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
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
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
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 […]
The remarkable success of the HPAEs proves that A) trade policy is the key to successful economic growth. B) trade policy is irrelevant to successful economic growth. C) high educational standards is the key to successful economic growth. D) dual economies must suffer economic stagnation. E) trade policy can lead to a higher standard of […]
Under fixed exchange rate, in general which one of the following statements is the MOST accurate? A) The following condition should hold for domestic money market equilibrium: Ms/P = L(R , Y). B) The following condition should hold for domestic money market equilibrium: Md/P = L(R , Y). C) The following condition should hold for […]
The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the A) factor proportions explanation of the sources of comparative advantage. B) specific factor theory of comparative advantage. C) monopolistic competition theory of comparative advantage. D) scale economies theory of comparative advantage. E) basis of the non-dumping legislation. ANSWER […]
If the United States and Canada trade hydro-powered electricity for Hollywood films, what type of trade does this represent? What will be an ideal response? ANSWER Interindustry
How does the growth in the daily volume of foreign currency transactions compare with the growth rate of the global economy? What will be an ideal response? ANSWER Currency transactions are growing more rapidly.
The action of arbitrage is A) the process of buying a currency cheap and selling it dear. B) the process of buying a currency dear and selling it cheap. C) the process of buying and selling currency at the same price. D) the process of selling currency at different prices in different markets. E) the […]
