Question 1

Normative analysis involves value judgments.

Accepted Answer

A) True 
 B)False

Question 2

In autarky equilibrium,

Accepted Answer

A) production equals consumption. 
B) exports equal imports. 
C) there is no international trade. 
D) All of the above. 
A) production equals consumption. 
B) exports equal imports. 
C) there is no international trade. 
D) All of the above.

Question 3

-Refer to the figure above.Which of the following is true?

Accepted Answer

A) Demand plays no role in price setting in this model. 
B) Given autarky prices, GDP is maximized by producing at point E. 
C) So long as the country is on its production possibility frontier, GDP is maximized. 
D) Both A and C are true. 
A) Demand plays no role in price setting in this model. 
B) Given autarky prices, GDP is maximized by producing at point E. 
C) So long as the country is on its production possibility frontier, GDP is maximized. 
D) Both A and C are true.

Question 4

-Refer to the figure above.The relative price of T (in terms of S. is

Accepted Answer

A) 2. 
B) 1/2. 
C) 500. 
D) 1000. 
A) 2. 
B) 1/2. 
C) 500. 
D) 1000.

Question 5

-Refer to the figure above.Which of the following is true?

Accepted Answer

A) The relative price of S is higher at G than at D. 
B) The relative price of T is higher at C than at F. 
C) A move from C to D would raise community satisfaction. 
D) All of the above are true. 
A) The relative price of S is higher at G than at D. 
B) The relative price of T is higher at C than at F. 
C) A move from C to D would raise community satisfaction. 
D) All of the above are true.

Question 6

If the autarky price of S (in terms ofT)were lower in country A than in country B,

Accepted Answer

A) A has a comparative advantage in S. 
B) B has a comparative advantage in T. 
C) A has a comparative disadvantage in T. 
D) All of the above. 
A) A has a comparative advantage in S. 
B) B has a comparative advantage in T. 
C) A has a comparative disadvantage in T. 
D) All of the above.

Question 7

Using community indifference curves to reflect tastes of the community

Accepted Answer

A) is a simple extension of indifference curve analysis because people are so different. 
B) cannot usually be done because the community may have inconsistent tastes even though its residents do not. 
C) is a simple extension of indifference curve analysis if people are all alike. 
D) Both B and C. 
A) is a simple extension of indifference curve analysis because people are so different. 
B) cannot usually be done because the community may have inconsistent tastes even though its residents do not. 
C) is a simple extension of indifference curve analysis if people are all alike. 
D) Both B and C.

Question 8

-Refer to the figure above.In autarky equilibrium,the relative price is given by the slope of the production possibility frontier at point

Accepted Answer

A) D. 
B) E. 
C) F. 
D) Can't answer without more information. 
A) D. 
B) E. 
C) F. 
D) Can't answer without more information.

Normative analysis involves value judgments.

In autarky equilibrium,

-Refer to the figure above.Which of the following is true?

-Refer to the figure above.The relative price of T (in terms of S. is

-Refer to the figure above.Which of the following is true?

If the autarky price of S (in terms ofT)were lower in country A than in country B,

Using community indifference curves to reflect tastes of the community

-Refer to the figure above.In autarky equilibrium,the relative price is given by the slope of the production possibility frontier at point

An Introduction to International Trade

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 2: Tools of Analysis for International Trade Models

Normative analysis involves value judgments.

In autarky equilibrium,

-Refer to the figure above.Which of the following is true?

-Refer to the figure above.The relative price of T (in terms of S. is

-Refer to the figure above.Which of the following is true?

If the autarky price of S (in terms ofT)were lower in country A than in country B,

Using community indifference curves to reflect tastes of the community

-Refer to the figure above.In autarky equilibrium,the relative price is given by the slope of the production possibility frontier at point

An Introduction to International Trade

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters