nation is said to have an absolute advantage when the nation can produce more of a certain product in one labor hour than can its trading partner the nation's currency exchange rate is higher than that of its trading partner the nation's level of imports exceeds that of its exports the nation can produce a product with less opportunity cost than its trading partner

nation is said to have an absolute advantage when the nation can produce more of a certain product in one labor hour than can its trading partner the nation's currency exchange rate is higher than that of its trading partner the nation's level of imports exceeds that of its exports the nation can produce a product with less opportunity cost than its trading partner

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Which of the following is not a use of the concept of terms of trade? Select one: a. Gains from trade may be analyzed b. Domestic inflation may be estimated c. The causes for price changes may be analyzed d. Current price trends may be analyzed e. Changes in prices may be forecasted
Which of the following is TRUE regarding trade and wages? Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not. Trade can increase wages by increasing the productivity of labor. Trade directly increases productivity, which in turn increases wages. Trade helps to equalize wages between high- and low-productivity countries.
Consider a two‑nation world consisting of the United States and Mexico, which both produce strawberries. Assume there are no trade barriers or international transportation costs. The tables represent the markets for strawberries in the United States and Mexico. Mexican prices have been converted to U.S. dollars. What is the equilibrium world price per pound? What is the equilibrium quantity of exports and imports? Which country will export strawberries?
Using the Heckscher-Ohlin trade model, we would expect that in a nation that is labor abundant that exports potatoes, an increase in the quantity of labor would... A) Worsen the terms of trade for that nation B) Improve the terms of trade for that nation C) Raise wages in that nation D) Both B and C
Which of the following describe technical barrier to trade? Select all that apply. Government controls imposed on the flow of capital into or out of the country ☐ Two prospective trading partners being very distant from one another O Trading partners struggling to made trade deals because of the inability to communicate seamlessly and effectively ☐ Imposition by a country of a numerical limit on how much sugar can be imported under a low tariff ☐ Agricultural subsidies provided by the U.S. government to corn farmers Two countries agreeing to eliminate all tariffs on goods traded between them
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The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?
Which organization meets regularly to establish rules and settle disputes related to international trade? The United Nations Commission on Trade Law The United Nations Conference on Trade and Development The World Trade Organization The Federal Reserve Board U.S. businesses are demanders of foreign currencies because they need them to produce goods and services exported to foreign countries pay for goods and services imported from foreign countries receive interest payments from foreign governments receive interest payments from foreign businesses.