Exam 6: The Standard Trade Model

If Slovenia were a large country in world trade,then if it instituted a large set of subsidies for its exports,this must

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

Describe the nature of trade between two countries based on intertemporal comparative advantage.

-Refer to above figure.Now,suppose that the relative price of A is actually not higher than Albania's autarkic level of 1,but quite the opposite (e.g.,PA/PB = 0.5).Would Albania still be able to gain from trade? If so,where would be its production point? Given the information in this question,where is Albania's comparative advantage?

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

It may be argued that theoretically,international capital movements

If Slovenia were a large country in world trade,then if it instituted a large set of subsidies for its exports,this must

The intertemporal tradeoff between present and future consumption is measured by the

An increase in the real interest rate,all other things held constant,will cause a country's ________ to ________.

An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country.

Rapidly growing developing countries tend to be borrowers on the international capital markets.From this information we may surmise that they have a comparative advantage in

What is intertemporal comparative advantage?

-Suppose Albania is exporting product B,and experienced economic growth biased in favor of product B as seen in the figure above.We are also told that Albania's new consumption point is at point d.Would you still consider the economic growth,which took place biased in favor of B? If Albania were a large country how would this growth affect its terms of trade?

An export subsidy will cause the terms of trade of the ________ country to ________ and will ________ the country.

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

-Suppose,as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew,and is now represented by the rightmost production possibility frontier in the figure above.If its point of production with trade was point b,would you consider this growth to be export-biased or import biased? If Albania were a large country with respect to the world trade of A and B,how would this growth affect Albania's terms of trade? Its real income? What if Albania were a small country?

The intertemporal budget constraint is defined as:

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

If the U.S.(a large country)imposes a tariff on its imported good,this will tend to

-Refer to the figure above,which shows a country's possible production possibility frontiers and indifference curves.If the country is producing at ________,then moving to ________ will cause utility to ________.