When a nation reduces the barriers to international trade:
A. the total value of all goods and serviced produced by the nation rises.
B. the total value of all goods and services produced by the nation falls.
C. each individual citizen becomes better off.
D. each individual citizen becomes worse off.
Answer: A
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All of the following are reasons countries may be unable to use discriminatory trade practices to enforce labor standards EXCEPT
A) in order to be effective a coalition of countries must join together to impose them. B) countries can never impose trade barriers on other sovereign nations. C) the WTO requires nations to treat other nations the same. D) a single country may be unsuccessful in convincing members of its trading block to participate in imposing the sanctions. E) retaliation or a full blown trade war might result.
All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed. B) there is a fixed time period. C) there is a fixed level of technology. D) there is a fixed demand for the products.
When economists refer to a production cost that has already been committed and cannot be recovered, they use the term
a. implicit cost. b. explicit cost. c. variable cost. d. sunk cost.
A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside) the production possibilities curve.
