The “East Asian Miracle” of the “Four Tigers” in the 1960s was replicated by A) developing countries around the world. B) other East Asian countries. C) Sub Sahara African countries. D) Industrialized countries. E) Eastern European countries. ANSWER B
Date: September 10th, 2020
If the United States and Mexico trade Budweiser for Modelo beer, what type of trade does this represent? What will be an ideal response? ANSWER Intraindustry
Date: September 10th, 2020
Which currency is most commonly traded? What will be an ideal response? ANSWER The U.S. dollar
Date: September 10th, 2020
Mahatma Gandhi exhorted his followers in India to promote economic welfare by decreasing imports. This approach A) makes no sense. B) makes no economic sense. C) is consistent with the the Ricardian model of comparative advantage. D) is not consistent with the Ricardian model of comparative advantage. E) guarantees benefits for Indian workers. ANSWER […]
Date: September 10th, 2020
Linder’s hypothesis provides an explanation for A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) All of the above. ANSWER C
Date: September 10th, 2020
Under the monetary approach to the exchange rate A) an interest rate decrease is associated with higher expected inflation and a currency that will be weaker on all future dates. B) an interest rate increase is associated with higher expected deflation and a currency that will be weaker on all future dates. C) an interest […]
Date: September 10th, 2020
The Shipbreakers of Alang arouse the ire of Greenpeace because of A) India’s non-repentant nuclear stance. B) India’s import-competing industrialization policies. C) the difficulty of avoiding ship accidents between Greenpeace’s sailboat and the reconstructed Container ships of Alang. D) the large amount of pollution associated with the operations at Alang. E) their competition with capital-intensive […]
Date: September 10th, 2020
The Lost Decade refers to the years between approximately A) 1975 and 1985. B) 1980 and 1990. C) 1987 and 1997. D) 1972 and 1980. E) 1960 and 1970. ANSWER B
Date: September 10th, 2020
In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have ________ prices, ________ quantities sold, and ________ profit levels. A) different; different; different B) identical; different; different C) different; different; identical D) identical; different; identical E) identical; identical; different ANSWER A
Date: September 10th, 2020
The Country of Rhozundia is blessed with rich copper deposits. The cost of copper produced (relative to the cost of widgets produced) is therefore very low. From this information we know that A) Rhozundia has a comparative advantage in copper. B) Rhozundia should import copper and export widgets. C) Rhozundia should export both widgets and […]
Date: September 10th, 2020
