Economics

The relatively rapid economic growth experienced by Chile in the late

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. […]

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Date: September 10th, 2020

If the United States follows an expansionary monetary policy relative

If the United States follows an expansionary monetary policy relative to Japan and Germany, which of the following is not likely to occur? A) U.S. interest rates will rise relative to Japan and Germany B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income   ANSWER […]

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Date: September 10th, 2020

When one applies the Heckscher-Ohlin model of trade to the issue of tr

When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade A) must help low skill workers on both sides of the border. B) is likely to hurt high-skilled workers in the U.S. C) is likely to hurt low-skilled workers […]

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Date: September 10th, 2020

Intraindustry trade is characterized by what two features of the indus

Intraindustry trade is characterized by what two features of the industry and market? A) Diseconomies of scale and homogeneous products B) Non-tariff barriers and large-scale foreign investment C) Quota auctions and low effective rates of protection D) Economies of scale and differentiated products E) Government subsidies and industrial policy   ANSWER D

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Date: September 10th, 2020

The disappointment with import-substitution policies is in part becaus

The disappointment with import-substitution policies is in part because A) of the rapid and continuous growth record of South American countries. B) many countries pursuing this strategy experienced stagnation in their growth. C) this policy is inconsistent with sophisticated economic growth models. D) this policy tended to create world-class industrial competitors. E) of the financial […]

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Date: September 10th, 2020

Interindustry trade refers to A) international trade of products made

Interindustry trade refers to A) international trade of products made within the same industry. B) domestic trade of products made within the same industry. C) international trade of products made across different industries. D) the exchange of similar items that are differentiated. E) None of the above.   ANSWER C

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Date: September 10th, 2020