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
According to your text, what is the major long-run issue facing the European Union? What will be an ideal response? ANSWER An aging population
Date: September 10th, 2020
When a country’s currency depreciates A) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are more expensive. B) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are cheaper. C) foreigners find that its exports are cheaper; however, domestic residents […]
Date: September 10th, 2020
Internal balance describes A) equilibrium in the goods market. B) a desired level of trade or capital flows. C) where the IS and BP curve intersect. D) a domestic rate of growth consistent with a low unemployment rate. ANSWER D
Date: September 10th, 2020
A monopoly firm will maximize profits by producing where A) marginal revenue is the same in domestic and foreign markets. B) prices are the same in domestic and foreign markets. C) marginal revenue is higher in foreign markets. D) marginal revenue is higher in the domestic market. E) total revenue from domestic and foreign sales […]
Date: September 10th, 2020
Which of the following statements is the MOST accurate? The law of one price states A) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency. B) in competitive markets […]
Date: September 10th, 2020
Comparative advantage has mixed results when it comes to predicting a country’s trade patterns. Which of the following is FALSE? A) There are many potential products an economy might export that use the same comparative advantage. B) A large share of international trade is not based on comparative advantage. C) Comparative advantage has proven completely […]
Date: September 10th, 2020
Under Purchasing Power Parity A) E$/E = PUS/PE. B) E$/E = PE/PES. C) E$/E = PUS + PE. D) E$/E = PUS – PE. E) E$/P = PUS/PE. ANSWER A
Date: September 10th, 2020
Wage inequality has been on the rise in virtually all high-income industrial economies since the 1970s. The causes are probably numerous, but the leading explanation for the greatest share of the increase in inequality is A) the growth of trade with developing countries. B) the growth of trade with other high income industrial countries. C) […]
Date: September 10th, 2020
