Exam 11: Economic Growth and International Trade

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If, when a country grows, its home production of its export good increases by 10 percent and its home consumption of its export good also increases by 10 percent, then, with the economic growth and with other things equal, the country's absolute quantity of exports will __________.

(Multiple Choice)

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Question 21

If population growth is taking place,

(Multiple Choice)

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Question 22

Other things equal, which one of the following types of growth in a large country will have the most adverse impact upon that country's terms of trade?

(Multiple Choice)

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Question 23

If growth in national income is due entirely to growth in the labor force, under the Heckscher-Ohlin assumptions,

(Multiple Choice)

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Question 24

Developing countries often claim that growth and trade have left them no better off or perhaps worse off. How might you explain this result theoretically? Could this result obtain if the countries tended to be relatively small? Why or why not?

(Essay)

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Question 25

Is it possible that growth in the scarce factor can actually lead to expanded trade in the small-country case? Under what circumstances?

(Short Answer)

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Question 26

If, at constant relative prices in a two-commodity and two-factor world, growth in a country's labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good, this situation is an example of the

(Multiple Choice)

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Question 27

With economic growth (where the growth reflects the "net" or "overall" effect of the Production and consumption effects), a country's offer curve (with the export good on the Horizontal axis)

(Multiple Choice)

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Question 28

In the two-commodity context, you are given the following information pertaining to country I in the year 2009 and the year 2014: Production of good X in 2009 = 200 units Production of good X in 2014 = 198 units Consumption of good X in 2009 = 160 units Consumption of good X in 2014 = 176 units Production of good Y in 2009 = 100 units Production of good Y in 2014 = 120 units Consumption of good Y in 2009 = 120 units Consumption of good Y in 2014 = 131 units Given this information, this country, in 2009, is and, in 2009, the country is .

(Multiple Choice)

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Question 29

Other things equal, which one of the following factors would likely NOT contribute to a worsening of the terms of trade of developing countries?

(Multiple Choice)

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Question 30

If technological change in an industry results, at given relative factor prices, in a reduction in the amount of both capital and labor used to produce a given amount of output, but the reduction in labor requirements is greater than the reduction in capital requirements, this technological change would be called __________ in nature.

(Multiple Choice)

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Question 31

If the "net" or "overall" effect (which is the net result of the production and consumption effects) of a country's growth is "protrade" in nature, then the country's offer curve (with the export good on the horizontal axis) will shift or pivot ; if the "net" or "overall" effect is "antitrade" in nature, then the country's offer curve (with the export good on the horizontal axis) .

(Multiple Choice)

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Question 32

In the new endogenous growth models

(Multiple Choice)

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Question 33

In a Heckscher-Ohlin context, other things equal, growth of the relatively-abundant factor Of production in a country that is a "large" country will lead to willingness to trade and to in the country's terms of trade.

(Multiple Choice)

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Question 34

Showing 21 - 34 of 34

If, when a country grows, its home production of its export good increases by 10 percent and its home consumption of its export good also increases by 10 percent, then, with the economic growth and with other things equal, the country's absolute quantity of exports will __________.

If population growth is taking place,

Other things equal, which one of the following types of growth in a large country will have the most adverse impact upon that country's terms of trade?

If growth in national income is due entirely to growth in the labor force, under the Heckscher-Ohlin assumptions,

Developing countries often claim that growth and trade have left them no better off or perhaps worse off. How might you explain this result theoretically? Could this result obtain if the countries tended to be relatively small? Why or why not?

Is it possible that growth in the scarce factor can actually lead to expanded trade in the small-country case? Under what circumstances?

If, at constant relative prices in a two-commodity and two-factor world, growth in a country's labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good, this situation is an example of the

With economic growth (where the growth reflects the "net" or "overall" effect of the Production and consumption effects), a country's offer curve (with the export good on the Horizontal axis)

Other things equal, which one of the following factors would likely NOT contribute to a worsening of the terms of trade of developing countries?

In the new endogenous growth models

In a Heckscher-Ohlin context, other things equal, growth of the relatively-abundant factor Of production in a country that is a "large" country will lead to willingness to trade and to in the country's terms of trade.

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

International Factor Movements

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

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

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Exam 11: Economic Growth and International Trade

If, when a country grows, its home production of its export good increases by 10 percent and its home consumption of its export good also increases by 10 percent, then, with the economic growth and with other things equal, the country's absolute quantity of exports will __________.

If population growth is taking place,

Other things equal, which one of the following types of growth in a large country will have the most adverse impact upon that country's terms of trade?

If growth in national income is due entirely to growth in the labor force, under the Heckscher-Ohlin assumptions,

Developing countries often claim that growth and trade have left them no better off or perhaps worse off. How might you explain this result theoretically? Could this result obtain if the countries tended to be relatively small? Why or why not?

Is it possible that growth in the scarce factor can actually lead to expanded trade in the small-country case? Under what circumstances?

If, at constant relative prices in a two-commodity and two-factor world, growth in a country's labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good, this situation is an example of the

With economic growth (where the growth reflects the "net" or "overall" effect of the Production and consumption effects), a country's offer curve (with the export good on the Horizontal axis)

Other things equal, which one of the following factors would likely NOT contribute to a worsening of the terms of trade of developing countries?

In the new endogenous growth models

In a Heckscher-Ohlin context, other things equal, growth of the relatively-abundant factor Of production in a country that is a "large" country will lead to __________ willingness to trade and to __________ in the country's terms of trade.

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

International Factor Movements

The Instruments of Trade Policy

The Impact of Trade Policies

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

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

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

In a Heckscher-Ohlin context, other things equal, growth of the relatively-abundant factor Of production in a country that is a "large" country will lead to willingness to trade and to in the country's terms of trade.