Question 1 (Essay Worth 15 points)

Exchange Rates | Year | U.S.
Dollar | South Korean
Won | Malaysian
Ringgits | Indonesian
Rupiahs | 2008 | 1 | 9,046 | 3.49 | 9,022 | 2009 | 1 | 9,046 | 3.78 | 9,087 | 2010 | 1 | 8,995 | 3.65 | 9,144 |

a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries. b. Explain what impact the change in the value of the dollar between 2008 and 2009 will have on the United States current account.

Question 2 (Essay Worth 15 points)

Suppose the United States decides to impose a tariff on all wood products coming into the nation. a. Using a supply
II and IV only.
I, III, and IV only.

Question 8 (Multiple Choice Worth 2 points)
If Shadowland’s workers can produce eight lunch boxes or four sandwich containers per hour, then the opportunity cost of one lunch box is
4 sandwich containers.
¼ of a sandwich container.
8 sandwich containers.
½ of a sandwich container.
12 sandwich containers.

Question 9 (Multiple Choice Worth 2 points)
What would be the short-run impact of a tariff on all computers imported to the United States?
A higher standard of living
An increase in American production of computers
An increase in foreign production of computers
A decrease in the price of computers
A more efficient use of resources

Question 10 (Multiple Choice Worth 2 points)
ABC Corporation argues that it needs a tariff on bread baskets so that it can grow large enough to compete with foreign producers. This is an argument for an infant industry. job protection. national security. environmental standards. protection from dumping.

Question 11 (Multiple Choice Worth 2 points)
If the U.S. government imposes a tariff on imported steel to protect American steel manufacturers, then consumers pay less for steel sold in the nation. consumers benefit from lower priced domestic steel. consumers pay more for steel sold in the nation. producers will export more domestic steel to foreign nations. producers will supply more domestic steel at lower prices.

Question 12