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.Management Sciences
Category: The International Economy And Globalization
Import substitution is the replacement of ____ by domestic production _____ protection of ________?
A. exports, subsidies
B. exports, patents
C. imports, high tariffs or import quotas
D. imports, subsidies
A reduced share of the world export market for the United States would be attributed to?
A. Decreased productivity in U.S manufacturing
B. High incomes of American households
C. Relatively low interest rates in the United States
D. High levels of investment by American corporations
A tariff causes domestic firms to ________ and consumers to?
A. overproduce, under consume
B. Overproduce, overconsume
C. underproduce, under consume
D. underproduce, overconsume
The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?
A. services and white-collar jobs
B. manufacturing and blue-collar jobs
C. natural resource extraction and mining jobs
D. agriculture and farming jobs
Increased foreign competition tend to ?
A. Intensify inflationary pressure at home
B. Induce falling output per worker-hour for domestic workers
C. Place constraints on the wages of domestic workers
D. Increase profits of domestic import competing industries
Free trade is based on the principle of ?
A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage
When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
A. balance of trade
B. comparative advantage
C. balance of payments
D. terms of trade
The movement to free international trade is most likely to generate short-term unemployment in which industries ?
A. Industries in which there are neither imports nor exports
B. Imports competing industries
C. Industries that sell to domestic and foreign buyers
D. Industries that sell to only foreign buyers
If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
A. 0.4A
B. 2.5A
C. 10A
D. 1B
To prevent the external value of the currency from falling the government might ?
A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending
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