Criticisms of the Brander-Spencer model include all EXCEPT which of the following? A) the problem of insufficient information B) the problem of likely foreign retaliation C) the problem of harm to interests of consumers D) the problem of adverse effects of trade policy politics E) the problem of simultaneously causing harm to other industries […]
Which EU institution has played a significant role is responding to the economic crisis that began in 2007? What will be an ideal response? ANSWER The European Central Bank
Tastes are assumed to be identical across countries to rule out differences in demand determining the direction of trade. Indicate whether the statement is true or false ANSWER TRUE
A point to the left of the LM curve would represent a situation in which A) money demand is greater than money supply. B) money supply is greater than money demand. C) money demand is greater than goods demand. D) money demand is less than goods demand. ANSWER B
What are the factors that have been identified that affect a migration decision? Give examples of each. What will be an ideal response? ANSWER Supply push factors are forces inside a country that cause people to think about leaving, such as poor economic opportunities or instability. Demand pull factors are forces that pull migrants […]
Your text identifies all of the following as reasons why unsustainable debt may occur EXCEPT A) when countries are dependent on one or two key export commodities, and there is a sudden drop in the price of those commodities. B) when natural disasters occur. C) when civil conflicts are resolved and a peace dividend occurs. […]
The United States, as it began its long and successful growth in the early 19th century, consciously promoted domestic production through such activities as tariffs, Clay’s American System, and many direct subsidies to railroads, canal companies, farmers (free land) etc. Today we view this blatant example of large scale and extensive import-substitution industrialization as having […]
Japan’s protection of its semiconductor (RAM) producers is today seen as an object lesson in A) how strategic planning may backfire and cause a large waste of resources. B) how externalities may be successfully exploited by protectionist policies. C) how excess returns may be successfully exploited by protectionist policies. D) how government intervention may create […]
The first and biggest problem the EU faces in its expansion to the east is A) the reform of its agricultural subsidy programs. B) the lack of democracy in the countries that are most likely to become members. C) the unwillingness of the new members to adopt EU rules. D) the lack of market economies […]
In a two product two country world, international trade can lead to increases in A) consumer welfare only if output of both products is increased. B) output of both products and consumer welfare in both countries. C) total production of both products but not consumer welfare in both countries. D) consumer welfare in both countries […]
