If countries have similar factor endowments and productivities, what type of trade are they most likely to have? What will be an ideal response? ANSWER Intraindustry
Date: September 10th, 2020
The open-economy multiplier is equal to the reciprocal of the marginal propensity to save. Indicate whether the statement is true or false ANSWER FALSE Explanation: It is equal to the reciprocal of the marginal propensity to save plus the marginal propensity to import.
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
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
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
