Import substitution industrialization in Latin America A) relied on increased exports. B) provided subsidies for exports. C) shifted the bulk of exports away from primary commodities. D) created disincentives to export. E) Answers A and C are correct. ANSWER D
Date: September 10th, 2020
MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above. ANSWER A
Date: September 10th, 2020
________ indicates whether a country is a net borrower from or lender to the rest of the world. A) The basic balance B) The liquidity balance C) The capital account D) The current account ANSWER D
Date: September 10th, 2020
Intraindustry trade relies on A) economies of scale. B) the product cycle. C) differences in factor endowments. D) government industrial policies. E) monopoly pricing. ANSWER A
Date: September 10th, 2020
To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy. ANSWER C
Date: September 10th, 2020
Technology transfer comes only from nations importing new capital goods in the current account. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Two countries engaged in trade in products with no scale economies, produced under conditions of perfect competition, are likely to be engaged in A) inter-industry trade. B) monopolistic competition. C) intra-industry trade. D) Heckscher-Ohlin trade. E) oligopolistic competition ANSWER A
Date: September 10th, 2020
A(n) ________ of a nation’s currency will cause imports to ________ and exports to ________, all other things held constant. A) depreciation; increase; decrease B) appreciation; decrease; increase C) depreciation; decrease; increase D) appreciation; increase; increase E) depreciation; decrease; decrease ANSWER C
Date: September 10th, 2020
The relatively rapid economic growth experienced by Chile in the late 1980s A) supported the conventional Latin American reliance on import substitution. B) relied on the Harris-Todaro model to explain this growth. C) rejected the conventional Latin American reliance on import substitution. D) demonstrated the importance of market failure as a reason for import substitution. […]
Date: September 10th, 2020
Let us define the real wage as the purchasing power of one hour of labor. In the Ricardian 2X2 model, if two countries under autarky engage in trade then A) the real wage will not be affected since this is a financial variable. B) the real wage will increase only if a country attains full […]
Date: September 10th, 2020
