"[MULTIPLE-SSELECT] Trade is a: { zero sum game =positive sum game negative sum game all of the above }" "[MULTIPLE-SSELECT] A country should export a product that it can produce at a lower cost than other nations can. This is the principle of: { =absolute advantage comparative advantage relative advantage factor endowment }" "[MULTIPLE-SSELECT] According to the principle of absolute advantage, a country should [ ] a commodity that can be produced at a lower cost than can other nations? { =export import import both export and import neither export nor import }" "[MULTIPLE-SSELECT] According to the principle of absolute advantage, a country should import a commodity that can be only produced at a [ ] cost than can other nations. { =higher lower same cost is irrelevant }" "[MULTIPLE-SSELECT] The principle of relative advantage states that a country should produce a product with the [ ] comparative advantage. { least =greatest equal somewhat higher }" "[MULTIPLE-SSELECT] According to the principle of relative advantage, a country should export a product for which it has the least: { absolute advantage absolute disadvantage comparative advantage =comparative disadvantage }" "[MULTIPLE-SSELECT] According to the principle of comparative advantage, a country with the absolute disadvantages in all products should specialize in the product that it has: { absolute advantage more comparative advantage less comparative advantage =least comparative disadvantage greatest comparative disadvantage }" "[MULTIPLE-SSELECT] On any certain day, the United States can produce 20 items of product A and 30 items of product B, while Australia produces 10 of A and 20 of B. Which product should Australia specialize in? { A =B none of the above A and B equally }" "[MULTIPLE-SSELECT] A country should export a product that it can produce at a lower cost than other nations can. This is the principle of: { =absolute advantage comparative advantage relative advantage factor endowment }" "[MULTIPLE-SSELECT] Comparative advantage is: { static semi-static =dynamic semi-dynamic }" "[MULTIPLE-SSELECT] The theory of factor endowment considers this factor of production. { labor land capital =all of them are considered }" "[MULTIPLE-SSELECT] This production factor is not China's comparative advantage. { labor land =capital technology }" "[MULTIPLE-SSELECT] The Resource Curse Hypothesis states that, when compared to their resource-scarce counterparts, resource-abundant economies: { =grow less rapidly grow more rapidly grow at the same rate }" "[MULTIPLE-SSELECT] The Human Development Index does not include this type of achievement in its measure of a country's well-being. { longevity educational attainment =income equality living standards }" "[MULTIPLE-SSELECT] The evidence that the United States exports labor-intensive goods and imports capital-intensive goods is known as: { principle of absolute advantage principle of relative advantage =Leontief Paradox factor endowment }" "[MULTIPLE-SSELECT] Trade theories assume that trade is: { unilateral =bilateral multilateral }" "[MULTIPLE-SSELECT] Classical trade theories assume: { =consumer homogeneity across national markets product heterogeneity existence of trade restrictions importance of marketing activities }" "[MULTIPLE-SSELECT] Since worldwide free trade is impossible, it is desirable to have economic cooperation on a smaller scale. This is known as: { theory of the best policy factor endowment theory =theory of the second best theory of relative advantage }" "[MULTIPLE-SSELECT] This kind of economic cooperation requires countries to remove duties among themselves but allows member countries to maintain their own tariffs against outsiders. { customs union =free trade area common market political union }" "[MULTIPLE-SSELECT] NAFTA represents this type of economic cooperation. { =free trade area customs union common market monetary union }" "[MULTIPLE-SSELECT] This kind of economic cooperation requires countries to have identical tariffs against outsiders. { =customs union free trade area common market political union }" "[MULTIPLE-SSELECT] This kind of economic cooperation makes it necessary for a foreign firm to enter a member country with the least nontariff restrictions. { free trade area customs union =common market monetary union }" "[MULTIPLE-SSELECT] When countries agree to remove restrictions on the movement of factors of production, their economic cooperation is known as: { customs union free trade area =common market political union }" "[MULTIPLE-SSELECT] This is not a characteristic of monetary union. { total and irreversible convertibility of currencies complete freedom of capital movements =revocably fixed exchange rates }" "[MULTIPLE-SSELECT] This type of economic cooperation requires convertible currencies, freedom of capital movements, and irrevocably fixed exchange rates. { free trade area customs union common market =monetary union }" "[MULTIPLE-SSELECT] Monetary union requires convertibility of currencies to be: { total but reversible =total and irreversible partial and reversible partial and irreversible }" "[MULTIPLE-SSELECT] An economic union requires: { uniform tariff rates among member countries uniform tariffs against outsiders removal of restrictions on movement of factors of production =harmonization of the national economic policies }" "[MULTIPLE-SSELECT] If a single currency is not possible, a monetary union must adopt these currency conditions, except: { complete freedom of capital movements total and irreversible convertibility of currencies =irrevocably fixed exchange rtes with some fluctuation }" "[MULTIPLE-SSELECT] This is not a characteristic of a monetary union. { =partial freedom of capital movements total and irreversible convertibility of currencies irrevocably fixed exchange rates with no fluctuation }" "[MULTIPLE-SSELECT] “One money, one market” is the description of this type of economic cooperation. { free trade area common market =economic union political union }" "[MULTIPLE-SSELECT] Many members of the European Union members have adopted a single currency (i.e, the euro) in order to form this kind of economic cooperation. { free trade area customs union common market =economic union }" "[MULTIPLE-SSELECT] Malaya and Singapore formed a new nation called Malaysia in the 1960s. This type of cooperation is { common market monetary union economic union =political union customs union }"