Which of the following is not a necessary condition for a flat BP curve? A) perfect capital mobility B) perfect asset substitutability C) fixed exchange rates D) floating exchanges rates E) Both C and D ANSWER E
Date: September 10th, 2020
General equilibrium considerations lead to the realization that import-substituting policies have the effect of A) discouraging exports. B) encouraging exports. C) encouraging an efficient use of a country’s resources. D) generating large tariff revenues for the government. E) creating competitive manufacturing sectors. ANSWER A
Date: September 10th, 2020
A current account surplus implies that A) the country is a net lender with the rest of the world. B) the country is running a net capital account surplus. C) foreign investment in domestic securities is at very low levels. D) All of the above. ANSWER A
Date: September 10th, 2020
In effect, the U.S. does subsidize high-tech firms by subsidizing R&D. This is done through A) the budget of the Department of Education. B) systematic protection through the levying of tariffs. C) systematic protection through the establishment of NTBs. D) relatively accelerated “depreciation” of R&D investment in the Federal tax codes. E) subsidies for high-tech […]
Date: September 10th, 2020
Ultimate solutions to the problems of unsustainable debt must take into account the incentives for lenders to make loans. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
There is no possibility of further widening of the European Union. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the A) services account. B) merchandise account. C) transfers account. D) capital account. ANSWER C
Date: September 10th, 2020
According to the factor price equalization theorem, free international trade will result in wages equating rents worldwide. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________. A) increase; average price; decrease B) increase; average price; increase C) increase; average cost; decrease D) decrease; markup; decrease E) increase; marginal cost; decrease ANSWER A
Date: September 10th, 2020
Intra-industry trade is most common in the trade patterns of A) the industrial countries of Western Europe. B) the developing countries of Asia and Africa. C) raw material producers. D) China with the rest of the world. E) labor-intensive products. ANSWER A
Date: September 10th, 2020
