[{"id":214137,"question":"If the international terms of trade settle at a level that is between each country's opportunity cost.","choices":[{"text":"There is no basis for gainful trade for either country","value":"A"},{"text":"Both countries gain from trade","value":"B"},{"text":"Only one country gains from trade","value":"C"},{"text":"One country gains and the other country loses from trade","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214136,"question":"The earliest statement of the principle of comparative advantage in associated with","choices":[{"text":"Adam Smith","value":"A"},{"text":"David Ricardo","value":"B"},{"text":"E . Heckscher","value":"C"},{"text":"Bertil Ohlin","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214135,"question":"A sudden shift from import tariffs to free trade may induce short term unemployment in.","choices":[{"text":"Import competing industries","value":"A"},{"text":"Industries that are only exporters","value":"B"},{"text":"Industries that sell domestically as well as export","value":"C"},{"text":"Industries that neither import nor export","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214134,"question":"International trade in goods and services tends to","choices":[{"text":"Increase all domestic costs and prices","value":"A"},{"text":"Keep all domestic costs and prices at the same level","value":"B"},{"text":"Lessen the amount of competition facing home manufactures.","value":"C"},{"text":"Increase the amount of competition facing home manufacturers","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214133,"question":"A feasible effect of international trade is that a","choices":[{"text":"Monopoly in the home market become an oligopoly in the world market","value":"A"},{"text":"Oligopoly in the home market becomes a monopoly in the world market","value":"B"},{"text":"Purely competitive firm in the home market becomes an oligopolistic","value":"C"},{"text":"Purely competitive firm in the home market becomes a monopolist","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214132,"question":"increase foreign competition tend to.","choices":[{"text":"Intensify inflationary pressure at home","value":"A"},{"text":"Induce falling output per worker hour for domestic workers","value":"B"},{"text":"Place constraints on the wages of domestic workers","value":"C"},{"text":"Increase profits of domestic import competing industries.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214131,"question":"International trade is based on the idea that","choices":[{"text":"Exports should exceed imports","value":"A"},{"text":"Imports should exceed exports","value":"B"},{"text":"Resources are more mobile internationally than are goods","value":"C"},{"text":"Resources are less mobile internationally than are goods","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214130,"question":"The movement to free international trade is most likely to generate short term unemployment in which industries'.","choices":[{"text":"Industries in which there are neither imports nor exports","value":"A"},{"text":"Import competing industries.","value":"B"},{"text":"Industries that sell to domestic and foreign buyers","value":"C"},{"text":"Industries that sell to only foreign buyers","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214129,"question":"International trade forces domestic firms to become more completive in terms of.","choices":[{"text":"The introduction of new products","value":"A"},{"text":"Product design and quality","value":"B"},{"text":"Product price","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214128,"question":"If a nation has an open economy it means that the nation.","choices":[{"text":"Allows private ownership of capital","value":"A"},{"text":"Has flexible exchange rates","value":"B"},{"text":"Has fixed exchange rates","value":"C"},{"text":"Conducts trade with other countries","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214127,"question":"International trade in good sand services is sometimes used as a substitute for all of the following except.","choices":[{"text":"Internationals movement of capital","value":"A"},{"text":"International movement of labor","value":"B"},{"text":"International movements of technology","value":"C"},{"text":"Domestic production of different goods and services.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214126,"question":"A main advantage of specialization results from","choices":[{"text":"Economics of large scale production","value":"A"},{"text":"The specializing country behaving as a monoploidy.","value":"B"},{"text":"smaller production runs resulting in lower unit costs","value":"C"},{"text":"High wages paid to foreign workers","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214125,"question":"A primary reason why nations conduct international trade is because.","choices":[{"text":"some nations prefer to produce one thing while others produce another.","value":"A"},{"text":"Resources are not equally distributed to all trading nations","value":"B"},{"text":"Trade enhances opportunities to accumulate profits","value":"C"},{"text":"Interest rates are not identical in all trading nations","value":"D"},{"value":"E"}],"correctAnswer":2}]