Economics

Under fixed exchange rate, in general which one of the following state

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 […]

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Date: September 10th, 2020

The Shipbreakers of Alang utilize much labor and little capital, there

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 […]

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Date: September 10th, 2020

Would each of the following groups be happy or unhappy if the Mexican

Would each of the following groups be happy or unhappy if the Mexican peso appreciates against the U.S. dollar? Answer the question for each of the following: (a) The U.S. pension funds holding Mexican government bonds (b) U.S. tourists planning a trip to Mexico (c) Mexican exporting manufacturers (d) A Mexican firm trying to buy […]

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Date: September 10th, 2020

Under fixed exchange rate, in general A) the domestic and foreign int

Under fixed exchange rate, in general A) the domestic and foreign interest rates are equal, R = R . B) R = R + (Ee – E)/E. C) the foreign and domestic interest rates are unequal. D) the expected rate of domestic currency depreciation is high. E) the expected rate of currency depreciation is one. […]

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Date: September 10th, 2020

The fact that articles of clothing sold in Walmart are produced by ver

The fact that articles of clothing sold in Walmart are produced by very poorly paid workers in Honduras, is a fact that if taken into account A) would prove to economists that the Ricardian model of comparative advantage is false. B) would prove to economists that the equal-value in trade concept summed up in the […]

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Date: September 10th, 2020

Which of the following is NOT a characteristic of populist regimes? A

Which of the following is NOT a characteristic of populist regimes? A) Nationalistic ideologies B) Focus on economic growth C) Focus on income redistribution D) Using economic tools to reach specific goals regarding labor, the orientation of business or the role of foreigners E) Focus on controlling inflation   ANSWER E

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Date: September 10th, 2020

According to the product life cycle model, comparative advantage A) m

According to the product life cycle model, comparative advantage A) may move from one country to another as a product matures. B) always stays in the country where a product is invented. C) in agricultural or homogeneous manufactured goods is determined by the stage of the life cycle these products are in. D) Both A […]

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Date: September 10th, 2020