Question 1

-Refer to above figure.Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?

Accepted Answer

Imperfecti

Question 2

Import substitution policies make use of

Accepted Answer

A)  tariffs that discourage goods from entering a country. 
B)  quotas applied to goods that are shipped abroad. 
C)  production subsidies granted to industries with comparative advantage. 
D)  tax breaks granted to industries with comparative advantage. 
E)  production facilities provided by industrialized countries. 
A)  tariffs that discourage goods from entering a country. 
B)  quotas applied to goods that are shipped abroad. 
C)  production subsidies granted to industries with comparative advantage. 
D)  tax breaks granted to industries with comparative advantage. 
E)  production facilities provided by industrialized countries.

Question 3

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Accepted Answer

A)  Developing country exports consist mainly of manufactured goods. 
B)  Developing country exports consist mainly of primary products. 
C)  Commodity export prices are determined in highly competitive markets. 
D)  Commodity export prices are solely determined by developing countries. 
E)  Developing country exports are too diverse. 
A)  Developing country exports consist mainly of manufactured goods. 
B)  Developing country exports consist mainly of primary products. 
C)  Commodity export prices are determined in highly competitive markets. 
D)  Commodity export prices are solely determined by developing countries. 
E)  Developing country exports are too diverse.

-Refer to above figure.Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?

Import substitution policies make use of

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Introduction

National Income Accounting and the Balance of Payments

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade 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

Controversies in Trade Policy

Filters

Exam 11: Trade Policy in Developing Countries

-Refer to above figure.Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?

Import substitution policies make use of

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Introduction

National Income Accounting and the Balance of Payments

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade 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

Controversies in Trade Policy

Filters