Question : 8.3  Trade Between States 1) An export any good that is: A) : 1377412

8.3  Trade Between States

1) An export is any good that is:

A) rationed and licensed by the government.

B) produced and consumed domestically.

C) produced by public-sector firms.

D) produced domestically, but sold abroad.

2) An import is any good that is:

A) produced and consumed domestically.

B) priced through an auction mechanism.

C) produced abroad, but sold domestically.

D) rationed and licensed by the government.

3) Which of the following organizations keeps track of all interstate commodity shipments by state of origin and state of destination in the United States?

A) Bureau of Trade Statistics

B) Bureau of Transportation Statistics

C) Bureau for Foreign Assistance

D) Bureau of the Treasury Department

4) Which of the following statements is true?

A) The production possibilities curve of a nation is fixed in the long run.

B) The production possibilities curve can only shift outward.

C) The production possibilities curve of an economy is concave to the origin.

D) The slope of the production possibilities curve represents the ratio of the marginal cost of producing goods.

5) The curvature of an economy’s production possibilities curve represents:

A) an increasing marginal cost of producing both goods.

B) an increasing opportunity cost of producing each good.

C) diminishing marginal returns to inputs.

D) increasing terms of trade between both goods.

6) Which of the following statements is true?

A) An economy’s production possibilities curve is convex to the origin.

B) The opportunity cost of producing a good decreases as more resources are used for its production.

C) The production possibilities curve of a country is fixed in the short run.

D) The slope of the production possibilities curve represents the terms of trade between two states.

7) A production possibilities curve is plotted for a nation producing chairs and tables. Which of the following will cause a parallel shift in the production possibilities curve?

A) An intensive training program that increases the productivity of employees engaged in the production of tables

B) An intensive training program that increases the productivity of employees engaged in the production of chairs

C) An increase in the price of both chairs and tables

D) An increase in the availability of raw materials required for the production of both chairs and tables

8) Which of the following will cause an inward shift of the production possibilities curve of an economy?

A) A decrease in the demand for goods and services

B) Introduction of better technology

C) A decline in the size of labor force

D) Increase in the opportunity cost of the goods being produced

9) A production possibilities curve is plotted for a nation producing cotton and jute. Which of the following will cause a parallel outward shift of the production possibilities curve?

A) An invention of a new fertilizer that increases cotton production by 10%, without any effect on jute production

B) An invention of a new fertilizer that increases jute production by 5%, without any effect on cotton production

C) An invention of a new fertilizer that increases production of both cotton and jute by 10%

D) A two-times increase in the price of all cotton products and a three-times increase in the price of all jute products

10) Which of the following is likely to shift the production possibilities curve of a nation outward?

A) An increase in the education and experience of the workforce

B) An increase in the demand for the nation’s exports

C) An improvement in the terms of trade that the nation faces

D) An increase in the price of raw materials used by the nation