For countries such as the United States and the United Kingdom, it is important to have trade surpluses in order to service their external debts. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following transactions is a debit in the US current account? A) Export of merchandise B) Export of services C) Gifts to foreigners D) Foreign bond purchases ANSWER C
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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
Date: September 10th, 2020
The Heckscher-Ohlin model basically states that countries will specialize and trade those goods in which they have comparative advantage. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If two countries engage in Free Trade following the principles of comparative advantage, then A) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one country will equal those in the other country. B) both relative prices and MRTs will become equal in both countries. C) relative prices but not MRTs will […]
Date: September 10th, 2020
Latin America A) is significantly smaller than the NAFTA market in terms of population. B) has a smaller population, but a larger GDP than the NAFTA market. C) has a larger population than the NAFTA market. D) is similar in population to the NAFTA market. ANSWER C
Date: September 10th, 2020
A monopoly firm engaged in international trade will A) equate marginal costs with marginal revenues in both domestic and foreign markets. B) equate average to local costs. C) equate marginal costs with foreign marginal revenues. D) equate marginal costs with the highest price the market will bear. E) equate marginal costs with the relative world […]
Date: September 10th, 2020
Between 1972 and 1999, the majority of loans to HIPC countries went to regimes considered “not free,” and between 1985 and 1995, to places that were considered “corrupt” by international organizations. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Brazil’s export record in 1999 illustrated the principle that A) a large country will tend to have few exports. B) a small country will tend to have a high export ratio. C) protectionist policies tend to discourage exports. D) export-promoting policies do not tend to work. E) import substitution policies helped the Brazilian economy. […]
Date: September 10th, 2020
