Question 1

For most developing countries:

Accepted Answer

A)  Productivity is high among domestic workers 
B)  Population-growth and illiteracy rates are low 
C)  Saving and investment levels are high 
D)  Agricultural goods and raw materials constitute much of domestic output 
A)  Productivity is high among domestic workers 
B)  Population-growth and illiteracy rates are low 
C)  Saving and investment levels are high 
D)  Agricultural goods and raw materials constitute much of domestic output D

Question 2

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Accepted Answer

A)  Is inelastic with respect to price changes 
B)  Is elastic with respect to price changes 
C)  Will increase in response to a price increase 
D)  Will not change in response to a price change 
A)  Is inelastic with respect to price changes 
B)  Is elastic with respect to price changes 
C)  Will increase in response to a price increase 
D)  Will not change in response to a price change A

Question 3

Figure 7.3. World Oil Market
  
-Consider Figure 7.3.Under a profit-maximizing cartel,producers realize:

Accepted Answer

A)  Profits totaling $280 
B)  Profits totaling $360 
C)  Losses totaling $140 
D)  Losses totaling $180 
A)  Profits totaling $280 
B)  Profits totaling $360 
C)  Losses totaling $140 
D)  Losses totaling $180 A

Question 4

Which method has not generally been used by the international commodity agreements to stabilize commodity prices?

Accepted Answer

A)  Production quotas applied to the level of commodity output 
B)  Buffer stock arrangements among producing nations 
C)  Export restrictions applied to international sales of commodities 
D)  Measures to nationalize foreign-owned production operations 
A)  Production quotas applied to the level of commodity output 
B)  Buffer stock arrangements among producing nations 
C)  Export restrictions applied to international sales of commodities 
D)  Measures to nationalize foreign-owned production operations

Question 5

The OPEC nations during the 1970s manifested their market power by utilizing:

Accepted Answer

A)  Export tariffs levied for revenue purposes 
B)  Export tariffs levied for protective purposes 
C)  Import tariffs levied for protective purposes 
D)  Import tariffs levied for revenue purposes 
A)  Export tariffs levied for revenue purposes 
B)  Export tariffs levied for protective purposes 
C)  Import tariffs levied for protective purposes 
D)  Import tariffs levied for revenue purposes

Question 6

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

Accepted Answer

A)  High domestic interest rates 
B)  R&D and product innovation 
C)  Education and on-the-job training 
D)  High levels of saving and investment 
A)  High domestic interest rates 
B)  R&D and product innovation 
C)  Education and on-the-job training 
D)  High levels of saving and investment

Question 7

During periods of weak demand,the Organization of Petroleum Countries has implemented production (export)quotas to ensure that excess oil supplies be kept off the market.

Accepted Answer

A) True 
 B)False

Question 8

In its transition toward capitalism,by the 1990s China permitted free enterprise as well as democracy for its people.

Accepted Answer

A) True 
 B)False

Question 9

The so-called Four Tigers include Australia,South Korea,Taiwan,and Hong Kong.

Accepted Answer

A) True 
 B)False

Question 10

To be considered a good candidate for an export cartel,a commodity should:

Accepted Answer

A)  Be a manufactured good 
B)  Be a primary product 
C)  Have a high price elasticity of supply 
D)  Have a low price elasticity of demand 
A)  Be a manufactured good 
B)  Be a primary product 
C)  Have a high price elasticity of supply 
D)  Have a low price elasticity of demand

Question 11

Most developing-nation exports go to industrial nations while most developing-nation imports originate in industrial nations.

Accepted Answer

A) True 
 B)False

Question 12

Figure 7.2. Defending the Target Price in Face of Changing Supply Conditions
  
-Consider Figure 7.2.Suppose the supply of tin decreases from S? to S?.Under a buffer stock system,the buffer-stock manager could maintain the target price by:

Accepted Answer

A)  Purchasing 15 pounds of tin 
B)  Purchasing 30 pounds of tin 
C)  Selling 15 pounds of tin 
D)  Selling 30 pounds of tin 
A)  Purchasing 15 pounds of tin 
B)  Purchasing 30 pounds of tin 
C)  Selling 15 pounds of tin 
D)  Selling 30 pounds of tin

Question 13

As a profit-maximizing cartel,the Organization of Petroleum Exporting Countries would produce a greater output and charge a lower price than what would occur in a competitive market.

Accepted Answer

A) True 
 B)False

Question 14

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation)as an industrialization strategy.

Accepted Answer

A) True 
 B)False

Question 15

The "newly industrializing countries" of East Asia have emphasized the implementation of import-substitution policies to insulate their industries from international competition.

Accepted Answer

A) True 
 B)False

Question 16

If the demand for coffee is price inelastic,an increase in the supply of coffee leads to falling prices and rising sales revenues.

