Which of the following is an example of a regional currency arrangement? A) exchange rate union B) currency cartel associations C) free-trade zones D) most-favored nation status E) agreement on commercial trade ANSWER A
Date: September 10th, 2020
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
Discuss the differences between Absolute PPP and Relative PPP. What will be an ideal response? ANSWER Absolute PPP states that the exchange rate between two currencies equals the ratio of their price levels. Relative PPP states that the percentage change in the exchange rate between two currencies over a given period equals the difference […]
Date: September 10th, 2020
________ is necessary to “balance” the BOP statement. A) Reserve inflow B) Statistical discrepancy C) Debit transaction D) Credit transaction ANSWER B
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
