How is offshoring of services different from past trade patterns? What will be an ideal response? ANSWER Services were consumed where they were produced and not traded.
Date: September 10th, 2020
It is argued that high-tech industries typically generate new technologies but cannot fully appropriate the commercial benefits associated with their inventions or discoveries. If this is true then in order to maximize a country’s real income, the government should A) tax the high-tech firms. B) subsidize the high-tech firms. C) protect the high-tech firms. D) […]
Date: September 10th, 2020
One of the problems with excessive debt is that A) it worsens the central government’s budget position by adding large debt service payments to other budget items. B) it reduces the quantity of resources available to invest in economic development. C) if debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social […]
Date: September 10th, 2020
If firms in an industry are generating knowledge that other firms can use without paying for it, this industry is characterized by A) social costs that exceed private costs. B) social benefits that exceed private benefits. C) social costs that exceed social benefits. D) private benefits that exceed social benefits. E) social benefits that undermine […]
Date: September 10th, 2020
Debit entries on the Balance of Payments are the entries that would A) mean a loss of foreign exchange. B) bring foreign exchange into the country. C) indicate a surplus exists. D) exist at the bottom line after all accounts are totaled. ANSWER A
Date: September 10th, 2020
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.50 dollars per one British pound? A) 50 dollars B) 60 dollars C) 70 dollars D) 80 dollars E) 75 dollars ANSWER E
Date: September 10th, 2020
Offshoring required which types of advances? What will be an ideal response? ANSWER Advances in communications technology, such as fax machines, video conferencing, the internet, and in general, lower prices for long distance communication
Date: September 10th, 2020
Which of the following is FALSE about the Highly Indebted Poor Countries initiative? A) Most of the countries included are in sub-Saharan Africa. B) Countries qualify for debt relief partly based on their level of poverty. C) Countries do not have to have established a past track record of economic reform in order to qualify […]
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
