Week 10 Quiz

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  • Question 1

    2 out of 2 points

    The idea behind comparative advantage reflects the possibility that one party:
    Selected Answer:

    may be able to produce something at a lower opportunity cost than another party.
    Answers:

    may be able to produce everything relatively more efficiently than another party.

    may be able to produce something at a lower dollar cost than another party.

    with an absolute advantage in producing two different may export goods both of those goods to the other party.

    may be able to produce something at a lower opportunity cost than another party.

  • Question 2

    2 out of 2 points

    Which term is used to describe what those in one country buy from those in other countries?
    Selected Answer:

    imports
    Answers:

    exports

    imports

    trade

    surplus

  • Question 3

    2 out of 2 points

    Which term describes circumstances where a country’s exports exceed its imports?
    Selected Answer:

    trade surplus
    Answers:

    trade deficit

    trade imbalance

    trade surplus

    trade balance

  • Question 4

    2 out of 2 points

    If exports ______________, then the economy is said to have a trade surplus.
    Selected Answer:

    exceed imports
    Answers:

    equal imports

    exceed imports

    precede imports

    follow imports

  • Question 5

    2 out of 2 points

    The idea behind comparative advantage reflects the possibility that one party:
    Selected Answer:

    may be able to produce something at a lower opportunity cost than another party.
    Answers:

    may be able to produce everything relatively more efficiently than another party.

    may be able to produce something at a lower opportunity cost than another party.

    may be able to produce something at a lower dollar cost than another party.

    with an absolute advantage in producing two different may export goods both of those goods to the other party.

  • Question 6

    2 out of 2 points

    If exports and imports:
    Selected Answer:

    are equal, then trade is balanced.
    Answers:

    are imbalanced, then a trade surplus exists.

    are imbalanced, then a trade deficit exits.

    are equal, then trade is balanced.

    are equal, then the economy is unhealthy.

  • Question 7

    2 out of 2 points

    The reasons that nations trade include the fact that:
    Selected Answer:

    no one country produces all of what citizens within the country want.
    Answers:

    no one country produces all of what citizens within the country want.

    the wants of their citizens exceed their productive capacity.

    different countries have different levels of greed.

    labor costs are too high in some countries to efficiently produce goods.

  • Question 8

    2 out of 2 points

    What is the name for goods and services produced in one country that are then sold in other countries?
    Selected Answer:

    exports
    Answers:

    exports

    tradeable items

    surplus items

    economic stimulants

  • Question 9

    2 out of 2 points

    A series of macroeconomic events has led an economy into a deep recession. Which of the following factors is most likely to have initiated this series of events?
    Selected Answer:

    unbalanced trade
    Answers:

    level of trade

    unbalanced trade

    deficit level of trade

    merchandise trade imbalance

  • Question 10

    2 out of 2 points

    _____________________ identifies the area where a producer’s absolute advantage is relatively greatest, or where the producer’s absolute disadvantage in productivity is relatively least.
    Selected Answer:

    Comparative advantage
    Answers:

    Relative advantage

    Opportunity cost

    Productivity advantage

    Comparative advantage

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