1. the general agreement on tariffs and trade is an international agreement a. to encourage world trade by lowering tariffs and other trade barriers b.between the US and japan that has never been ratified resulting in several trade wars with japan c.to encourage world trade by lending resources to developing countries d.that outlaws all tariffs but permits quotas 2. assume the US government wants to hold the value of the dollar at $1=10 chinese yuan, but it finds that the value of yuam is depreciating against the US dollar. what would be an appropriate policy to reverse this trend? a. buy US dollars b.sell US dollars c.increase the money supply in the US d.increase government spending within the US 7. flexible exchange rates are determined by a. the foces of supply and demand. b. the government of the importing country c.the government of the exporting country d.the IMF

1. the general agreement on tariffs and trade is an international agreement a. to encourage world trade by lowering tariffs and other trade barriers b.between the US and japan that has never been ratified resulting in several trade wars with japan c.to encourage world trade by lending resources to developing countries d.that outlaws all tariffs but permits quotas 2. assume the US government wants to hold the value of the dollar at $1=10 chinese yuan, but it finds that the value of yuam is depreciating against the US dollar. what would be an appropriate policy to reverse this trend? a. buy US dollars b.sell US dollars c.increase the money supply in the US d.increase government spending within the US 7. flexible exchange rates are determined by a. the foces of supply and demand. b. the government of the importing country c.the government of the exporting country d.the IMF

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A weaker U.S. dollar will likely increase demand from global buyers for U.S. wheat and beef. A. True B. False
A strong US dollar tends to A. Reduce exports to foreign buyers B. Reduce imports from foreign sellers
Other things the same, if the U.S. price level falls, then the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.
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In our pretend world there are two countries - Chile and Switzerland - that are engaged in trade. The firm Switzerland Chocolates Express sells Boxes of chocolate (a good) in Chile. Each Box of Chocolates sells for 6500 Chilean pesos in Chile. In Switzerland, each box of chocolates 11 Swiss Franc to produce. Assume that the firm has 1 million boxes of chocolate to sell. How much money (in Swiss Franc) would the firm make (or lose) on the sale at the following exchange rates: Rate 1: 550 Pesos per Swiss Franc Rate 2: 0.0015 Swiss Franc Per Chilean Peso
Tradavia exports its world-famous giant sausages to Gourmland. If the price of a sausage is 8 Tradavian dollars in the home currency and there are 6 Gourmlandian pounds to 1 dollar, what is the price of a sausage in Gourmland?
See the attached.
What is one advantage of a currency that is depreciating (weakening)? 2 answers A)Exports will increase and create jobsB)Imports will increaseC)Trade Surplus (Exports are greater than Imports)D)Trade Surplus (Exports are less than Imports)
1) When the U.S. dollar depreciates, expensive. a b с d e Foreign labor costs Domestic exports Foreign imports Shipping costs Domestic labor costs get more
What would happen if Mexico has a trade deficit with the US? The demand for U.S. dollar should increase and the U.S. dollar should appreciate against the Mexican peso. The demand for Mexican peso should increase and the U.S. dollar should depreciate against the Mexican peso. The supply for Mexican peso should increase and the Mexican peso should appreciate against the U.S. dollar.
18
QUESTION 1 The price of a good is $5.56 in the USA and £4.42 in Britain and the exchange rate is £0.98. If you purchase a good from the UK, then how many goods from the US do you forgo purchasing? (Round to the nearest hundredth.) QUESTION 2 The price of oil is $5.83 in the USA and £4.73 in Britain and the exchange rate is £0.85. You have an oil budget of $39 and want to buy as much oil as possible. What is the maximum amount of oil you can afford? (Round to the nearest hundredth.)