Question

1. The text suggests that if economists had a mantra, it would be:

a. do unto others before they do unto you.

b. justice is the measure of all things.

c. when one person benefits, another is hurt.

d. trade is good.

2. World trade declined in the 1930s. Which of the following is the best explanation of that decline?

a. World income shrank and trade restrictions increased.

b. World income shrank but there were few changes in trade restrictions.

c. Trade restrictions increased but there was little change in world income.

d. Income of most nations increased allowing them to become more self-sufficient.

3. As a percentage of total imports, how have U.S. imports from China and India changed in the past 15 years?

a. They have remained roughly the same.

b. They have risen.

c. They have fallen.

d. They rose initially, then dropped back to the original level.

4. As a country develops economically, what changes usually take place in the goods it exports?

a. There is little change because comparative advantage does not change.

b. Raw materials and agricultural products decline in importance, replaced by services and manufactured goods.

c. Services and manufactured goods decline in importance, replaced by raw materials and agricultural products.

d. Exports go from being diversified to being specialized in whatever the country finds its comparative advantage.

5. Technological changes in telecommunications have:

a. reduced the importance of services in the world economy.

b. allowed increased foreign trade in many services.

c. reduced the need for foreign trade in many services.

d. profoundly affected trade in manufactured goods with little effect on trade in services.

Answer 1

1) .The text suggests that if economists had a mantra, it would be trade is good .

2). World trade declined in the 1930s. Which of the following is the best explanation of that decline world income shrank and trade restrictions increased .

3). As a percentage of total imports, how have U.S. imports from China and India changed in the past 15 years they have risen .

4). As a country develops economically, what changes usually take place in the goods it exports raw materials and agricultural products decline in importance, replaced by services and manufactured goods .

5).Technological changes in telecommunications have allowed increased foreign trade in many services .