Which type of industry is likely to see more intraindustry trade? What will be an ideal response? ANSWER High technology
Date: September 10th, 2020
We know that in antiquity, China exported silk because no one in any other country knew how to produce this product. From this information we know that A) China had a comparative advantage in silk. B) China had an absolute advantage, but not a comparative advantage in silk. C) no comparative advantage could exist because […]
Date: September 10th, 2020
The most important participants in foreign exchange markets are ________. Fill in the blank(s) with correct word ANSWER Commercial banks
Date: September 10th, 2020
If output more than doubles when all inputs are doubled, production is said to occur under conditions of A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) interindustry trade. ANSWER A
Date: September 10th, 2020
Explain why exchange rate model based on PPP is a long run theory. What will be an ideal response? ANSWER PPP theory is a monetary approach to the exchange rate. It is a long-run theory because it does not allow for price rigidities. It assumes that prices can adjust right away to maintain full […]
Date: September 10th, 2020
It is possible for every nation to have BOP surpluses. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The HPAE “economic miracle” illustrates a clear case in which A) exports and growth were positively related. B) exports were promoted by successful economic growth. C) economic growth was determined by successful export promotion. D) trade policy dominated other considerations in promoting economic growth. E) import substitution enhanced economic development. ANSWER A
Date: September 10th, 2020
At the end of the populist cycle, workers are better off than they were before the populist cycle began in terms of real wages and job creation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to Linder, the gains from international trade come about because consumers are exposed to A) a greater variety of goods. B) increasing returns to scale. C) imperfect competition. D) None of the above. ANSWER A
Date: September 10th, 2020
The Shipbreakers of Alang represent a perfect example of how a developing country can apply the principles of the Heckscher-Ohlin model, since A) shipbreaking is generally considered to be a capital-intensive operation and India, being a large country has much capital. B) shipbreaking is a labor-intensive operation in India, and India has many workers since […]
Date: September 10th, 2020
