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
The fact that 10 additional nations joined the European Union in May 2004 is an example of deepening. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause A) income to rise, interest rates to fall, and the domestic currency to depreciate. B) income to fall, interest rates to rise, and the domestic currency to appreciate. C) income to rise, interest rates to remain unchanged, and the […]
Date: September 10th, 2020
With fixed exchange rates, perfect asset substitutability, and perfect capital mobility A) the LM curve is horizontal. B) the LM curve is vertical. C) the BP curve is horizontal. D) the BP curve is vertical. ANSWER C
Date: September 10th, 2020
Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare? What will be an ideal response? ANSWER Import-substitution giving protection to manufacturing.
Date: September 10th, 2020
As a result of trade between two countries which are of completely different economic sizes, specialization in the Ricardian 2X2 model tends to A) be incomplete in both countries. B) be complete in both countries. C) be complete in the small country but incomplete in the large country. D) be complete in the large country […]
Date: September 10th, 2020
Forces inside a nation that cause people to think about leaving that nation are called what in migration theory? What will be an ideal response? ANSWER Supply-push factors
Date: September 10th, 2020
