Most theories of comparative advantage explain trade patterns due to international differences in A) demand conditions. B) supply conditions. C) demand and supply conditions. D) tariffs. ANSWER B
Date: September 10th, 2020
The “East Asian Miracle” is A) the ability of so many people to live in such small areas. B) the fact that so many Influenza varieties originate from this region. C) the fact that poor dualistic economies managed to escape the vicious circle of poverty. D) the ability to maintain large positive trade balances with […]
Date: September 10th, 2020
The global financial crisis that began in 2008 was a great illustration of how interdependent national economies are. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the model of monopolistic competition, an increase in industry output will cause individual firms’ demand curves to become ________, which will ________ demand for higher-priced goods and ________ demand for lower-priced goods. A) flatter; reduce; increase B) steeper; reduce; increase C) flatter; increase; reduce D) steeper; increase; reduce E) horizontal; reduce; reduce ANSWER […]
Date: September 10th, 2020
What is the largest center for currency trading? What will be an ideal response? ANSWER London
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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
