Exam 14: Macroeconomics and International Trade

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good. -Refer to the table above.The opportunity cost of producing 1 ton of rice in Country Y is ________.

Technology transfer is always the main goal of foreign direct investment.

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year. -Refer to the scenario above.Which of the following statements is true in this case?

A current account surplus occurs when a country's ________,all else equal.

Montesia specializes in the production of heavy machinery.It exports machinery to the rest of the world and imports oil from Gulf countries.Based on this information,we can conclude that Montesia is a(n)________ economy.

Everything else equal,if a country has exports of $15 billion and imports of $16 billion,it follows that the country has a ________.

International trade is driven by ________.

The table below shows the GDP per capita of four different countries: -Refer to the table above.Which country is likely to have the lowest percentage of children between the ages of 7 and 14 who are working?

What are the gains from specialization?

A country imported goods and services worth $16 billion and exported goods and services worth $15.7 billion during a particular year.This implies that the country experienced a ________ during that year.

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day. -Refer to the scenario above.Which of the following is true in this case?

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year. -Refer to the scenario above.Which of the following statements is true in this case?

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good. -Refer to the table above.The opportunity cost of producing 1 ton of rice in Country X is ________.

Foreign direct investment is a major conduit for technology transfer.

Market prices will adjust so that individuals choose occupations in which they have ________.

International trade enables an economy to ________.

Which country receives the most foreign direct investment in the world?

The accounting system requires that the current account and the financial account sum to ________.

The U.S.government spent $5 million providing food and shelter to earthquake victims in Japan.This is an example of a(n)________.

International trade has evolved in such ways that not only goods,but also services are traded across borders.The textbook mentions arrays of sophisticated services that can now be traded internationally.What are some of these services than can be traded nowadays internationally?