Japan will trade electronic equipment for goods in other countries as long as 1. Japan’s balance of payments is in positive territory. 2. Other countries have absolute advantage in electronic equipment. 3. Japan has comparative advantage in electronic equipment. 4. Other countries have more desirable exchange rates. Japan’s balance of... O ther countries have... Japan has com parati.. O ther countries have... 0% 0% 0% 0%
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Japan will trade electronic equipment for goods in other countries as long as 1.Japan’s balance of payments is in positive territory. 2.Other countries.
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Japan will trade electronic equipment for goods in other countries as long as
1. Japan’s balance of payments is in positive territory.
2. Other countries have absolute advantage in electronic equipment.
3. Japan has comparative advantage in electronic equipment.
4. Other countries have more desirable exchange rates.
Japan
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Which group is MOST LIKELY to benefit if the US Dollar appreciates against the Yen?
1. Japanese business with contracts to buy US goods
2. United States banks holding Japanese currency
3. United States investors buying Japanese stock
4. Tourists traveling from Japan to the United States
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Which group benefits the most when the US Dollar depreciates?
1. Foreign governments that hold US Treasury bonds
2. Citizens from other countries traveling to the United States
3. Business in the US that must repay loans to banks in other countries
Countries X and Y both produce salt and sugar. They have the same opportunity costs for both goods. Based on their information, which is true concerning trade between these
countries?
1. There is no information concerning absolute advantage so a decision about trade cannot be reached.
2. Country X has comparative advantage in sugar and Country Y has comparative advantage in salt.
3. Since neither has comparative advantage, they will not benefit from trade with each other.
4. They should flip a coin to decide who should produce sugar and then trade to be better off.
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If the government pays a business a subsidy, what is MOST likely to happen in
that market?
1. The market will see an increase in supply of the good.
2. The market will see an increase in demand for the good.
3. There will be a decrease in demand for the good.
4. There will be a decrease in the quantity supplied.
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Which BEST describes exchange rates?
1. The price of one nation’s currency in terms of another
2. An interest rate charged to consumers who take out a loan
3. An increase in the price of a market basket over a given time period
4. The difference between the total number of exports minus the number of imports