From 1900 to 1960, Latin America’s real GDP grew A) slower than Europe, Asia, and the U.S. B) as fast or faster than Europe, Asia, and the U.S. C) faster than Europe and the U.S. but slower than Asia. D) faster than Asia, but slower than Europe and the U.S. ANSWER B
Date: September 10th, 2020
Comparative advantage cannot account for a significant portion of world trade. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When the WTO met in Seattle to initiate a further move towards free international trade, thousands of activists met A) in order to promote the WTO’s goals of “Trade-not Aid.” B) in order to laud the WTO policy orientation which would bust local monopolies and therefore help ordinary relatively poor consumers everywhere. C) in order […]
Date: September 10th, 2020
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
With floating exchange rates, BOP equilibrium is restored by A) trade restrictions. B) earnings from foreign investments. C) exchange rate changes. D) All of the above. ANSWER C
Date: September 10th, 2020
If the world terms of trade equal those of country H, then A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. […]
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
