Question

1.) What a country imposes tariffe, if is likely to cause A.) increase quantities of imports B higher price for the import competing goods C. lower price for domestic production D.) less expensive export 2.)A(n) is a trade policy by which a nation agrees to limit itseport of a good in order to avond more restrictive trade polices A) Tarif B) (VRA) Voluntary restraint agreement C.Jimport quota D) inpeat ban 3.) Appreciation of the dollar will A. decrease the prices of both US imports and experts B increase the prices of both US imports and exports C. decrease the prices of US imports, but increase the prices of foreigners of US Dincrease the prices of US imports but decrease the prices of the foreigners of US 4. the exchange rate is the: Alopportunity cost at which good are produced domestically B. balance-of-trade ratio of one country to another C price of one country's currency expressed in terms of another country's currency D. Jamount of currency that can be purchased with 1 ounce of gold 5 suppose that today one British pound exchanges for $1.60. If next wock 1 pound exchanges for $170. it is clear that A) The pound has depreciat relative to the dollar. B.) The dollar has appreciated relative to the pound C.) Both currencies have appreciated D) The dollar has depreciated relative to the pound 6) When a Japanese businesswoman traveling in the United Sules asks "How many US dollars can I get for these yen? she wants to know the A) Gold standard rate B.) Exchange rate C) Terms of trade D) Currency trade rate 7) If the exchange rate between the US dollar and Mexican Pese changes from $15 Peso to $1-8 Peso, then A)All Mexican producers and consumers will lose B)US manufacturers will lose C.JUS consumers of Mexican produce will benefit D.) Mexican consumers of US electronic devices will benefit 8) suppose a bottle of wine produced in France sells for 35 euros. If the exchange rate between euros and dollars is € 1 = 1.30, how much will an American pay for the bottle of wine in America? A)$130.00 B.)$35.00 C.)$45.00 D$26.92

Answer 1

(1) (B)

Import tariff increases domestic price for the import-competing good, which decreases imports.

(2) (B)

A VRA is an agreement to voluntarily limit exports.

(3) (C)

Appreciation of dollar makes US imports cheaper, but US exports costlier, which increases imports and decreases exports.

(4) (C)

Exchange rate states the relative price of two currencies.

NOTE: As per Chegg Answering Policy, 1st 4 questions are answered.