Question 1

Consider Figure 2.2.With trade,Canada consumes:

Accepted Answer

A)  12 televisions and 8 refrigerators 
B)  12 televisions and 16 refrigerators 
C)  8 televisions and 16 refrigerators 
D)  24 refrigerators 
A)  12 televisions and 8 refrigerators 
B)  12 televisions and 16 refrigerators 
C)  8 televisions and 16 refrigerators 
D)  24 refrigerators

Question 2

The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.

Accepted Answer

A) True 
 B)False

Question 3

Refer to Figure 2.1.If the relative cost of steel were to rise,then the production possibilities schedule would:

Accepted Answer

A)  Become steeper 
B)  Become flatter 
C)  Shift inward in a parallel manner 
D)  Shift outward in a parallel manner 
A)  Become steeper 
B)  Become flatter 
C)  Shift inward in a parallel manner 
D)  Shift outward in a parallel manner

Question 4

Table 2.2.Output possibilities for South Korea and Japan
  
-Refer to Table 2.2.With international trade,what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for each ton of steel?

Accepted Answer

A)  1 VCR 
B)  2 VCRs 
C)  3 VCRs 
D)  4 VCRs 
A)  1 VCR 
B)  2 VCRs 
C)  3 VCRs 
D)  4 VCRs

Question 5

With trade,a country will maximize its satisfaction when it:

Accepted Answer

A)  Moves to the highest possible indifference curve 
B)  Forces the marginal rate of substitution to its lowest possible value 
C)  Consumes more of both goods than it does in autarky 
D)  Finds its marginal rate of substitution exceeding its marginal rate of transformation 
A)  Moves to the highest possible indifference curve 
B)  Forces the marginal rate of substitution to its lowest possible value 
C)  Consumes more of both goods than it does in autarky 
D)  Finds its marginal rate of substitution exceeding its marginal rate of transformation

Question 6

The commodity terms of trade measures

Accepted Answer

A)  The rate at which exports exchange for imports 
B)  The influence trade has on productivity levels 
C)  The effect on income of the trading nation 
D)  The improvement in a nation's welfare 
A)  The rate at which exports exchange for imports 
B)  The influence trade has on productivity levels 
C)  The effect on income of the trading nation 
D)  The improvement in a nation's welfare

Consider Figure 2.2.With trade,Canada consumes:

The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.

Refer to Figure 2.1.If the relative cost of steel were to rise,then the production possibilities schedule would:

Table 2.2.Output possibilities for South Korea and Japan -Refer to Table 2.2.With international trade,what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for each ton of steel?

With trade,a country will maximize its satisfaction when it:

The commodity terms of trade measures

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

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 2: Foundations of Modern Trade Theory: Comparative Advantage

Consider Figure 2.2.With trade,Canada consumes:

The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.

Refer to Figure 2.1.If the relative cost of steel were to rise,then the production possibilities schedule would:

Table 2.2.Output possibilities for South Korea and Japan -Refer to Table 2.2.With international trade,what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for each ton of steel?

With trade,a country will maximize its satisfaction when it:

The commodity terms of trade measures

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

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters