Q6. Mike Harris in a research paper on free trade between high-wage countries and low-wage countries concluded free trade between low-wage countries such as China, India, and Pakistan and high-wage countries such as the U.S., Japan, and Germany would depress wages in high-wage countries. His conclusion was based on the following: Point 1: U.S., Japanese, and German workers are unable to compete with cheap foreign labor from countries such as China, India, and Pakistan. Point 2: U.S., Japanese, and German workers are less productive than workers in China, Pakistan, and India. Point 3: Free-trade between high-wage countries and low-wage countries will reduce the consumption possibilities of people in high-wage countries. Are Points 1, 2, and 3, as raised by Harris correct? Point 1
Point 2 Point 3
A) Incorrect Incorrect Incorrect B) Incorrect Correct Correct C) Correct Correct Incorrect
Q7. The law of comparative advantage explains why a nation will benefit from trade when it: A) exports more than it imports. B) exports goods for which it is a low-cost producer, while importing those for which it is a high-cost producer. C) exports goods for which it is a high-cost producer, while importing those for which it is a low-cost producer.
Q8. According to the law of comparative advantage:
A) if a foreign government subsidizes the textile industry, the domestic government should impose a tariff. B) Mexico is considered to have a comparative advantage in plastics if Mexico can produce plastic using fewer resources than the U.S. C) a nation will benefit from trade when it imports goods for which it is the high cost producer and exports goods for which it is the low-cost producer.
Q9. A country has a comparative advantage over another when: A) a nation can produce more output with a given amount of input than another nation. B) it can produce a product with the fewest resources. C) a nation has the ability to produce a good with a lower opportunity cost than another nation.
Q10. Which type of advantage determines the pattern of trade in the world? A) Absolute advantage. B) Advantages due to tariffs and quotas. C) Comparative advantage.
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发表于 2009-1-13 10:57
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