Question

Question 62

How would a strong U.S. dollar impact the trade of grain produced in the United States?

U.S. grain exports decrease

U.S. grain exports increase

U.S. grain imports decrease

U.S. grain imports stagnate


Question 63

Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred?

The opportunity cost of producing milk is lower for Country A.

The opportunity cost of producing cotton is higher for Country B.

Country A has a natural resource advantage in cotton.

Country B has a natural resource advantage in milk.


Question 64

Marx would most likely support a plan for

government ownership of most production

creating a worldwide free trade agreement

eliminating income taxes on the wealthy

income taxes based on ability to pay



Question 65

To increase your standard of living, your wages must

rise faster than the inflation rate

rise more slowly than the inflation rate

keep pace with the inflation rate

have a negative inflation rate

Answer 1

grain exports increase for 62

Answer 2

The answer for question 62 is that the grain exports increase because the strong dollar increases production costs for multinationals and consequently affects company profits. The anser for 63 is that the Country A has a natural resource advantage in cotton as the market will be balanced. For question 64 Marx would most likely support a plan for government ownership of most production because Mrx was a person who tought that everything should be for everybody and he had no capitalists ideas. and for questtion 65 the true would be that your wage needs to rise faster than the inflation rate  because it increases de prices of the market basket and the goods and services in general. Inflation is not good for your wage