The relocation of service industry functions to another country is called what? What will be an ideal response? ANSWER Offshoring
Date: September 10th, 2020
Emigration is when people leave a country because of supply push factors. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If the factor price equalization theorem is true then, eventually, U.S. wages will fall to the level found today in the least developed countries of the world. Indicate whether the statement is true or false ANSWER FALSE Explanation: Technology differences exist, negating HO predictions.
Date: September 10th, 2020
A nation engaging in trade according to the Ricardian model will find its consumption bundle A) inside its production possibilities frontier. B) on its production possibilities frontier. C) outside its production possibilities frontier. D) inside its trade-partner’s production possibilities frontier. E) on its trade-partner’s production possibilities frontier. ANSWER C
Date: September 10th, 2020
Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter? What will be an ideal response? ANSWER Imperfections in the labor market.
Date: September 10th, 2020
How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.50 dollars per British pound? A) 10 British pounds B) 20 British pounds C) 30 British pounds D) 35 British pounds E) 25 British pounds ANSWER C
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
