1-For each watch Switzerland produces, it gives up the opportunity to produce 50 pounds of cheese. Germany can produce one watch at a cost of 100 pounds of cheese. Which of the following is true?

Group of answer choices

The opportunity cost of producing watches is greater in Switzerland.

The opportunity cost of producing cheese is the same in both countries.

The opportunity cost of producing cheese is greater in Switzerland.

It is impossible to compare costs because the two countries use different technologies.

2-The ratio (in physical units) at which two countries trade goods is known as the

Group of answer choices

price to earnings ratio

comparative advantage ratio

terms of trade

opportunity cost

3-The cost of producing a car in Germany is 2,000 bushels of wheat, and the cost of producing a car in Canada is 1,200 bushels of wheat. The two countries can both benefit if the terms of trade are

Group of answer choices

greater than 2,000 of wheat per car

less than 1,200 bushels of wheat per car

between 1,200 bushels and 2,000 bushels of wheat per car, and Germany produces cars

between 1,200 bushels and 2,000 bushels of wheat per car, and Germany produces wheat

4-If countries begin to specialize according to comparative advantage, a more efficient use of resources occurs. As a result, the world output of at least one good increases, with no decrease in the output of any other good.

Group of answer choices

True

False

5-The amount by which the current price of a resource exceeds the minimum price necessary to make the resource available is its:

Group of answer choices

market value

carrying capacity

economic rent

discount rate

6-Thereason(s) why two-way trade exists is due to:

Group of answer choices

variations in transportation costs

seasonal factors

product differentiation

all of the above

7-Tariffs

Group of answer choices

benefit consumers by lowering prices

harm producers by decreasing competition in the product market

benefit domestic producers because they can charge higher prices and sell more output

skew the terms of trade in favor of importing nations

8-One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff

Group of answer choices

decreases the domestic price

increases the quantity of imports

decreases the quality of imports

raises tax revenue

9-Protectionism is

Group of answer choices

the belief that a nation's industries should be protected from foreign competition

the belief that a nation's consumers should be protected from foreign competition

based on the idea that economies of scale are important

consistent with absolute advantage, but not with comparative advantage

10-A decrease in the supply of loanable funds, all other things unchanged, will ________ the interest rate.

Group of answer choices

not change

increase

decrease

not affect