Question 1

Community indifference curves:

Accepted Answer

A) are negatively sloped 
B) are convex to the origin 
C) should not cross 
D) all of the above 
A) are negatively sloped 
B) are convex to the origin 
C) should not cross 
D) all of the above

Question 2

In 2010,international trade statistics showed that the United States has a comparative advantage in which of the following goods?

Accepted Answer

A) Textiles 
B) Automobiles 
C) Chemicals 
D) Agricultural goods 
A) Textiles 
B) Automobiles 
C) Chemicals 
D) Agricultural goods

Question 3

If nations have identical production possibilities frontiers it is possible for them to experience gains from trade if

Accepted Answer

A) they have the same tastes and preference 
B) they have different tastes and preferences 
C) they have different natural resources 
D) they have constant opportunity costs 
A) they have the same tastes and preference 
B) they have different tastes and preferences 
C) they have different natural resources 
D) they have constant opportunity costs

Question 4

If the internal Px/Py is lower in nation 1 than in nation 2 without trade:

Accepted Answer

A) nation 1 has a comparative advantage in commodity Y 
B) nation 2 has a comparative advantage in commodity X 
C) nation 2 has a comparative advantage in commodity Y 
D) none of the above 
A) nation 1 has a comparative advantage in commodity Y 
B) nation 2 has a comparative advantage in commodity X 
C) nation 2 has a comparative advantage in commodity Y 
D) none of the above

Question 5

Nation 1's share of the gains from trade will be greater:

Accepted Answer

A) the greater is nation 1's demand for nation 2's exports 
B) the closer Px/Py with trade settles to nation 2's pretrade Px/Py 
C) the weaker is nation 2's demand for nation 1's exports 
D) the closer Px/Py with trade settles to nation 1's pretrade Px/Py 
A) the greater is nation 1's demand for nation 2's exports 
B) the closer Px/Py with trade settles to nation 2's pretrade Px/Py 
C) the weaker is nation 2's demand for nation 1's exports 
D) the closer Px/Py with trade settles to nation 1's pretrade Px/Py

Question 6

The marginal rate of transformation (MRT)of X for Y refers to:

Accepted Answer

A) the amount of Y that a nation must give up to produce each additional unit of X 
B) the opportunity cost of X 
C) the absolute slope of the production frontier at the point of production 
D) all of the above 
A) the amount of Y that a nation must give up to produce each additional unit of X 
B) the opportunity cost of X 
C) the absolute slope of the production frontier at the point of production 
D) all of the above

Question 7

Which of the following is not true for a nation that is in equilibrium in isolation?

Accepted Answer

A) It consumes inside its production frontier 
B) it reaches the highest indifference curve possible with its production frontier 
C) the indifference curve is tangent to the nation's production frontier 
D) MRT of X for Y equals MRS of X for Y,and they are equal to Px/Py 
A) It consumes inside its production frontier 
B) it reaches the highest indifference curve possible with its production frontier 
C) the indifference curve is tangent to the nation's production frontier 
D) MRT of X for Y equals MRS of X for Y,and they are equal to Px/Py

Question 8

Mutually beneficial trade cannot occur if production frontiers are:

Accepted Answer

A) equal but tastes are not 
B) different but tastes are the same 
C) different and tastes are also different 
D) the same and tastes are also the same. 
A) equal but tastes are not 
B) different but tastes are the same 
C) different and tastes are also different 
D) the same and tastes are also the same.

Question 9

Which of the following is a correct statement about deindustrialization in the United States?

Accepted Answer

A) Most job loss in manufacturing has been due to changes in productivity. 
B) Most job loss in manufacturing has been due to competition from other countries. 
C) Most job loss in manufacturing has been due to changes in the legal structure of trade. 
D) Most job loss in manufacturing has been due to unfair trade practices. 
A) Most job loss in manufacturing has been due to changes in productivity. 
B) Most job loss in manufacturing has been due to competition from other countries. 
C) Most job loss in manufacturing has been due to changes in the legal structure of trade. 
D) Most job loss in manufacturing has been due to unfair trade practices.

Question 10

Which of the following statements is true with respect to the MRS of X for Y?

Accepted Answer

A) It is given by the absolute slope of the indifference curve 
B) declines as the nation moves down an indifference curve 
C) rises as the nation moves up an indifference curve 
D) all of the above 
A) It is given by the absolute slope of the indifference curve 
B) declines as the nation moves down an indifference curve 
C) rises as the nation moves up an indifference curve 
D) all of the above

Community indifference curves:

In 2010,international trade statistics showed that the United States has a comparative advantage in which of the following goods?

If nations have identical production possibilities frontiers it is possible for them to experience gains from trade if

If the internal Px/Py is lower in nation 1 than in nation 2 without trade:

Nation 1's share of the gains from trade will be greater:

The marginal rate of transformation (MRT)of X for Y refers to:

Which of the following is not true for a nation that is in equilibrium in isolation?

Mutually beneficial trade cannot occur if production frontiers are:

Which of the following is a correct statement about deindustrialization in the United States?

Which of the following statements is true with respect to the MRS of X for Y?

Introduction

The Law of Comparative Advantage

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscher-Ohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange

The Income Adjustment Mechanism and Synthesis of Automatic

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past,present,and Future

Filters

Exam 3: The Standard Theory of International Trade

Community indifference curves:

In 2010,international trade statistics showed that the United States has a comparative advantage in which of the following goods?

If nations have identical production possibilities frontiers it is possible for them to experience gains from trade if

If the internal Px/Py is lower in nation 1 than in nation 2 without trade:

Nation 1's share of the gains from trade will be greater:

The marginal rate of transformation (MRT)of X for Y refers to:

Which of the following is not true for a nation that is in equilibrium in isolation?

Mutually beneficial trade cannot occur if production frontiers are:

Which of the following is a correct statement about deindustrialization in the United States?

Which of the following statements is true with respect to the MRS of X for Y?

Introduction

The Law of Comparative Advantage

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscher-Ohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange

The Income Adjustment Mechanism and Synthesis of Automatic

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past,present,and Future

Filters