QUESTION The main tenet of mercantilism was that it was in a country’s best interests to maintain a trade surplus. Indicate whether the statement is true or false. ANSWER TRUE The main tenet of mercantilism was that it was in a country’s best interests to maintain a trade surplus (to export more than it […]
Date: September 3rd, 2020
QUESTION Limits on imports are often in the interests of domestic consumers, but not domestic producers. Indicate whether the statement is true or false. ANSWER FALSE Limits on imports are often in the interests of domestic producers, but not domestic consumers.
Date: September 3rd, 2020
QUESTION A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it. Indicate whether the statement is true or false. ANSWER TRUE A country has an absolute advantage in the production of a product when it is more efficient than any […]
Date: September 3rd, 2020
QUESTION The major advantage of mercantilism was that it viewed trade as a zero-sum game. Indicate whether the statement is true or false. ANSWER FALSE The flaw with mercantilism was that it viewed trade as a zero-sum game. (A zero-sum game is one in which a gain by one country results in a loss […]
Date: September 3rd, 2020
QUESTION According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is with restricted trade. Indicate whether the statement is true or false. ANSWER TRUE The basic message of the theory of comparative advantage is that potential world production is greater with unrestricted free trade than […]
Date: September 3rd, 2020
QUESTION In his book The Wealth of Nations, Adam Smith supported the mercantilist assumption that trade is a zero-sum game. Indicate whether the statement is true or false. ANSWER FALSE In his 1776 landmark book The Wealth of Nations, Adam Smith attacked the mercantilist assumption that trade is a zero-sum game, with the argument […]
Date: September 3rd, 2020
QUESTION According to Adam Smith, countries should specialize in the production of goods for which they have an absolute advantage and then trade these for goods produced by other countries. Indicate whether the statement is true or false. ANSWER TRUE According to Adam Smith, countries should specialize in the production of goods for which […]
Date: September 3rd, 2020
QUESTION According to Ricardo’s theory of comparative advantage, it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to import goods that it produces less efficiently. Indicate whether the statement is true or false. ANSWER TRUE According to Ricardo’s theory of comparative advantage, it […]
Date: September 3rd, 2020
QUESTION The veil of ignorance, a conceptual device designed by John Rawls, supports: A. impartiality in justice. B. oppression of people by totalitarian governments. C. economic suppression of people. D. apartheid laws. E. cultural relativism. ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following is most likely to be a function of ethics officers in firms? A. Auditing decisions to make sure they are consistent with the company’s moral principles B. Identifying the ethical principles followed by competing companies C. Ensuring that the economic interests of stakeholders is given prime importance D. Training managers […]
Date: September 3rd, 2020
