1) according to the product-life-cycle theory, the first stage of a product’s trade cycle is
when it is introduced to the home market.
a.true
b.false
2) if canada experiences constant opportunity costs, its supply schedule of steel will be:
a.downward-sloping
b.upward-sloping
c.horizontal
d.vertical
3) international reserves allow a country to finance disequilibria in its
balance-of-payments position.
a.true
b.false
4) given an upward-sloping supply schedule of pounds and a downward-sloping
demand schedule for pounds, an increase in the demand schedule causes an
appreciation of the dollar against the pound.
a.true
b.false
5) a “dirty float” occurs when a nation used central bank intervention in the foreign
exchange market to promote a depreciation of its currency’s exchange value, thus
gaining a competitive advantage compared to its trading partners.
a.true
b.false
6) in the united states, which group was most likely to be hurt by the north american
free trade agreement?
a.unskilled labor
b.skilled labor
c.owners of capital equipment
d.owners of financial capital
7) the export-import bank provides export-credit subsidies to u.s. producers of
agricultural goods.
a.true
b.false
8) studies have shown that there is an inverse relationship between
a.local competition and regional competition
b.regional competition and global competition
c.level of trade barriers and economic growth
d.level of education and communications infrastructure
9) in a free market, the equilibrium exchange rate occurs at the point where the quantity
demanded of a foreign currency equals the quantity of that currency supplied.
a.true
b.false
10) major beneficiaries of export-credit subsidies, granted by the export-import bank,
have included u.s. producers of aircraft, telecommunications, and power-generating
equipment.
a.true
b.false