If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must
A) harm its terms of trade.
B) have no effect on its terms of trade.
C) improve its terms of trade.
D) decrease its marginal propensity to consume.
E) harm world terms of trade.
Question 2 - All of the following are reasons countries may be unable to use discriminatory trade practices to enforce labor standards EXCEPT
A) in order to be effective a coalition of countries must join together to impose them.
B) countries can never impose trade barriers on other sovereign nations.
C) the WTO requires nations to treat other nations the same.
D) a single country may be unsuccessful in convincing members of its trading block to participate in imposing the sanctions.
E) retaliation or a full blown trade war might result.
Question 3 - Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call, which of the following is FALSE?
A) Sandy has a comparative advantage in sales calls.
B) Tim has a comparative advantage in sales calls.
C) Sandy has a comparative advantage in economics reports.
D) Sandy has an absolute advantage in both economics reports and sales calls.
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