The current account is equal to A) S – I. B) C + I + G + X. C) I + X. D) T – G. ANSWER A
Date: September 10th, 2020
It may be argued that Japan’s explicit promotion of its microchip industry was an excellent example of successful industrial policy. What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own stated criteria, was Japan’s exercise successful? Why or why not? What information would a government […]
Date: September 10th, 2020
Which of the following statements about the financial crisis that began in 2008 is true? A) It was a great illustration of how interdependent national economies are. B) Most economists agree that it originated in China. C) It only lasted 3 weeks. D) It only affected housing markets. ANSWER A
Date: September 10th, 2020
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
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Assuming relative PPP, fill in the table below: What will be an ideal response? ANSWER Using ( – )/ = ΠUS, t – ΠE, t one gets:
Date: September 10th, 2020
It is generally claimed that state trading, or centrally controlled trading will tend to reach a lower economic welfare than would be reached by allowing market forces to determine trade flow directions and terms of trade. Illustrate a counter-example to this proposition. ANSWER In general, if we begin with any suboptimal distortion, the theory […]
Date: September 10th, 2020
Leontief used an input-output table in order to test the A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above. ANSWER B
Date: September 10th, 2020
This refers to an increase in government spending that produces a reduction in private spending A) crowding out. B) investment disappointment. C) social loss. D) deadweight loss. ANSWER A
Date: September 10th, 2020
Direct investment and security purchases are included in A) current account items. B) capital account items. C) basic balance account items. D) unilateral transfers. ANSWER B
Date: September 10th, 2020
