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. […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Trading French wine for California wine is an example of intraindustry trade. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
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
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
The current account must necessarily always be in balance. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The HPAE (High Performance Asian Economies) countries A) have all consistently supported free trade policies. B) have all consistently maintained import-substitution policies. C) have all consistently maintained non-biased efficient free capital markets. D) have all maintained openness to international trade. E) have all outperformed the U.S. ANSWER D
Date: September 10th, 2020
Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists A) shrug their shoulders and ignore the issue. B) agree that trade theory is thus proven hollow and internally inconsistent. C) argue that U.S. consumers should not consume lettuce. D) argue that the poor conditions and low wages are […]
Date: September 10th, 2020
Suppose that the U.S. Open ticket costs $100 and the British Open ticket costs £50 and the exchange rate is $1.43. How much does the British Open ticket cost for an American attending the British Open? What will be an ideal response? ANSWER $1.43 * 50 = $71.50
Date: September 10th, 2020
Intraindustry trade is characterized by what two features? What will be an ideal response? ANSWER Economies of scale and differentiated products
Date: September 10th, 2020
