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It is a violation of the academic code of conduct

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ECO/212 Principles of Economics;Week Five International Economics Quiz;Student Name: Michelle Camarillo_________ Date: January 18, 2011;THIS IS AN INDIVIDUAL ASSIGNMENT. It is a violation of the academic code of conduct;to solicit or accept help from any outside source, including a tutor, online assistance, or any other;resource. Evidence of cheating on the quiz will be met with very dire consequences. You may;use your textbook and discussions in the main forum. Clearly mark your answers by changing;the color of your choices, using highlighting, or bold. Submit your quiz paper through the;Assignment tab.;Section One: Multiple Choice select the best response, each response is worth 1 point;1.;The economic argument for free trade is based on the principle of;a.;comparative advantage.;b.;absolute advantage.;c.;increasing opportunity cost.;d.;tariffs and quotas.;Use the graphs below to answer questions 2 through 4.;Country A;Country B;Hats;Hats;6;4;3;Shirts;8;Shirts;2.;Country A has to give up _____ hat(s) to get one shirt and Country B has to give up;hat(s) to get one shirt.;a.;2, 1;c.;2;b.;1, 2;d.;2;3.;Country A has a comparative advantage in the production of __________ and an absolute;advantage in the production of __________.;a.;hats, shirts;c.;hats, hats;b.;shirts, hats;d.;shirts, shirts;4.;With complete specialization according to comparative advantage, Country A and;Country B can produce a combined total of;a.;10 hats and 11 shirts.;c.;6 hats and 8 shirts.;b.;4 hats and 3 shirts.;d.;5 hats and 5 shirts.;Page 1;eco212;ECO/212 Principles of Economics;5.;When a country exports more than it imports, it is;a.;experiencing a trade deficit.;b.;experiencing a trade surplus.;c.;maintaining a balance of trade.;d.;not specializing according to comparative advantage.;6.;When a country imports more than it exports, it is;a.;experiencing a trade deficit.;b.;experiencing a trade surplus.;c.;maintaining a balance of trade.;d.;not specializing according to comparative advantage.;7.;The conclusion that specialization can potentially lead to increased consumption depends;on the assumption that;a.;each country specializes according to its absolute advantage.;b.;each country specializes according to its comparative advantage.;c.;each country produces only what the other country wants to consume.;d.;transportation costs are equal to zero.;8.;Arguments in favor of restricting trade between nations include;a.;the principle of comparative advantage;b.;the principle of absolute advantage.;c.;protecting infant (developing) industries.;d.;all of the above.;9.;An increase in the value of the U.S. dollar relative to the Mexican peso will likely result;in a(n) __________ in U.S. imports and a(n) __________ in U.S. exports, ceteris paribus.;a.;increase, increase;b.;increase, decrease;c.;decrease, increase;d.;decrease, decrease;10.;Suppose there is an increase in the demand for oil, Kuwaits main export good, and;market interest rates on financial assets denominated in dinar increase relative to U.S.;interest rates. Ceteris paribus, these events will likely cause;a.;a decrease in the demand for dinar.;b.;an increase in the demand for dollars.;c.;a depreciation of the dollar relative to the dinar.;d.;an increase in the international value of the dollar.;Page 2;eco212

 

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