Question 1

For most developing countries:

Accepted Answer

A) productivity is high among domestic workers. 
B) population growth and illiteracy rates are low. 
C) savings and investment levels are high. 
D) agricultural goods and raw material tend to make up much of domestic output. 
A) productivity is high among domestic workers. 
B) population growth and illiteracy rates are low. 
C) savings and investment levels are high. 
D) agricultural goods and raw material tend to make up much of domestic output. D

Question 2

As part of the deal with the IMF to renegotiate their debts after an inability to pay the interest on its foreign debt in 1982,Mexico was required to adopt which of the following measures?

Accepted Answer

A) Reduction of importation 
B) Increase inflation to reduce the value of foreign debt 
C) Increase domestic spending on programs aimed at bringing in the skilled workers needed to free them from the financial crisis 
D) Export reduction 
A) Reduction of importation 
B) Increase inflation to reduce the value of foreign debt 
C) Increase domestic spending on programs aimed at bringing in the skilled workers needed to free them from the financial crisis 
D) Export reduction A

Question 3

Which of the following is not a characteristic of a developing country?

Accepted Answer

A) A high proportion of the labor force in agriculture 
B) A high illiteracy rate 
C) Low life expectancy 
D) Low population growth rate 
A) A high proportion of the labor force in agriculture 
B) A high illiteracy rate 
C) Low life expectancy 
D) Low population growth rate D

Question 4

The International Wheat Agreement,signed in 1949,is still in operation today.

Accepted Answer

A) True 
 B)False

Question 5

One of the most serious problems facing developing countries today is the lack of high paying corporate level positions,as this is the type of skilled labor needed to alleviate the poverty problem in these nations.

Accepted Answer

A) True 
 B)False

Question 6

Assume in base year 1990,the index for the volume of exports is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has fallen 6 percent,the price index for imports has risen by 9 percent,and the index for the volume of exports is 108 for 2004.What is the value of the U.S.income terms of trade?

Accepted Answer

A) 93.1 
B) 89.7 
C) 88.6 
D) 63.4 
A) 93.1 
B) 89.7 
C) 88.6 
D) 63.4

Question 7

Which of the following is one of the three main disadvantages of an import-substitution industrialization strategy?

Accepted Answer

A) It may be very difficult for developing nations to set up export industries because of the competition from the more established and efficient industries in developed nations 
B) Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient 
C) Developed nations often provide a high level of effective protection for their industries producing simple labor-intensive commodities in which developing nations already have or can soon acquire a comparative advantage 
D) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations. 
A) It may be very difficult for developing nations to set up export industries because of the competition from the more established and efficient industries in developed nations 
B) Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient 
C) Developed nations often provide a high level of effective protection for their industries producing simple labor-intensive commodities in which developing nations already have or can soon acquire a comparative advantage 
D) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations.

Question 8

The new international Economic Order called for the renegotiation of the international debt of developing countries and the reduction in interest payments.

Accepted Answer

A) True 
 B)False

Question 9

Assume in base year 1990,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has fallen 7 percent and the price index for imports has risen by 5 percent.What is the value of the U.S.net barter terms of trade?

Accepted Answer

A) 63.4 
B) 101.2 
C) 88.6 
D) 112.5 
A) 63.4 
B) 101.2 
C) 88.6 
D) 112.5

Question 10

Which terms of trade concept emphasizes a nation's capacity to import?

Accepted Answer

A) Income terms of trade 
B) Commodity terms of trade 
C) Barter terms of trade 
D) Price terms of trade 
A) Income terms of trade 
B) Commodity terms of trade 
C) Barter terms of trade 
D) Price terms of trade

Question 11

When a nation's terms of trade deteriorates to the point where the nation is worse off after growth than before,the nation has experienced:

Accepted Answer

A) immiserizing growth 
B) post trade stagnation 
C) unbalanced growth 
D) impeded growth 
A) immiserizing growth 
B) post trade stagnation 
C) unbalanced growth 
D) impeded growth

Question 12

Assume in base year 1990,the index for the volume of exports is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has risen 3 percent,the price index for imports has fallen by 4 percent,and the index for the volume of exports is 95 in 2004.What is the value of the U.S.income terms of trade?

Accepted Answer

A) 95.1 
B) 101.9 
C) 88.6 
D) 106.7 
A) 95.1 
B) 101.9 
C) 88.6 
D) 106.7

Question 13

Which of the following areas would have countries which are more likely to use trade primarily as a vent for agricultural surplus? Southeast Asia

Accepted Answer

A) Eastern Europe 
B) North America 
C) South America 
A) Eastern Europe 
B) North America 
C) South America

Question 14

Which of the following countries is characterized by rapid growth in gross domestic product in industrial production and manufactured exports?

Accepted Answer

A) Hong Kong 
B) Korea 
C) Singapore 
D) All of these countries 
A) Hong Kong 
B) Korea 
C) Singapore 
D) All of these countries

Question 15

Which of the following was an empty and resource-rich land settled by the Europeans during the 1800s?

Accepted Answer

A) New Zealand 
B) Argentina 
C) Uruguay 
D) All of these countries 
A) New Zealand 
B) Argentina 
C) Uruguay 
D) All of these countries

Question 16

If a nation's terms of trade increases from ½ to 1,and consumption increases from a lower indifference curve to a higher one,this nation is experiencing immiserizing growth.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is one of the three main advantages of an import-substitution industrialization strategy?

