AFM 131 final exam questions & answers 2023/2024
Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Country A should:
A. produce both tin and corn in order to remain self...
Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to
produce corn. According to the theory of comparative advantage, Country A should:
A. produce both tin and corn in order to remain self-sufficient.
B. watch the global market to see which product brings the highest price.
C. import the resources needed to produce corn.
D. concentrate its production on tin and buy corn. - ANSWER-D. concentrate its production on tin and
buy corn.
The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their
product or use its trademark is called:
A) an outsource agreement.
B) a cartel.
C) a royalty.
D) a trading bloc. - ANSWER-C) a royalty.
The difference between money coming into and leaving the country plus money flows from factors such
as tourism and foreign aid is referred to as the:
A)balance of payments.
B)trade deficit.
C)balance of trade
D)balance of money flows. - ANSWER-A)balance of payments.
A major concern voiced by Canadian critics of NAFTA is that it would result in:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
