Arguments for free trade are sometimes disregarded by politicians because ?

A. Maximizing domestic efficiency is not considered imports
B. Maximizing consumer welfare may not be a chief priority
C. There exist sound economic reasons for keeping one’s economy isolated from other economies
D. Economists tend to favor high protected domestic markets

The largest amount of trade with the United States in recent years has been conducted by ?

A. Canada
B. Germany
C. Mexico
D. United kingdom

For the United states, exports plus imports are about _____ of its gross national product?

A. 5 percent
B. 10 percent
C. 25 percent
D. 55 percent

Free traders maintain that an open economy is advantageous is that it provides all of the following except ?

A. Increased competition for world producers
B. A wider selection of products for consumers
C. The utilization of the most efficient production methods
D. Relatively high wages levels for all domestic workers

A main advantage of specialization results from ?

A. Economies of large-scale production
B. The specializing country behaving as a monopoly
C. Smaller production runs resulting in lower unit costs
D. High wages paid to foreign workers

If a nation has an open economy it means that the nation ?

A. Allows private ownership of capital
B. Has flexible exchange rates
C. Has fixed exchange rates
D. Conducts trade with other countries

The movement to free international trade is most likely to generate short-term unemployment in which industries ?

A. Industries in which there are neither imports nor exports
B. Imports competing industries
C. Industries that sell to domestic and foreign buyers
D. Industries that sell to only foreign buyers

LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?

A. The upward trend in commodity prices the stability of primary products real prices
B. The upward trend in commodity prices, the volatility of primary products real prices
C. The downward trend in commodity prices the stability of primary products real prices
D. The downward trend in commodity prices the volatility of primary products real prices

Import substitution is the replacement of ____ by domestic production _____ protection of ________?

A. Exports, subsidies
B. Exports, patents
C. Imports, high tariffs or import quotas
D. Imports, subsidies

If a country has a burden of debt it cannot sustain it can ?

A. Reschedule debt
B. Get a loan from an international organization
C. Default on the loan
D. Any of the above