Chapter 28: International Trade

Chapter 29: International Finance

QUESTION 1

Suppose James can produce tea at lower opportunity cost than Peter. In this case, James has a _____________  in producing tea. (Hint: pp. 836-840  two words)

QUESTION 2

Suppose the average income in the U.S. rose this year. This would _________ the demand for foreign currencies. (Hint: pp. 874-882, one word)

QUESTION 3

When a country engages in free trade and imports, domestic consumers will ________ while domestic producer ________. (Hint: pp. 847-856, first blank: one word, second blank: one word)

QUESTION 4

As a result of imposing tariffs , economic welfare analysis have shown that consumers ________ while producers _________ (Hint: pp. 851-854, first blank: one word; second blank: one word)

QUESTION 5

Suppose the value of the euro becomes more expensive than Canadian dollars. Then, the supply of the euro in Canada _________ (Hint: pp. 875-877, one word)

QUESTION 6

Suppose the U.S. government imposes taxes on agricultural products imported from China. This is an example of ___________. (Hint: pp. 851-856,one word)

QUESTION 7

____________ represents the area below the market price and above the market supply curve. (Hint: pp. 847-856  two words)

QUESTION 8

Suppose the U.S. residents would like to travel more to Japan to enjoy exotic cultures and scenic beauty this year. This would _________ the demand for Japanese Yen.  (Hint: pp. 874-882, one word)

QUESTION 9

_______________ represents the record of international transactions in which a nation has engaged over a year. (Hint: pp. 868-872, three words)

QUESTION 10

In 1947, most of the world took a multilateral approach and agreed to end tariff wards by signing __________________. (Hint: pp. 851-856, seven words, no initials allowed)

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