Question 1

A nation will have a(n)________ of a good when its production of that good is relatively more productive than that of another nation.

Accepted Answer

A)  absolute advantage 
B)  comparative advantage 
C)  relative advantage 
D)  trade advantage 
A)  absolute advantage 
B)  comparative advantage 
C)  relative advantage 
D)  trade advantage B

Question 2

Adam Smith's term for the situation in which a country has the capacity to produce more than it can sell in the domestic market is known as:

Accepted Answer

A)  safety stock. 
B)  leftover goods. 
C)  capacity maximization. 
D)  vent for surplus. 
A)  safety stock. 
B)  leftover goods. 
C)  capacity maximization. 
D)  vent for surplus. D

Question 3

Most world trade involves manufactured goods,but ________ still represent about one-third of the value of all traded goods.

Accepted Answer

A)  primary products 
B)  secondary products 
C)  intermediate materials 
D)  processed materials 
A)  primary products 
B)  secondary products 
C)  intermediate materials 
D)  processed materials A

Question 4

Almost half of Asia's exports today are sent to:

Accepted Answer

A)  North America. 
B)  Europe. 
C)  other Asian countries. 
D)  the Middle East. 
A)  North America. 
B)  Europe. 
C)  other Asian countries. 
D)  the Middle East.

Question 5

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Exporting primary products,forward linkages

Accepted Answer

Exporting Primary Products:
Exporting pr

Question 6

Which country is the largest trading partner of the United States?

Accepted Answer

A)  Mexico 
B)  Canada 
C)  China 
D)  Japan 
A)  Mexico 
B)  Canada 
C)  China 
D)  Japan

Question 7

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Dutch disease,exchange rates

Accepted Answer

Dutch Disease:

1. Meaning and Significa

Question 8

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Primary products,manufactured goods

Accepted Answer

Primary Products:
Primary products refer

Question 9

________ prices are domestic prices without trade.

Accepted Answer

A)  Autarky 
B)  Commodity 
C)  Absolute 
D)  National 
A)  Autarky 
B)  Commodity 
C)  Absolute 
D)  National

Question 10

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Open trade,winners and losers

Accepted Answer

Open Trade:

Meaning and Significance:
O

Question 11

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Tradable goods,nontradable goods

Accepted Answer

Tradable goods are products or services

Question 12

The best prevention for Dutch disease effects is to avoid or reverse the initial real ________ of the currency.

Accepted Answer

A)  appreciation 
B)  depreciation 
C)  devaluation 
D)  purchasing power 
A)  appreciation 
B)  depreciation 
C)  devaluation 
D)  purchasing power

Question 13

In 2009,which nation replaced Germany as the world's largest exporter of goods?

Accepted Answer

A)  United States 
B)  Japan 
C)  Russia 
D)  China 
A)  United States 
B)  Japan 
C)  Russia 
D)  China

Question 14

Which of the following refers to the accumulation of foreign assets,usually financed by primary product export earnings?

Accepted Answer

A)  offshore bank account 
B)  foreign investment 
C)  sovereign wealth fund 
D)  international hedge fund 
A)  offshore bank account 
B)  foreign investment 
C)  sovereign wealth fund 
D)  international hedge fund

Question 15

Gains from trade are made up of the gains from ________ plus the gains from ________.

Accepted Answer

A)  population size; diversification 
B)  exchange; diversification 
C)  technology; education 
D)  exchange; specialization 
A)  population size; diversification 
B)  exchange; diversification 
C)  technology; education 
D)  exchange; specialization

Question 16

Which of the following is the price at which anyone holding foreign exchange can convert it into local currency?

Accepted Answer

A)  real exchange rate 
B)  nominal exchange rate 
C)  foreign exchange rate 
D)  national exchange rate 
A)  real exchange rate 
B)  nominal exchange rate 
C)  foreign exchange rate 
D)  national exchange rate

Question 17

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Export pessimism,relative price movements

Accepted Answer

Export pessimism is an economic concept

Question 18

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Global exchange,high-income nations

Accepted Answer

Global Exchange:

1. Meaning and Signifi

Question 19

The bulk of world trade originates and is exchanged between ________ economies.

Accepted Answer

A)  high-income 
B)  low-income 
C)  developing 
D)  closed 
A)  high-income 
B)  low-income 
C)  developing 
D)  closed

Question 20

An increase in nontradables prices causes the real exchange rate (RER)to:

Accepted Answer

A)  appreciate. 
B)  depreciate. 
C)  remain unchanged. 
D)  equal the nominal exchange rate. 
A)  appreciate. 
B)  depreciate. 
C)  remain unchanged. 
D)  equal the nominal exchange rate.

A nation will have a(n)________ of a good when its production of that good is relatively more productive than that of another nation.

Adam Smith's term for the situation in which a country has the capacity to produce more than it can sell in the domestic market is known as:

Most world trade involves manufactured goods,but ________ still represent about one-third of the value of all traded goods.

Almost half of Asia's exports today are sent to:

Which country is the largest trading partner of the United States?

________ prices are domestic prices without trade.

The best prevention for Dutch disease effects is to avoid or reverse the initial real ________ of the currency.

In 2009,which nation replaced Germany as the world's largest exporter of goods?

Which of the following refers to the accumulation of foreign assets,usually financed by primary product export earnings?

Gains from trade are made up of the gains from plus the gains from .

Which of the following is the price at which anyone holding foreign exchange can convert it into local currency?

The bulk of world trade originates and is exchanged between ________ economies.

An increase in nontradables prices causes the real exchange rate (RER)to:

Patterns of Development

Measuring Economic Growth and Development

Economic Growth: Concepts and Patterns

Theories of Economic Growth

States and Markets

Inequality and Poverty

Population

Education

Health

Investment and Savings

Fiscal Policy

Financial Development and Inflation

Foreign Debt and Financial Crises

Foreign Aid

Managing Short-Run Crises in an Open Economy

Agriculture and Development

Agricultural Development: Technology, policies, and Institutions

Trade Policy

Sustainable Development

Filters

Exam 18: Trade and Development

A nation will have a(n)________ of a good when its production of that good is relatively more productive than that of another nation.

Adam Smith's term for the situation in which a country has the capacity to produce more than it can sell in the domestic market is known as:

Most world trade involves manufactured goods,but ________ still represent about one-third of the value of all traded goods.

Almost half of Asia's exports today are sent to:

Which country is the largest trading partner of the United States?

________ prices are domestic prices without trade.

The best prevention for Dutch disease effects is to avoid or reverse the initial real ________ of the currency.

In 2009,which nation replaced Germany as the world's largest exporter of goods?

Which of the following refers to the accumulation of foreign assets,usually financed by primary product export earnings?

Gains from trade are made up of the gains from ________ plus the gains from ________.

Which of the following is the price at which anyone holding foreign exchange can convert it into local currency?

The bulk of world trade originates and is exchanged between ________ economies.

An increase in nontradables prices causes the real exchange rate (RER)to:

Patterns of Development

Measuring Economic Growth and Development

Economic Growth: Concepts and Patterns

Theories of Economic Growth

States and Markets

Inequality and Poverty

Population

Education

Health

Investment and Savings

Fiscal Policy

Financial Development and Inflation

Foreign Debt and Financial Crises

Foreign Aid

Managing Short-Run Crises in an Open Economy

Agriculture and Development

Agricultural Development: Technology, policies, and Institutions

Trade Policy

Sustainable Development

Filters

Gains from trade are made up of the gains from plus the gains from .