Question 1

Supporting the price of a commodity by buying it when its price is low is:

Accepted Answer

A)  a buffer stock 
B)  a purchase contract 
C)  an export control 
D)  a marketing board 
A)  a buffer stock 
B)  a purchase contract 
C)  an export control 
D)  a marketing board

Question 2

What is the difference between import substitution and export orientation?

Accepted Answer

Import substitution is a strategy of sel

Question 3

If the prices of a nation's exports and imports both rise,the nation's commodity terms of trade may:

Accepted Answer

A)  improve 
B)  deteriorate 
C)  remain unchanged 
D)  any of the above 
A)  improve 
B)  deteriorate 
C)  remain unchanged 
D)  any of the above

Question 4

If the income elasticity of a good is positive but less than 1,as income increases

Accepted Answer

A)  demand for the good will decrease. 
B)  demand for the good will increase, but less than proportionately to the income increase. 
C)  demand for the good will increase, but more than proportionately to the income increase. 
D)  demand will not change. 
A)  demand for the good will decrease. 
B)  demand for the good will increase, but less than proportionately to the income increase. 
C)  demand for the good will increase, but more than proportionately to the income increase. 
D)  demand will not change.

Question 5

During the 1950's,1960's and 1970's the predominant growth strategy for developing nations was one of

Accepted Answer

A)  import substitution 
B)  export orientation 
C)  communism 
D)  none of the above 
A)  import substitution 
B)  export orientation 
C)  communism 
D)  none of the above

Question 6

Trade cannot be an engine of growth for today's developing nations because:

Accepted Answer

A)  the income elasticity for many of their exports is less than 1 
B)  there are many substitutes for their goods. 
C)  technical advances have increased the the raw-material content of many products 
D)  there are too many trade restrictions. 
A)  the income elasticity for many of their exports is less than 1 
B)  there are many substitutes for their goods. 
C)  technical advances have increased the the raw-material content of many products 
D)  there are too many trade restrictions.

Question 7

Which of the following is false with respect to traditional trade theory?

Accepted Answer

A)  it can incorporate changes in factor endowments and technology 
B)  it leads to the best allocation of resources at any point in time 
C)  it is a dynamic theory 
D)  it is based on comparative advantage 
A)  it can incorporate changes in factor endowments and technology 
B)  it leads to the best allocation of resources at any point in time 
C)  it is a dynamic theory 
D)  it is based on comparative advantage

Question 8

According to Nurkse,international trade was an engine of growth for:

Accepted Answer

A)  the regions of recent settlements during the 19th century 
B)  regions of recent settlements during the 20th century 
C)  developed nations during the 19th century 
D)  developed nations during the 20th century 
A)  the regions of recent settlements during the 19th century 
B)  regions of recent settlements during the 20th century 
C)  developed nations during the 19th century 
D)  developed nations during the 20th century

Question 9

What is the advantage of a policy of import substitution?

Accepted Answer

A)  setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation's imports of the commodity 
B)  It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exports 
C)  foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations 
D)  all of the above. 
A)  setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation's imports of the commodity 
B)  It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exports 
C)  foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations 
D)  all of the above.

Question 10

The following is not an example of an international commodity agreement.

Accepted Answer

A)  marketing boards 
B)  buffer stocks 
C)  export controls 
D)  purchase contracts 
A)  marketing boards 
B)  buffer stocks 
C)  export controls 
D)  purchase contracts

Supporting the price of a commodity by buying it when its price is low is:

What is the difference between import substitution and export orientation?

If the prices of a nation's exports and imports both rise,the nation's commodity terms of trade may:

If the income elasticity of a good is positive but less than 1,as income increases

During the 1950's,1960's and 1970's the predominant growth strategy for developing nations was one of

Trade cannot be an engine of growth for today's developing nations because:

Which of the following is false with respect to traditional trade theory?

According to Nurkse,international trade was an engine of growth for:

What is the advantage of a policy of import substitution?

The following is not an example of an international commodity agreement.

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

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

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

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 Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

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 Answers to Selected Problems on Web

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Exam 11: International Trade and Economic Development

Supporting the price of a commodity by buying it when its price is low is:

What is the difference between import substitution and export orientation?

If the prices of a nation's exports and imports both rise,the nation's commodity terms of trade may:

If the income elasticity of a good is positive but less than 1,as income increases

During the 1950's,1960's and 1970's the predominant growth strategy for developing nations was one of

Trade cannot be an engine of growth for today's developing nations because:

Which of the following is false with respect to traditional trade theory?

According to Nurkse,international trade was an engine of growth for:

What is the advantage of a policy of import substitution?

The following is not an example of an international commodity agreement.

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

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

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

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 Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

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 Answers to Selected Problems on Web

Filters