In the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to A) land owners in poor countries. B) capital owners in rich industrialized countries. C) land owners in rich industrialized countries. D) production workers in both rich and poor countries. E) terms of trade in developing […]
The payment of a dividend by a foreign company to an American stockholder represents A) a debit in the U.S. capital account. B) a credit in the U.S. current account. C) a credit in the U.S. official reserve account. D) a debit in the U.S. current account. ANSWER B
Which of the following statements is the MOST accurate? In general, under the monetary approach to the exchange rate A) the interest rate is not independent of the money supply growth rate in the short run. B) the interest rate is independent of the money supply growth rate in the long run. C) the interest […]
If the market for products produced by firms in a monopolistically competitive industry becomes ________, then there will be ________ firms and each firm will produce ________ output and charge a ________ price. A) smaller; fewer; less; higher B) smaller; more; less; higher C) smaller; more; less; lower D) smaller; fewer; less; lower E) smaller; […]
The growth successes of the high performance Asian economies A) supports the belief that economic development requires import substitution policies. B) rejects the belief that export-oriented industrialization is likely to promote economic development. C) rejects the belief that economic development requires import substitution policies. D) suggests that free trade policies are required for successful economic […]
In today’s world markets, poor developing countries tend to rely primarily on exports of A) agricultural products. B) primary products. C) mineral products. D) manufactured products. E) high-tech products. ANSWER D
Economies of scale are an important determinant of comparative advantage based trade. Indicate whether the statement is true or false ANSWER FALSE
If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) infinite opportunity costs. E) uncertain opportunity costs. ANSWER B
A forward exchange market contract obligates the owner to make a trade at a specified exchange rate a fixed number of days in the future. Indicate whether the statement is true or false ANSWER TRUE
Nondeliverable forward exchange markets in centers such as Hong Kong and Singapore help to circumvent which problem? A) loss of goods shipped from Hong Kong and Singapore B) inconvertible currencies cannot be traded in foreign markets C) lag between the spot exchange date and the value date D) high travel costs from Asia to “traditional” […]
