A. Total world exports of goods and services are now about ____________ the size of world gross domestic product (GDP).

one-tenth

one-eighth

one-fourth

one-third

B. With free trade, it______:

tends to increase the price of products

tends to decrease the price of products

has no impact on the price of products

tends to reduce theconsumptionof products

C. Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.

Based on the scenario, which of the following is true?

Group of answer choices

Karl has a comparative advantage in producing cars

Karl has a comparative advantage in producing trucks

Karl has a comparative advantage in producing both goods.

Karl has a comparative advantage in producing neither good.

D. On April 1, 2013, the price of a 16-ounce can of mixed nuts was 135 Mexican pesos at a supermarket in Juarez, Mexico. Based on the exchange rate of $0.08088 = 1 peso, the price of the 16-ounce can of mixed nuts was approximately ____________ U.S. dollars.

Group of answer choices

0.18

10.59

10.92

1,669.14

E. ______________ occurs when a national government or central bank intentionally adjusts its money supply to affect the exchange rate of its currency.

Group of answer choices

Dollarization

A complete breakdown of the fractional reserve banking system.

Exchange rate manipulation.

A currency war

F. Assuming the theory of purchasing power parity holds, what is the exchange rate between the United States and Mexico if the price of an identical Under Armour shirt costs $25 in the United States and 350 pesos in Mexico (rounded to the nearest penny)?

Group of answer choices

$0.07 per peso

$14.00 per peso

$0.70 per peso

$0.88 per peso