Question
:

(TCO 9) If the exchange rate between the U.S. dollar and the
Japanese yen is $1 = 200 yen, then the dollar price of the yen is
Student Answer: CORRECT $.005.
$.05.
$.50.
$5.

Question 5. Question
:

(TCO 9) In recent years, the United States has had large
current
account surpluses.
capital and financial account
deficits.
balance-of-trade deficits.
balance-of-payments
surpluses.

Question 6. Question
:

(TCO 9) When the U.S. dollar decreases in value relative to
foreign currencies the:
Demand
for U.S. exports will decrease
Supply
of U.S. exports will decrease
Demand for U.S. exports will
increase
Supply
of U.S. exports will remain constant

Question 7. Question
:

(TCO 8) If a nation has a comparative advantage in the
production of X, this means the nation
cannot
benefit by producing and trading this product.
must give up less of other goods
than other nations in producing a unit of X.
has
a production possibilities curve identical to those of other nations.
is
not subject to increasing opportunity costs.

Question 8. Question
:

(TCO 8) Refer to the graphs below. These production-possibilities curves

Graph Description

demonstrate
that there can be gains from specialization and trade between the two nations.
reflect
the law-of-increasing-opportunity costs.
reflect
the law-of-diminishing-marginal utility.
imply
that specialization will be incomplete.

Question 9. Question
:

(TCO 9) The Group of Eight (G8) Nations which periodically
have jointly intervened to influence the value of the dollar include
Canada,
U.S., France, Britain, Russia, Mexico, Germany, and Brazil.
Canada, U.S., France, Japan,
Italy, Germany, Russia, and Great Britain.
Canada,
U.S., Mexico, Brazil, Argentina, Peru, Uruguay, and Chile.
Italy,
France, Britain, Germany, Netherlands, Norway, Russia, and Sweden.

Question 10. Question
:

(TCO 8) In recent years the United States has
exported
more services abroad than it has imported.
had
a small goods trade surplus with Japan.
had
a large goods trade surplus with the rest of the world.
maintained
an overall trade surplus (goods and services combined) with the rest of the
world.

Question 11. Question
:

(TCO 8 and 10) Evaluate the statement: “Restricting imports
from other nations will save U.S. jobs.” Include both advantages and
disadvantages in you argument.

Question 12. Question
:

(TCO 9) How would a substantial appreciation in the European
euro in the foreign exchange market affect the quantity of imports of European
products by the U.S.? How would such an
appreciation of the European euro affect travel by Americans to Europe?