Which of the following has not been suggested as a reconciliation of Leontief’s findings? A) international differences in tastes B) U.S. tariff structure C) failure to take into account natural resources D) temporary data problems immediately after World War II ANSWER D
Date: September 10th, 2020
Refer to the above table. How could the U.S. government justify its decision to offer a subsidy to a profitable and successful business? What will be an ideal response? ANSWER It could point out that this $10 million pump-priming expenditure results in a profit of $110 million. If Boeing paid a marginal income tax […]
Date: September 10th, 2020
In an industry where firms experience internal scale economies, the long-run cost of production will depend on A) the size of the market. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) individual firms’ fixed costs. E) whether the country engages in inter-industry trade. ANSWER A
Date: September 10th, 2020
The spot rate is the rate at which foreign currencies will be exchanged a specified number of days in the future. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation? A) export promotion B) import substitution C) international commodity agreements D) Infant Industry promotion E) intra-industry trade practice ANSWER A
Date: September 10th, 2020
ISI policies were brought to an end primarily by A) their inability to solve the crises of the 1980s. B) authoritarian governments interested in total control over the economy. C) populist politicians. D) the growing perception that they were creating long-term economic inefficiencies. E) Both A and D. ANSWER E
Date: September 10th, 2020
If the production possibilities frontier of one trade partner (“Country A”) is bowed out (concave to the origin), then increased specialization in production by that country will A) increase the economic welfare of both countries. B) increase the economic welfare of only Country A. C) decrease the economic welfare of Country A. D) decrease the […]
Date: September 10th, 2020
Leontief’s results can be interpreted as A) evidence against the classical model. B) evidence against the Heckscher-Ohlin model. C) support for the classical model. D) support for the Heckscher-Ohlin model. ANSWER B
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what? What will be an ideal response? ANSWER $5/ton.
Date: September 10th, 2020
