A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The O in OLI theory stands for ownership, and the asset owned can be tangible or intangible. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If domestic savings is less than domestic investment, then A) a trade deficit occurs. B) the government runs a budget deficit. C) there will be a negative foreign investment. D) a trade surplus must result. E) Both A and C. ANSWER E
Date: September 10th, 2020
Typically, the most important determinant of private investment in an economy is A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the outflow of private investment. E) the amount of domestic savings. ANSWER E
Date: September 10th, 2020
It is possible that trade based on external scale economies may leave a country worse off than it would have been without trade. Explain how this could happen. What will be an ideal response? ANSWER One answer is that the terms of trade effects may dominate any other factors.
Date: September 10th, 2020
The simultaneous export and import of widgets by the United States is an example of A) intra-industry trade. B) increasing returns to scale. C) imperfect competition. D) inter-industry trade. E) the effect of a monopoly on international trade. ANSWER A
Date: September 10th, 2020
Economic growth could make a country worse off. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When did the European Union become a common market? What will be an ideal response? ANSWER 1-Jan-93
Date: September 10th, 2020
The earliest statement of the principle of comparative advantage is associated with A) David Hume. B) David Ricardo. C) Adam Smith. D) Eli Heckscher. E) Bertil Ohlin. ANSWER B
Date: September 10th, 2020
When a country both exports and imports a type of commodity, the country is engaged in A) intra-industry trade. B) increasing returns to scale. C) imperfect competition. D) inter-industry trade. E) an attempt to monopolize the relevant industry. ANSWER A
Date: September 10th, 2020
