Question

[2] A good or service produced in Country A and sold in Country B is:

A) an import to Country B.

B) an export from Country B.

C) a secondary purchase for Country B.

D) an unaccounted good or service for Country B.

[3] Specialization:

A) increases dependence on markets and trade.

B) permits greater levels of production than would be attained without it.

C) both of the above.

D) none of the above.

[4] You would expect an increase in international specialization among nations that:

A) restrict trade with one another.

B) face widening differences in the costs of different resources among those nations.

C) experience an increase in a mentality that each nation is best at producing everything it needs.

D) all of the above.

[5] According to the principle of comparative advantage, the main reason two countries should each produce a single good and trade with the other country for the good they do not produce is:

A) differences in access to capital.

B) different technological endowments.

C) greater efficiency due to specialization.

D) differences in the skills of their labor forces.

[6] A nation is said to have a comparative advantage when it has a:

A) larger demand for a product than does another nation.

B) larger inventory of a product to sell than does another nation.

C) lower opportunity cost of producing a product than does another nation.

D) monopoly over a product and, through that, complete control over its price.

[13] Which of the following statements about U.S. tariff policy is true?

A) Some countries import goods to the U.S. under special reduced tariff arrangements.

B) Countries such as France and Japan import goods to the United States under a general tariff schedule.

C) Countries such as Cuba and North Korea import goods to the United States at tariffs higher than those set for other nations.

D) All of the above.

Answer 1

Question 2

The good or service is produced in Country A and it is sold in Country B.

When a good is produced in one country and is sold in another country then country producing the good is said to be exporting the good and other country is importing it.

So,

This is an import to Country B.

Hence, the correct answer is the option (A).