Question 1

If the economy is producing at point a on its production possibility frontier,then

Accepted Answer

A) all of the country's exports are produced in equal amounts. 
B) all of the country's workers are specialized in one product. 
C) all of the country's workers are employed. 
D) all of the country's capital is used for one product. 
E) all of its capital is used,but not efficiently. 
A) all of the country's exports are produced in equal amounts. 
B) all of the country's workers are specialized in one product. 
C) all of the country's workers are employed. 
D) all of the country's capital is used for one product. 
E) all of its capital is used,but not efficiently. C

Question 2

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

Accepted Answer

A) improve Slovenia's real income. 
B) improve the real income of its trade partners. 
C) cause retaliation on the part of its trade partners. 
D) increase internal prices above the world market rate. 
E) harm Slovenia's real income. 
A) improve Slovenia's real income. 
B) improve the real income of its trade partners. 
C) cause retaliation on the part of its trade partners. 
D) increase internal prices above the world market rate. 
E) harm Slovenia's real income. B

Question 3

If a small country were to levy a tariff on its imports then this would

Accepted Answer

A) change the terms of trade. 
B) decrease the country's economic welfare. 
C) increase the country's economic welfare. 
D) raise prices on its exports in other countries. 
E) have no effect on that country's economic welfare. 
A) change the terms of trade. 
B) decrease the country's economic welfare. 
C) increase the country's economic welfare. 
D) raise prices on its exports in other countries. 
E) have no effect on that country's economic welfare. B

Question 4

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

Accepted Answer

A) nominal interest rate. 
B) rate of economic growth. 
C) real interest rate. 
D) inflation rate. 
E) terms of trade. 
A) nominal interest rate. 
B) rate of economic growth. 
C) real interest rate. 
D) inflation rate. 
E) terms of trade.

Question 5

It may be argued that theoretically,international capital movements

Accepted Answer

A) tend to hurt labor in donor countries. 
B) increase future production in donor countries. 
C) tend to hurt the recipient countries. 
D) tend to hurt the donor countries. 
E) tend to hurt labor in recipient countries. 
A) tend to hurt labor in donor countries. 
B) increase future production in donor countries. 
C) tend to hurt the recipient countries. 
D) tend to hurt the donor countries. 
E) tend to hurt labor in recipient countries.

Question 6

An export subsidy will cause the relative demand for _ to and the relative supply for to .

Accepted Answer

A) imports; decrease; imports; increase 
B) exports; decrease; exports; increase 
C) exports; increase; exports; decrease 
D) exports; increase; imports; decrease 
E) imports; increase; imports; decrease 
A) imports; decrease; imports; increase 
B) exports; decrease; exports; increase 
C) exports; increase; exports; decrease 
D) exports; increase; imports; decrease 
E) imports; increase; imports; decrease

Question 7

International borrowing and lending may be interpreted as one form of

Accepted Answer

A) trade in services. 
B) intertemporal trade. 
C) unrequited international transfers. 
D) intermediate trade. 
E) aid to offset trade advantages. 
A) trade in services. 
B) intertemporal trade. 
C) unrequited international transfers. 
D) intermediate trade. 
E) aid to offset trade advantages.

Question 8

When the production possibility frontier shifts out relatively more in one direction,we have

Accepted Answer

A) balanced growth. 
B) biased growth. 
C) imbalanced growth. 
D) immiserizing growth. 
E) unbiased growth. 
A) balanced growth. 
B) biased growth. 
C) imbalanced growth. 
D) immiserizing growth. 
E) unbiased growth.

Question 9

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

Accepted Answer

A) decrease its marginal propensity to consume. 
B) have no effect on its terms of trade. 
C) harm its terms of trade. 
D) increase its exports. 
E) improve its terms of trade. 
A) decrease its marginal propensity to consume. 
B) have no effect on its terms of trade. 
C) harm its terms of trade. 
D) increase its exports. 
E) improve its terms of trade.

Question 10

Suppose that a country experiences growth strongly biased toward its export,cloth,

Accepted Answer

A) this will increase the price of cloth relative to the imported good. 
B) this will tend to worsen the country's terms of trade. 
C) this will tend to improve the country's terms of trade. 
D) this will tend to leave the country's terms of trade unchanged. 
E) this will tend to worsen the terms of trade for the country's trading partner. 
A) this will increase the price of cloth relative to the imported good. 
B) this will tend to worsen the country's terms of trade. 
C) this will tend to improve the country's terms of trade. 
D) this will tend to leave the country's terms of trade unchanged. 
E) this will tend to worsen the terms of trade for the country's trading partner.

Question 11

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

Accepted Answer

A) improve the real income of its trade partners. 
B) improve Slovenia's real income. 
C) decrease the internal price of imports below the world market rate. 
D) cause retaliation on the part of its trade partners. 
E) harm Slovenia's real income. 
A) improve the real income of its trade partners. 
B) improve Slovenia's real income. 
C) decrease the internal price of imports below the world market rate. 
D) cause retaliation on the part of its trade partners. 
E) harm Slovenia's real income.

Question 12

The meaning of "terms of trade" is

Accepted Answer

A) the quantities of imports received in free trade. 
B) the price of a country's exports divided by the price of its imports. 
C) the price conditions bargained for in international markets. 
D) the tariffs in place between two trading countries. 
E) the amount of exports sold by a country. 
A) the quantities of imports received in free trade. 
B) the price of a country's exports divided by the price of its imports. 
C) the price conditions bargained for in international markets. 
D) the tariffs in place between two trading countries. 
E) the amount of exports sold by a country.

