devry econ 312 week 7 quiz answer
(TCO 8) Specialization and trade between individuals or between nations lead to:
Higher product prices
Lower living standards
Higher total output
Question 2. Question :
(TCO 8) Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n)
voluntary export restriction.
Question 3. Question :
(TCO 9) Which of the following is not included in the current account of a nation’s balance of payments?
Its goods exports
Its goods imports
Its net investment income
Its purchases of real assets abroad
Question 4. Question :
(TCO 9) If the dollar price of the yen rises, then
the yen price of dollars also rises.
the dollar depreciates relative to the yen.
the yen depreciates relative to the dollar.
the dollar will buy fewer U.S. goods.
Question 5. Question :
(TCO 9) In recent years, the United States has had large
current account surpluses.
capital and financial account deficits.
Question 6. Question :
(TCO 9) Answer the next question(s) on the basis of the following table which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.
Quantity of Libras Demanded (billions)
Dollar Price of Libras
Quantity of Libras Supplied (billions)
The equilibrium dollar price of libras is
Student Answer: $5.
Question 7. Question :
(TCO 8) The primary gain from international trade is
increased employment in the domestic-export sector.
more goods than would be attainable through domestic production alone.
increased employment in the domestic-import sector.
Question 8. Question :
(TCO 8) Refer to the graphs below. Stanville has a comparative advantage in producing
both Product A and B.
neither Product A nor B.
Question 9. Question : devry econ 312 week 7 quiz
(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 : devry econ 312 week 7 quiz
(TCO 8) As a percentage of GDP, U.S. exports are
greater than U.S. imports.
about 20 percent.
considerably lower than in several other industrially advanced nations.
higher than in Canada but lower than Germany.
Question 11. Question :
(TCO 8 and 10) Explain some of problems with the argument that trade protection is needed to protect American jobs.
(TCO 9) What are the economic effects of a depreciation of the US dollar on US trade balances?
* Times are displayed in (GMT-07:00) Mountain Time (US & Canada)