1)When a firms"dumps" some of its products in anothercountry, it

A.

is specializing according to comparative advantage.

B.

sells its products abroad at a price lower than it costs to produce the goods.

C.

increases the total level of employment in the receiving country.

D.

creates an environmental hazard in the receiving country.

2)An import quota is a

A.

tariff imposed on goods that are dumped in the country.

B.

marketminus

imposed balancing factor that keeps prices of imports and exports in equilibrium.

C.

governmentminus

imposed restriction on the quantity of a specific good that can be imported.

D.

law that prevents ecologically damaging goods from being imported into a country.

3)

Tim has $27.00

27.00 a week to spend on cookies

cookies and

donuts

donuts.

The price of a bag of cookies

bagofcookies is $2.25

2.25 and the price of a box of donuts

boxofdonuts is $0.75

0.75.

DrawTim's budget line. Label it.

>>> Plot the quantity of donuts

donuts on the x-axis.

If the price of a box of donuts

boxofdonuts falls, Tim's consumption possibilities______.

A.

increase and if Tim spends all of his income on cookies

cookies, he can buy more cookies

cookies

B.

decrease

C.

increase or decrease but it is not possible to predict without knowing if his income also changes

D.

increase and if Tim spends all of his income on donuts

donuts, he can buy more donuts