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 United States finances current account deficits largely with dollars and, as a result, faces almost no constraint on its ability to run deficits. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Suppose the United states production possibility frontier was flatter to the widget axis, whereas Germany’s was flatter to the butter axis. We now learn that the German wage doubles, but U.S. wages do not change at all. We now know that A) the United States has no comparative advantage. B) Germany has a comparative advantage […]
Date: September 10th, 2020
The shipbreakers of Alang are A) a metaphysical representation of the WTO, deriving from Edgar Rice Burroughs’ Princess of Mars. B) an early version of the Russian Ice-breaker of the Dnieper-Alang class. C) a capital-intensive industry. D) competing with pollution-producing industries in countries outside of India. E) doing environmentally conscious work. ANSWER D
Date: September 10th, 2020
Alan Garcia A) in his first Presidency in Peru, followed free market economic policies. B) nationalized the property of the financial services sector during his first Presidency. C) was never freely elected in Peru and ruled with the support of the military. D) maintained balanced budgets and helped Peru avoid the economic problems most Latin […]
Date: September 10th, 2020
Linder’s hypothesis says that countries with ________ of preferences will trade intensively with each other. A) differences B) utility C) similarity D) elasticity ANSWER C
Date: September 10th, 2020
Which of the following statements is TRUE? A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition. B) Free trade is beneficial only if your competitor does not pay unreasonably low wages. C) Free trade is beneficial only if both countries have access to the same technology. […]
Date: September 10th, 2020
