Exam 2: Foundations of Modern Trade Theory Comparative Advantage

A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.

(True/False)

4.8/5

(39)

Question 61

Which country is a global leader in developing digital products?

(Multiple Choice)

4.9/5

(39)

Question 62

E-books have changed the _________ for books.

(Multiple Choice)

4.8/5

(35)

Question 63

The theory of reciprocal demand best applies when one country has a "large" economy and the other country has a "small" economy.

(True/False)

4.8/5

(35)

Question 64

Which is NOT true about Adam Smith?

(Multiple Choice)

4.8/5

(37)

Question 65

David Ricardo's simplified trade model assumes all of the following EXCEPT

(Multiple Choice)

4.9/5

(33)

Question 66

Assume that Canada has a comparative advantage in wheat and a comparative disadvantage in autos.As the Canadian demand for wheat increases, Canada's equilibrium terms of trade improves.

(True/False)

4.8/5

(32)

Question 67

The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam Smith.

(True/False)

4.9/5

(35)

Question 68

Increasing opportunity costs suggest that

(Multiple Choice)

4.9/5

(31)

Question 69

Which is an example of movement of factors of production between countries within an industry?

(Multiple Choice)

4.8/5

(42)

Question 70

International trade tends to be complete, rather than partial, when which of the following occurs?

(Multiple Choice)

4.9/5

(38)

Question 71

The existence of exit barriers tends to delay the closing of inefficient firms that face international competitive disadvantages.

(True/False)

4.9/5

(35)

Question 72

The trading principle formulated by Adam Smith maintained that

(Multiple Choice)

4.8/5

(25)

Question 73

Which of the following terms-of-trade concepts is calculated by dividing the change in a country's export price index by the change in its import price index between two points in time, multiplied by 100 to express the terms of trade in percentages?

(Multiple Choice)

4.9/5

(31)

Question 74

A terms-of-trade index that equals 150 indicates that compared to the base year,

(Multiple Choice)

4.9/5

(32)

Question 75

The commodity terms of trade is found by dividing a country's import price index by its export price index.

(True/False)

4.8/5

(32)

Question 76

Both Adam Smith and David Ricardo

(Multiple Choice)

4.7/5

(45)

Question 77

If Mexico was to realize an increase in its factors of production, its production possibilities frontier would shift inward toward the origin of the diagram.

(True/False)

4.8/5

(39)

Question 78

A term-of-trade index that equals 90 indicates that compared to the base year,

(Multiple Choice)

4.9/5

(48)

Question 79

According to Apple, why does the company no longer assemble the majority of its products in the United States?

(Multiple Choice)

4.8/5

(35)

Question 80

Showing 61 - 80 of 215

A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.

Which country is a global leader in developing digital products?

E-books have changed the _________ for books.

The theory of reciprocal demand best applies when one country has a "large" economy and the other country has a "small" economy.

Which is NOT true about Adam Smith?

David Ricardo's simplified trade model assumes all of the following EXCEPT

Assume that Canada has a comparative advantage in wheat and a comparative disadvantage in autos.As the Canadian demand for wheat increases, Canada's equilibrium terms of trade improves.

The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam Smith.

Increasing opportunity costs suggest that

Which is an example of movement of factors of production between countries within an industry?

International trade tends to be complete, rather than partial, when which of the following occurs?

The existence of exit barriers tends to delay the closing of inefficient firms that face international competitive disadvantages.

The trading principle formulated by Adam Smith maintained that

Which of the following terms-of-trade concepts is calculated by dividing the change in a country's export price index by the change in its import price index between two points in time, multiplied by 100 to express the terms of trade in percentages?

A terms-of-trade index that equals 150 indicates that compared to the base year,

The commodity terms of trade is found by dividing a country's import price index by its export price index.

Both Adam Smith and David Ricardo

If Mexico was to realize an increase in its factors of production, its production possibilities frontier would shift inward toward the origin of the diagram.

A term-of-trade index that equals 90 indicates that compared to the base year,

According to Apple, why does the company no longer assemble the majority of its products in the United States?

The International Economy and Globalization

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance of Payments

Exchange Rate Systems and Currency Crises

Filters