Test #13, Chapters 16 & 17

Answer the questions below and then click "submit" to send your answers.

  1. The appreciation of one’s currency encourages exports.

    2. Your answer:
    True False

  2. To purchase goods from France, you must supply dollars and demand euros.

    3. Your answer:
    True False

  3. Arbitrage keeps markets from reaching equilibrium.

    4. Your answer:
    True False

  4. When a currency is devalued, exporters benefit.

    5. Your answer:
    True False

  5. Currency appreciation benefits importers.

    6. Your answer:
    True False

  6. Nations would gain from trade if a(n) ___ exists

    7. Your answer:
    comparative advantage
    terms of trade
    Exchange rate
    Absolute advantage
    specialization

  7. A notion should specialize in the production of the good for which it has a(n)

    8. Your answer:
    Absolute advantage
    Exchange rate
    specialization
    terms of trade
    comparative advantage

  8. The largest volume of trade in the world occurs between the United States and

    9. Your answer:
    Britain
    Russia
    Japan
    Mexico
    Canada

  9. Which of the following is not a trade-restricting practice?

    10. Your answer:
    a voluntary limit on exports
    tariff
    higher safety standards for imports than for the same good sold domestically.
    quota
    subsidy

  10. A tariff is a

    11. Your answer:
    limit on the quantity of imports
    tax on exports
    subsidy on imports
    tax on imports
    limit on the quantity of exports

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