Accepted Answer

A) The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
B) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale 
C) Production of manufactured goods for export requires and stimulates efficiency throughout the economy 
D) The expansion of manufactured exports is not limited by the growth of the domestic market 
A) The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
B) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale 
C) Production of manufactured goods for export requires and stimulates efficiency throughout the economy 
D) The expansion of manufactured exports is not limited by the growth of the domestic market

Question 18

What type of international commodity agreement seeks to regulate the quantity of the commodity exported by each nation?

Accepted Answer

A) Buffer stock 
B) Export controls 
C) Purchase contracts 
D) Marketing Board 
A) Buffer stock 
B) Export controls 
C) Purchase contracts 
D) Marketing Board

Question 19

Which of the following long-term multilateral agreements stipulates the minimum price at which importing nations agree to buy and a maximum price at which exporting nations agree to sell specified amounts of the commodity?

Accepted Answer

A) Buffer stock 
B) Export controls 
C) Purchase contracts 
D) Marketing Board 
A) Buffer stock 
B) Export controls 
C) Purchase contracts 
D) Marketing Board

Question 20

Which of the following graphs reflects a balanced growth (the two axis represents two goods X and Y and the curves (I and II)represent the before and after growth position of the PPF)?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

For most developing countries:

As part of the deal with the IMF to renegotiate their debts after an inability to pay the interest on its foreign debt in 1982,Mexico was required to adopt which of the following measures?

Which of the following is not a characteristic of a developing country?

The International Wheat Agreement,signed in 1949,is still in operation today.

One of the most serious problems facing developing countries today is the lack of high paying corporate level positions,as this is the type of skilled labor needed to alleviate the poverty problem in these nations.

Which of the following is one of the three main disadvantages of an import-substitution industrialization strategy?

The new international Economic Order called for the renegotiation of the international debt of developing countries and the reduction in interest payments.

Assume in base year 1990,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has fallen 7 percent and the price index for imports has risen by 5 percent.What is the value of the U.S.net barter terms of trade?

Which terms of trade concept emphasizes a nation's capacity to import?

When a nation's terms of trade deteriorates to the point where the nation is worse off after growth than before,the nation has experienced:

Which of the following areas would have countries which are more likely to use trade primarily as a vent for agricultural surplus? Southeast Asia

Which of the following countries is characterized by rapid growth in gross domestic product in industrial production and manufactured exports?

Which of the following was an empty and resource-rich land settled by the Europeans during the 1800s?

If a nation's terms of trade increases from ½ to 1,and consumption increases from a lower indifference curve to a higher one,this nation is experiencing immiserizing growth.

Which of the following is one of the three main advantages of an import-substitution industrialization strategy?

What type of international commodity agreement seeks to regulate the quantity of the commodity exported by each nation?

Which of the following long-term multilateral agreements stipulates the minimum price at which importing nations agree to buy and a maximum price at which exporting nations agree to sell specified amounts of the commodity?

Which of the following graphs reflects a balanced growth (the two axis represents two goods X and Y and the curves (I and II)represent the before and after growth position of the PPF)?

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Automatic Adjustments With Flexible and Fixed Exchange Rates

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters

Exam 8: Growth and Development With International Trade

For most developing countries:

As part of the deal with the IMF to renegotiate their debts after an inability to pay the interest on its foreign debt in 1982,Mexico was required to adopt which of the following measures?

Which of the following is not a characteristic of a developing country?

The International Wheat Agreement,signed in 1949,is still in operation today.

One of the most serious problems facing developing countries today is the lack of high paying corporate level positions,as this is the type of skilled labor needed to alleviate the poverty problem in these nations.

Which of the following is one of the three main disadvantages of an import-substitution industrialization strategy?

The new international Economic Order called for the renegotiation of the international debt of developing countries and the reduction in interest payments.

Assume in base year 1990,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has fallen 7 percent and the price index for imports has risen by 5 percent.What is the value of the U.S.net barter terms of trade?

Which terms of trade concept emphasizes a nation's capacity to import?

When a nation's terms of trade deteriorates to the point where the nation is worse off after growth than before,the nation has experienced:

Which of the following areas would have countries which are more likely to use trade primarily as a vent for agricultural surplus? Southeast Asia

Which of the following countries is characterized by rapid growth in gross domestic product in industrial production and manufactured exports?

Which of the following was an empty and resource-rich land settled by the Europeans during the 1800s?

If a nation's terms of trade increases from ½ to 1,and consumption increases from a lower indifference curve to a higher one,this nation is experiencing immiserizing growth.

Which of the following is one of the three main advantages of an import-substitution industrialization strategy?

What type of international commodity agreement seeks to regulate the quantity of the commodity exported by each nation?

Which of the following long-term multilateral agreements stipulates the minimum price at which importing nations agree to buy and a maximum price at which exporting nations agree to sell specified amounts of the commodity?

Which of the following graphs reflects a balanced growth (the two axis represents two goods X and Y and the curves (I and II)represent the before and after growth position of the PPF)?

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Automatic Adjustments With Flexible and Fixed Exchange Rates

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters