Adopting the Single European Act had broad popular support; the Treaty on European Union was more controversial. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following is true about the distribution of income in the U.S. in the last three decades? A) For much of this period real wages paid to college graduates have risen significantly. B) Real wages paid to blue-collar workers have grown only slightly. C) There has been a shift in the distribution in […]
Date: September 10th, 2020
The existence of positive externalities due to the impossibility of full appropriability A) supports the conclusions of the Heckscher-Ohlin model. B) rejects the usefulness of government protectionism. C) supports the concept that the government should support only high-tech industries. D) provides support for government protectionism. E) supports arguments for free trade. ANSWER D
Date: September 10th, 2020
Immigration tends to lower the income of all factors of production. True or false. Indicate whether the statement is true or false ANSWER False. Immigration tends to lower the wages of workers who substitute directly for the immigrants. Non-competing factors would tend to gain.
Date: September 10th, 2020
The movement of production to affiliate firms outside of the country is known as outsourcing. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Write an essay that compares and contrasts primary-export-led development policies with import-substitution policies. What will be an ideal response? ANSWER Primary-export-led development policies are aimed at encouraging the exports of natural comparative advantage primary products. The hope is that these exports will generate substantial linkage effects that will bring about general economic development. Potential […]
Date: September 10th, 2020
Given the information in the table above, if wages were to double in Home, then Home should A) export cloth. B) export widgets. C) export both and import nothing. D) export and import nothing. E) export widgets and import cloth. ANSWER A
Date: September 10th, 2020
Recent evidence regarding the exchange-rate pass-through effect in the U.S. reflects a declining trend. How can this be explained? What will be an ideal response? ANSWER There is evidence that the exchange-rate pass-through effect to import prices has been declining in developing economies, particularly for the U.S. One explanation offered for this trend is […]
Date: September 10th, 2020
Explain the elasticities and absorption approaches to the BOT. What is the most notable shortcoming of these approaches? What will be an ideal response? ANSWER The elasticities approach analyzes the effect of devaluation on the trade balance based on elasticities of supply and demand for foreign exchange and international trade. The absorption approach views […]
Date: September 10th, 2020
Briefly describe the factors that contributed to the U.S. Current Account deficits of the 1990s. What will be an ideal response? ANSWER Rapid U.S. economic growth raised income and import demand; economic growth was low or negative for U.S. trading partners, depressing export demand.
Date: September 10th, 2020
