Economics Unit 7 Trade

13 June 2024
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question
How do economists sometimes measure physical capital in a country?
answer
The amount of roads and bridges per capita.
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What causes a country to specialize in certain products?
answer
The country's natural resources.
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What is the law of comparative advantage?
answer
a country is better off producing goods and services that they have a comparative advantage supplying.
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How does specialization affect employment patterns?
answer
by changing job availability in a country or region.
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Where does the United States stand as a participant in international trade?
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It is the largest importer and exporter.
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When a nation exports more than it imports, economists say it has
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a trade surplus
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With a flexible exchange rate system, the exchange rate between two countries is determined by
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supply and demand
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When an economist says that a currency has become stronger, he or she means that
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it can be exchanged for more of a foreign currency
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The use of technology such as telephones and computers means that money exchanges and other financial transactions can be
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made instantaneously
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To convert U.S. dollars into another currency
answer
multiply the number of dollars by the number of units of the other currency per dollar