1. For which of the following does Bolivia have the absolute advantage in production?

Question

- wheat and soybeans

2.A country can direct all of its resources to the production of either 5,000 computers or 20,000 books. Assuming that no economic growth will occur in the near future, and that the residents of the country want to consume a combination of 3,500 computers and 8,000 books, which of the following is correct?
-The country could only achieve this through trade.

3.Which term refers to a tax on imports?
- tariff

4. A country currently exports 1 million tons of lumber to the rest of the world. If the government were to impose an export subsidy on lumber, which of the following correctly explains the expected result?
- The subsidy will increase exports of lumber because it will effectively raise lumber prices for both domestic consumers and domestic producers.

5.Which of the following describes one purpose of APEC?
-to reduce tariffs among member countries

6.Which of the following correctly explains the relationship between international trade agreements and protectionist trade policies?
-International trade agreements usually mitigate protectionist trade policies by reducing barriers to trade.

7.Which of the following is addressed by the USMCA? Select the two correct answers.
-agricultural trade
-intellectual property rights

8.Which of the following correctly explains how the dollars-per-euro exchange rate will change in the near future if the exchange rate is expected to rise?
-The expectation of an appreciating euro increases the demand for euros and decreases the supply of euros on the foreign exchange market. The result is a higher exchange rate in the near future.

9.Which of the following measures are used to assess aspects of a population's health? Select the two correct answers.
-life expectancy
-infant mortality rate

10.Country A has a GDP of $60,000,000, and Country B has a per capita GDP of $2,000. If the populations of Countries A and B are 40,000 and 20,000, respectively, which country is most developed based on per capita GDP, and why?
-Country B is more developed because it produces $2,000 per person, while Country A only produces $1,500 per person.

11.Which of the following explains how foreign portfolio investment contributes to economic development?
-Domestic investors direct capital to foreign countries through the purchase of securities issued by foreign entities.

12.How can a difference in Gini coefficients for the United States and China be interpreted?
-The United States and China differ in how evenly income is distributed among individuals.

13.Which of the following trends have followed globalization? Select the two correct answers.
-technological advancement
- an increase in the value of knowledge and information

14. If the United States and Canada enter into a trade deal that allows Canada to trade oil to the U.S. and the U.S. to trade auto parts to Canada, who will benefit and who will be at a disadvantage from this deal?
-Consumers in both countries will benefit. Oil producers in Canada and auto part manufacturers in the U.S. will benefit. Oil producers in the U.S. and auto part manufacturers in Canada will be at a disadvantage.