Economics

Trade without serious income distribution effects is most likely to ha

Trade without serious income distribution effects is most likely to happen A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing.   ANSWER A

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Date: September 10th, 2020

When an individual or firm in the United States requests that a bank s

When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably A) call a foreign bank and arrange a purchase. B) call the central bank and arrange a purchase. C) call another bank customer with foreign exchange holdings. D) call another domestic bank and arrange a […]

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Date: September 10th, 2020

Internal economies of scale means that A) firms are experiencing lowe

Internal economies of scale means that A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs. B) firms will have lower profits after international trade begins, because costs will be higher than when they […]

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Date: September 10th, 2020

Intra-industry trade will tend to dominate trade flows when which of t

Intra-industry trade will tend to dominate trade flows when which of the following exists? A) small differences between relative country factor availabilities B) large differences between relative country factor availabilities C) homogeneous products that cannot be differentiated D) constant cost industries E) uneven distribution of abundant resources between two countries   ANSWER A

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Date: September 10th, 2020

The experience of sub-Saharan Africa, as compared to that of “Other As

The experience of sub-Saharan Africa, as compared to that of “Other Asia” (not including the HPAEs) supports the argument that A) high rates of protection tend to harm economic growth. B) the poorer is the country the easier it is for it to “catch up” economically. C) low rates of protection tend to promote economic […]

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Date: September 10th, 2020