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
The European Union membership criteria includes all of the following EXCEPT A) the country must participate in free trade with all of its goods and services. B) the country must follow market-based economics. C) the country must formally adopt the EU-wide rules such as technical standards, environmental inspections, banking supervision, etc. D) the country must […]
Date: September 10th, 2020
The assumption that the two goods are made using different factor intensities raises the likelihood of incomplete specialization after trade begins. Indicate whether the statement is true or false ANSWER TRUE Explanation: It introduces increasing opportunity costs into the model.
Date: September 10th, 2020
In the BOP, travel and tourism are included in A) unilateral transfers. B) the capital account. C) the merchandise account. D) the services account. ANSWER D
Date: September 10th, 2020
Under oligopoly, firms’ pricing policies are ________ and, under monopolistic competition, they are ________. A) interdependent; independent B) independent; interdependent C) cooperative; uncooperative D) uncooperative; cooperative E) profit maximizing; revenue maximizing ANSWER A
Date: September 10th, 2020
Refer to above figure. If manufacturing labor were to increase to OmL2, how much value would the economy as a whole gain? What will be an ideal response? ANSWER The triangle ABC.
Date: September 10th, 2020
What does research thus far suggest about job loss and offshoring? What will be an ideal response? ANSWER That outsourcing can be complementary and not just a substitute for domestic labor
Date: September 10th, 2020
As a result of trade, specialization in the Ricardian model tends to be A) complete with constant costs and with increasing costs. B) complete with constant costs and incomplete with increasing costs. C) incomplete with constant costs and complete with increasing costs. D) incomplete with constant costs and incomplete with increasing costs. E) dependent on […]
Date: September 10th, 2020
