Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains?
A) Economies of scale from increased production decreases costs.
B) Intensified competition lowers prices.
C) Governments will be less reliant on tariff revenue.
D) Diversification of production lowers risks.
Question 2 - Imports tend to fall whenever a nation's currency appreciates because foreign products become more expensive to domestic consumers.
Indicate whether the statement is true or false
Question 3 - MFN status means that a trading partner is getting the best trade deal possible given current national trade policies.
Indicate whether the statement is true or false
Question 4 - During the 1930s, countries closed markets. The effect of these policies was that
A) export industries were better off in most countries.
B) import-competing industries did not gain.
C) the reduction in trade worsened the Great Depression.
D) consumers were better off.
Question 5 - If Mexicans increasingly lose confidence in their domestic financial markets and move their assets to other countries, the peso will depreciate.
Indicate whether the statement is true or false
Question 6 - A nation's votes at the IMF are proportional to its population.
Indicate whether the statement is true or false
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