Accepted Answer

A) True 
 B)False

Question 17

For the oil-importing countries,the increases in oil prices in 1973-1974 and 1979-1980 resulted in all of the following except:

Accepted Answer

A)  Balance of trade deficits 
B)  Price inflation 
C)  Constrained economic growth 
D)  Improving terms of trade 
A)  Balance of trade deficits 
B)  Price inflation 
C)  Constrained economic growth 
D)  Improving terms of trade

Question 18

It is widely agreed that import-substitution policies have been a main contributor to above-average growth rates in developing countries.

Accepted Answer

A) True 
 B)False

Question 19

A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the minimum price at which importing countries agree to buy a product.

Accepted Answer

A) True 
 B)False

Question 20

Figure 7.3. World Oil Market
  
-Consider Figure 7.3.Under a profit-maximizing cartel,the quantity of oil produced equals:

Accepted Answer

A)  40 barrels 
B)  70 barrels 
C)  90 barrels 
D)  110 barrels 
A)  40 barrels 
B)  70 barrels 
C)  90 barrels 
D)  110 barrels

For most developing countries:

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Figure 7.3. World Oil Market -Consider Figure 7.3.Under a profit-maximizing cartel,producers realize:

Which method has not generally been used by the international commodity agreements to stabilize commodity prices?

The OPEC nations during the 1970s manifested their market power by utilizing:

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

During periods of weak demand,the Organization of Petroleum Countries has implemented production (export)quotas to ensure that excess oil supplies be kept off the market.

In its transition toward capitalism,by the 1990s China permitted free enterprise as well as democracy for its people.

The so-called Four Tigers include Australia,South Korea,Taiwan,and Hong Kong.

To be considered a good candidate for an export cartel,a commodity should:

Most developing-nation exports go to industrial nations while most developing-nation imports originate in industrial nations.

Figure 7.2. Defending the Target Price in Face of Changing Supply Conditions -Consider Figure 7.2.Suppose the supply of tin decreases from S? to S?.Under a buffer stock system,the buffer-stock manager could maintain the target price by:

As a profit-maximizing cartel,the Organization of Petroleum Exporting Countries would produce a greater output and charge a lower price than what would occur in a competitive market.

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation)as an industrialization strategy.

The "newly industrializing countries" of East Asia have emphasized the implementation of import-substitution policies to insulate their industries from international competition.

If the demand for coffee is price inelastic,an increase in the supply of coffee leads to falling prices and rising sales revenues.

For the oil-importing countries,the increases in oil prices in 1973-1974 and 1979-1980 resulted in all of the following except:

It is widely agreed that import-substitution policies have been a main contributor to above-average growth rates in developing countries.

A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the minimum price at which importing countries agree to buy a product.

Figure 7.3. World Oil Market -Consider Figure 7.3.Under a profit-maximizing cartel,the quantity of oil produced equals:

the International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

the Balance of Payments

Foreign Exchange

Exchange-rate Determination

Balance-of-payments Adjustments

Exchange-rate Adjustments and the Balance of Payments

Exchange-rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, debt, and Risk

Filters

Exam 7: Trade Policies for the Developing Nations

For most developing countries:

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Figure 7.3. World Oil Market -Consider Figure 7.3.Under a profit-maximizing cartel,producers realize:

Which method has not generally been used by the international commodity agreements to stabilize commodity prices?

The OPEC nations during the 1970s manifested their market power by utilizing:

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

During periods of weak demand,the Organization of Petroleum Countries has implemented production (export)quotas to ensure that excess oil supplies be kept off the market.

In its transition toward capitalism,by the 1990s China permitted free enterprise as well as democracy for its people.

The so-called Four Tigers include Australia,South Korea,Taiwan,and Hong Kong.

To be considered a good candidate for an export cartel,a commodity should:

Most developing-nation exports go to industrial nations while most developing-nation imports originate in industrial nations.

Figure 7.2. Defending the Target Price in Face of Changing Supply Conditions -Consider Figure 7.2.Suppose the supply of tin decreases from S? to S?.Under a buffer stock system,the buffer-stock manager could maintain the target price by:

As a profit-maximizing cartel,the Organization of Petroleum Exporting Countries would produce a greater output and charge a lower price than what would occur in a competitive market.

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation)as an industrialization strategy.

The "newly industrializing countries" of East Asia have emphasized the implementation of import-substitution policies to insulate their industries from international competition.

If the demand for coffee is price inelastic,an increase in the supply of coffee leads to falling prices and rising sales revenues.

For the oil-importing countries,the increases in oil prices in 1973-1974 and 1979-1980 resulted in all of the following except:

It is widely agreed that import-substitution policies have been a main contributor to above-average growth rates in developing countries.

A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the minimum price at which importing countries agree to buy a product.

Figure 7.3. World Oil Market -Consider Figure 7.3.Under a profit-maximizing cartel,the quantity of oil produced equals:

the International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

the Balance of Payments

Foreign Exchange

Exchange-rate Determination

Balance-of-payments Adjustments

Exchange-rate Adjustments and the Balance of Payments

Exchange-rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, debt, and Risk

Filters