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
There are debt relief programs currently available for highly indebted poor countries. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, 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. […]
Date: September 10th, 2020
As populations age, public spending tends to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If General Motors imports parts from its plants in Canada and Mexico for finished trucks that it will sell across the NAFTA region, what type of trade does this represent? What will be an ideal response? ANSWER Intrafirm
Date: September 10th, 2020
Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Describe the criteria for membership in the European Union. Given the criteria, what are some of the major challenges with expanding the EU eastward? What are the potential problems of Turkey joining the EU? What will be an ideal response? ANSWER The criteria for membership include that the nation must be a stable, functioning […]
Date: September 10th, 2020
Spencer and Brander’s model highlights the existence of A) aircraft industries. B) excess returns present in highly competitive markets. C) excess returns, or rents, available in non-competitive markets. D) the futility of government bureaucrats’ attempts to build an airplane. E) natural advantages in foreign technology firms. ANSWER C
Date: September 10th, 2020
According the Stolper-Samuelson theorem, the scarce factor in any given country should oppose international trade by that country. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
