Question 1

If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its imports, this would

Accepted Answer

A)  decrease its marginal propensity to consume. 
B)  deteriorate its terms of trade. 
C)  increase its exports. 
D)  have no effect on its terms of trade. 
E)  improve its terms of trade. 
A)  decrease its marginal propensity to consume. 
B)  deteriorate its terms of trade. 
C)  increase its exports. 
D)  have no effect on its terms of trade. 
E)  improve its terms of trade.

Question 2

The price of ________ consumption in terms of ________ consumption is ________.

Accepted Answer

A)  future; current; r 
B)  present; future; r 
C)  future; current; 1 + r 
D)  future; current; 1/(1 + r) 
E)  present; future; 1/(1 + r) 
A)  future; current; r 
B)  present; future; r 
C)  future; current; 1 + r 
D)  future; current; 1/(1 + r) 
E)  present; future; 1/(1 + r)

Question 3

An import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.

Accepted Answer

A)  exports; decrease; exports; increase 
B)  imports; increase; imports; decrease 
C)  exports; increase; exports; decrease 
D)  imports; decrease; imports; increase 
E)  exports; increase; imports; decrease 
A)  exports; decrease; exports; increase 
B)  imports; increase; imports; decrease 
C)  exports; increase; exports; decrease 
D)  imports; decrease; imports; increase 
E)  exports; increase; imports; decrease

Question 4

If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then

Accepted Answer

A)  the country would import more cloth. 
B)  the food exporter will increase the quantity of food exported. 
C)  the cloth exporter will increase the quantity of cloth produced. 
D)  the cloth exporter will increase the quantity of cloth exported. 
E)  the cloth exporter will decrease the quantity of cloth exported. 
A)  the country would import more cloth. 
B)  the food exporter will increase the quantity of food exported. 
C)  the cloth exporter will increase the quantity of cloth produced. 
D)  the cloth exporter will increase the quantity of cloth exported. 
E)  the cloth exporter will decrease the quantity of cloth exported.

Question 5

The intertemporal budget constraint is defined as:

Accepted Answer

A)  V = DP + DF/(1 + r) 
B)  DP + DF(1 + r) = QP + QF(1 + r) 
C)  DP + DF/(1 + r) = QP + QF/(1 + r) 
D)  DF + DP/(1 + r) = QF + QP/(1 + r) 
E)  V = QP + QF/(1 + r) 
A)  V = DP + DF/(1 + r) 
B)  DP + DF(1 + r) = QP + QF(1 + r) 
C)  DP + DF/(1 + r) = QP + QF/(1 + r) 
D)  DF + DP/(1 + r) = QF + QP/(1 + r) 
E)  V = QP + QF/(1 + r)

If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its imports, this would

The price of consumption in terms of consumption is .

An import tariff will cause the relative demand for to and the relative supply for to .

If the ratio of price of cloth (P_C) divided by the price of food (P_F) increases in the international marketplace, then

The intertemporal budget constraint is defined as:

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

Exam 6: The Standard Trade Model

If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its imports, this would

The price of ________ consumption in terms of ________ consumption is ________.

An import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.

If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then

The intertemporal budget constraint is defined as:

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

The price of consumption in terms of consumption is .

An import tariff will cause the relative demand for to and the relative supply for to .

If the ratio of price of cloth (P_C) divided by the price of food (P_F) increases in the international marketplace, then