A. Some nations prefer to produce one thing while others produce another
B. Resources are not equally distributed to all trading nations
C. Trade enhances opportunities to accumulate profits
D. interest rates are not identical in all trading nations
Related Mcqs:
- To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?
A. international commodity agreements program
B. multilateral contract program
C. generalized system of preferences program
D. export-led growth program - 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 - The organization that currently establishes rules of conduct for firms engaging in international trade is the ?
A. World Bank
B. International Trade Commission
C. Department of justice
D. World Trade Organization - Given free trade, small nations tend to benefit the most from trade since they ?
A. Are more productive than their large trading partners
B. Are less productive than their large trading partners
C. Have demand preferences and income levels lower than their large trading partners
D. Realize terms of trade lying near the MRTs of their large trading partners - Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
A. Kennedy Round of 1964-1967
B. Tokyo Round of 1973-1979
C. Uruguay Round of 1986-1993
D. Doha Round of 2003-2007 - Which of the following is not a reason why the aggregate demand curve slopes downward ?
A. The exchange-rate effect
B. The wealth effect
C. The classical dichotomy/monetary neutrality effect
D. The interest-rate effect - Which of the following is not a reason why some workers are paid above the equilibrium wage ?
A. minimum-wage laws
B. efficiency wages
C. unions
D. beauty - During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports - Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?
A. his desire to open a bank account in Japan
B. his desire to purchase an automobile produced domestically
C. his desire to travel to Europe
D. his desire to purchase Treasury bills issued by the British government - The main reason why land reform increase agricultural output is that is ?
A. encourages mechanization
B. allows the farmers to set the prices for their agricultural products
C. enables farmers to escape the problem of diminishing return
D. makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers
