A. free exchange of money
B. exchange of services
C. exchange of goods and services
D. None of them
Related Mcqs:
- A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
A. Inflation
B. Hyper-inflation
C. Deflation
D. Disinflation - S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?
A. S – I = X = M
B. S + I = X + M
C. S = I – (X+M)
D. S-I = X/M - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation - What is called the trade of goods or services without the exchange of money ?
A. Free exchange
B. Liberal Exchange
C. Barter
D. Bilateral Trade - According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
A. similar endowments of natural resources
B. similar levels of technology
C. similar per-capita incomes
D. similar wage levels - International trade in goods and services is sometimes used as a substitute for all of the following except ?
A. International movements of capital
B. International movements of labor
C. International movements of technology
D. Domestic production of different goods and services - International trade in goods and services tends to ?
A. Increase all domestic costs and prices
B. Keep all domestic costs and prices at the same level
C. Lessen the amount of competition facing home manufacturers
D. Increase the amount of competition facing home manufacturers - How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?
A. Open door market
B. Open door country
C. Open sky market
D. Free economy - Trade between two countries can be useful if cost ratios of goods are ?
A. Equal
B. Different
C. Undetermined
D. Decreasing - With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
A. 20 calculators increase
B. 25 calculators decrease
C. 25 calculators increase
D. 30 calculators increase
