International Economic

Satisfactory Essays
1:Mercantilists believed that a nation would benefit from achieving:

an even trade balance (exports equal to imports). a positive or favorable trade balance (exports larger than imports). as much self-sufficiency as possible (minimal exports and imports). a trade deficit, funded by loans from other nations.
[我的答案] a positive or favorable trade balance (exports larger than imports).

2:Adam Smith's theory was based on the labor theory of value, assuming that:

the value of labor depended on a worker's age labor was the only productive resource and the price of a good depended only on the amount of labor required to produce it. labor was more valuable than capital as an input labor was more valuable than land as an input
[我的答案] labor was the only productive resource and the price of a good depended only on the amount of labor required to produce it.

3:If each worker in Argentina can produce either 20 bushels of wheat or 1 car per day, and each worker in Brazil can produce either 30 bushels of wheat or 2 cars per day,

mutually beneficial trade cannot take place because Brazil has the absolute advantage in both products
Argentina and Brazil both can gain if Argentina exports cars and Brazil exports wheat.
Argentina and Brazil both can gain if Argentina exports wheat and Brazil exports cars. mutually beneficial trade cannot take place because neither country has a comparative advantage in either product
[我的答案] Argentina and Brazil both can gain if Argentina exports wheat and Brazil exports cars.

4:A nation that gains from trade will find its consumption point being located:

Outside its production possibilities curve
Inside its production possibilities curve
Along its production possibilities curve
None of the above
[我的答案] Outside its production possibilities curve

5:Table 2.1. Output Possibilities of the U.S. and the U.K.

Output per Worker per day
Country
Tons of Steel
Televisions
United States United

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