Question 13

A fall in the real interest rate,all other things held constant,will cause a country's to .

Accepted Answer

A) terms of trade; improve 
B) terms of trade; worsen 
C) current consumption: increase 
D) welfare level; improve 
E) current consumption: decrease 
A) terms of trade; improve 
B) terms of trade; worsen 
C) current consumption: increase 
D) welfare level; improve 
E) current consumption: decrease

Question 14

A country will be able to consume a combination of goods that is NOT attainable solely from domestic production if

Accepted Answer

A) the country avoids international trade. 
B) the world terms of trade differ from its domestic relative costs. 
C) the country specializes in one product. 
D) the world terms of trade equal the domestic relative costs. 
E) the country's domestic production value equals world relative value. 
A) the country avoids international trade. 
B) the world terms of trade differ from its domestic relative costs. 
C) the country specializes in one product. 
D) the world terms of trade equal the domestic relative costs. 
E) the country's domestic production value equals world relative value.

Question 15

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

Accepted Answer

A) have no effect on its terms of trade. 
B) decrease its marginal propensity to consume. 
C) harm world terms of trade. 
D) harm its terms of trade. 
E) improve its terms of trade. 
A) have no effect on its terms of trade. 
B) decrease its marginal propensity to consume. 
C) harm world terms of trade. 
D) harm its terms of trade. 
E) improve its terms of trade.

Question 16

The intertemporal budget constraint is defined as:

Accepted Answer

A) V = QP + QF/(1 + r) 
B) V = DP + DF/(1 + r) 
C) DF + DP/(1 + r)= QF + QP/(1 + r) 
D) DP + DF(1 + r)= QP + QF(1 + r) 
E) DP + DF/(1 + r)= QP + QF/(1 + r) 
A) V = QP + QF/(1 + r) 
B) V = DP + DF/(1 + r) 
C) DF + DP/(1 + r)= QF + QP/(1 + r) 
D) DP + DF(1 + r)= QP + QF(1 + r) 
E) DP + DF/(1 + r)= QP + QF/(1 + r)

Question 17

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

Accepted Answer

A) the cloth exporter will increase the quantity of cloth produced. 
B) the cloth exporter will decrease the quantity of cloth exported. 
C) the food exporter will increase the quantity of food exported. 
D) the cloth exporter will increase the quantity of cloth exported. 
E) the country would import more cloth. 
A) the cloth exporter will increase the quantity of cloth produced. 
B) the cloth exporter will decrease the quantity of cloth exported. 
C) the food exporter will increase the quantity of food exported. 
D) the cloth exporter will increase the quantity of cloth exported. 
E) the country would import more cloth.

Question 18

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

Accepted Answer

A) exporting; improve; benefit 
B) importing; improve; benefit 
C) exporting; improve; harm 
D) importing; suffer; harm 
E) importing; improve; harm 
A) exporting; improve; benefit 
B) importing; improve; benefit 
C) exporting; improve; harm 
D) importing; suffer; harm 
E) importing; improve; harm

Question 19

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

Accepted Answer

A) increase its exports. 
B) decrease its marginal propensity to consume. 
C) improve its terms of trade. 
D) deteriorate its terms of trade. 
E) have no effect on its terms of trade. 
A) increase its exports. 
B) decrease its marginal propensity to consume. 
C) improve its terms of trade. 
D) deteriorate its terms of trade. 
E) have no effect on its terms of trade.

Question 20

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

Accepted Answer

A) world relative quantity of cloth supplied and demanded will decrease. 
B) world relative quantity of food will increase. 
C) world relative quantity of cloth supplied will increase. 
D) world relative quantity of cloth demanded will decrease. 
E) world relative quantity of cloth supplied and demanded will increase. 
A) world relative quantity of cloth supplied and demanded will decrease. 
B) world relative quantity of food will increase. 
C) world relative quantity of cloth supplied will increase. 
D) world relative quantity of cloth demanded will decrease. 
E) world relative quantity of cloth supplied and demanded will increase.

If the economy is producing at point a on its production possibility frontier,then

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

If a small country were to levy a tariff on its imports then this would

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

It may be argued that theoretically,international capital movements

An export subsidy will cause the relative demand for _ to and the relative supply for to .

International borrowing and lending may be interpreted as one form of

When the production possibility frontier shifts out relatively more in one direction,we have

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

Suppose that a country experiences growth strongly biased toward its export,cloth,

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

The meaning of "terms of trade" is

A fall in the real interest rate,all other things held constant,will cause a country's to .

A country will be able to consume a combination of goods that is NOT attainable solely from domestic production if

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 budget constraint is defined as:

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

An import tariff 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

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters

Exam 6: The Standard Trade Model

If the economy is producing at point a on its production possibility frontier,then

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

If a small country were to levy a tariff on its imports then this would

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

It may be argued that theoretically,international capital movements

An export subsidy will cause the relative demand for _ to and the relative supply for to .

International borrowing and lending may be interpreted as one form of

When the production possibility frontier shifts out relatively more in one direction,we have

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

Suppose that a country experiences growth strongly biased toward its export,cloth,

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

The meaning of "terms of trade" is

A fall in the real interest rate,all other things held constant,will cause a country's to .

A country will be able to consume a combination of goods that is NOT attainable solely from domestic production if

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 budget constraint is defined as:

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

An import tariff 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

If the ratio of price of cloth (PC)divided by the price of food (PF)increases in the international marketplace,then

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters