Taiwan and South Korea are examples of developing nations that have recently pursued these industrialization policies A) import substitution. B) export promotion. C) commercial dumping. D) multilateral contract. E) trade embargoes. ANSWER B
Date: September 10th, 2020
In the model of monopolistic competition, compared to a firm with a higher marginal cost, a firm with a lower marginal cost will set a ________ price, produce ________ output, and earn ________ profits. A) lower; more; more B) higher; more; more C) lower; less; less D) higher; less; less E) higher; less; more […]
Date: September 10th, 2020
A problem with Leontief’s methodology is that A) he had no information on U.S. and foreign factor endowments. B) he did not use information on foreign factor intensities. C) he ignored the roles of other factors of production such as natural resources. D) All of the above are problems. ANSWER D
Date: September 10th, 2020
When Japan’s MITI (Ministry of International Trade and Industry) focused resources on the semiconductor industry, and in particular on Random Access Memory (RAM), it was viewed as a typically successful Japanese foray into a new dynamic strategic sector. The results, as viewed by the late 1990s A) justified this view. B) led to similar structuring […]
Date: September 10th, 2020
Monetary policy is most effective at home when exchange rates are flexible. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Balance of Payments always balances. Indicate whether the statement is true or false ANSWER TRUE Explanation: Sum of the credits and debits on all accounts will always be equal.
Date: September 10th, 2020
If one country’s wage level is very high relative to the other’s (the relative wage exceeding the relative productivity ratios), then if they both use the same currency A) neither country has a comparative advantage. B) only the low wage country has a comparative advantage. C) only the high wage country has a comparative advantage. […]
Date: September 10th, 2020
If people expect relative PPP to hold A) the difference between the interest rates offered by dollar and euro deposits will equal the difference between the inflation rates expected, in the United States and Europe, respectively, over the relevant horizon. B) the difference between the interest rates offered by dollar and euro deposits will equal […]
Date: September 10th, 2020
Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Who among the following list of people is an early 20th century economist from Yale University who wrote the book The Theory of Interest? A) Gustav Cassel B) Irving Fisher C) David Ricardo D) Paul Krugman E) Israel Kirzner ANSWER B
Date: September 10th, 2020
