Exam 14: Trade Policies for Developing Countries

What special challenges existed for the former Soviet Union countries transitioning from centrally planned economies to market based economies? How successful have these countries been?

Import-substituting industrialization policy moves a country toward national self-sufficiency.

Which of these statements about cartel pricing power is true?

The infant industry argument goes against the initiative of some developing countries to develop more advanced manufacturing industries

Since 1980, developing countries have turned increasingly toward emphasizing:

Which of the following is indicated by the Engel's law?

Explain why very few of the many international commodity cartels that have been formed since World War I have survived.

For a large country, replacing imports with domestic goods can result in:

The relative prices of the products that use natural resources intensively will decrease over time with the decrease in the availability of the natural resources.

What kind of progress was made by developing countries to break into world markets for their exports of manufactures?

The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output. A declining market share of the cartel would lead to a:

The long-run decline in the relative price of primary products is a strong reason for developing countries to avoid exporting primary products.

Which of the following suggests that labor markets work less efficiently in the developing countries?

In comparing growth rates of per capita GDP in developing countries over the period of 1990-2012, the highest growth rates were reported in the _____ countries while the lowest growth rates have been reported in the _____ countries.

The long-run trends of relative prices of primary products suggest that the countries that are dependent on the export of primary products are most likely to:

Living standards were converging among developing countries during 1990-2012.

_____ suggests that with an increase in economic prosperity, the world demand will shift toward luxury goods and away from staple goods.

Studies of ISI and related policies show that income growth is:

The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output. If the world market for good A were perfectly competitive, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

Which of the following is true of the developing countries