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 […]
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
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
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 […]
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
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 […]
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
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. […]
During the global financial crisis of 2008-2009, it appeared that overt global policy coordination was not practiced, but countries were all following similar policies, such as decreasing interest rates. Indicate whether the statement is true or false ANSWER TRUE
Futures contracts differ from forward contracts in that A) future contracts ensures you will receive a certain amount of foreign currency at a specified future date. B) future contracts bind you into your end of the deal. C) future contracts allow you to sell your contract on an organized futures exchange. D) future contracts are […]
