________ would likely oppose policies that allowed foreign workers to immigrate more freely.
A) Domestic labor
B) Domestic capital
C) Both domestic labor and capital
D) Neither domestic labor nor capital
Question 2 - Which of the following treaties/agreements would be associated with creating a free trade area for the European Union?
A) Treaty of Rome
B) Single Europe Treaty
C) Delors Agreement
D) Treaty on European Union
E) Schengen Agreement
Question 3 - Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
A) capital.
B) labor.
C) either capital or labor, depending on U.S. productivity.
D) neither capital nor labor.
E) Not enough information to tell.
Question 4 - Suppose that the Japanese yen appreciates significantly at some point, thus making Japanese imports more expensive. Japanese exporters may lower their profit margins to reduce the effect of the yen appreciation on U.S.
importers, producing a phenomenon known as A) the J-curve.
B) the absorption effect.
C) pricing to market.
D) international reserves compliance.
Question 5 - The current account balance of the United States began to deteriorate in
A) the late 1960s.
B) the early 1970s.
C) the early 1980s.
D) the late 1980s.
E) the early 1990s.
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