Question

14.           Open economies are subject to greater firm turnover because open economies

a.             trade less than closed economies.

b.             are more likely to be associated with tariffs than closed economies.

c.             are associated with increased competition as compared to closed economies.

d.             draw a less skilled labor force than closed economies.

15.           As an economy opens up to international trade, domestic prices

a.             increase.

b.             decrease.

c.             become stable over time.

d.             align more with international prices.

16.           The mercantilists would have objected to

a.             export promotion policies initiated by the government.

b.             the use of tariffs or quotas to restrict imports.

c.             trade policies designed to accumulate gold and other precious metals.

d.             international trade based on open markets.

Answer 1

Answer:-14) Option (C) " are associated with increased competition as compared to closed economics " is the correct answer.

Open economies are subject to greater firm turnover because open economies are associated with increased competition as compared to closed economics.

Answer:-15) Option (D) " align more with international prices " is the correct answer.

As an economy opens up to international trade, domestic prices become more aligned with international prices.

Answer:-16) Option (D) " international trade based on open market " is the correct answer.

The mercantilists would have objected to interest trade based on open market.