Question 1

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

Question 2

The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall.This is because Ricardo's theory did not recognize how market prices are influenced by:

Accepted Answer

A)  Demand conditions 
B)  Supply conditions 
C)  Business expectations 
D)  Profit patterns 
A)  Demand conditions 
B)  Supply conditions 
C)  Business expectations 
D)  Profit patterns

Question 3

Will it be impossible to keep low-skilled jobs in the U.S.?

Accepted Answer

If tax credits or other incentives are m

Question 4

If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:

Accepted Answer

A)  Trade would depend on differences in demand conditions 
B)  Trade would depend on economies of large-scale production 
C)  Trade would depend on the use of different currencies 
D)  There would be no basis for gainful trade 
A)  Trade would depend on differences in demand conditions 
B)  Trade would depend on economies of large-scale production 
C)  Trade would depend on the use of different currencies 
D)  There would be no basis for gainful trade

Question 5

The terms of trade represents the rate of exchange between a country's exports and imports.

Accepted Answer

A) True 
 B)False

Question 6

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

The commodity terms of trade measures

The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall.This is because Ricardo's theory did not recognize how market prices are influenced by:

Will it be impossible to keep low-skilled jobs in the U.S.?

If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:

The terms of trade represents the rate of exchange between a country's exports and imports.

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

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

Balance-of-payments Adjustments

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

The commodity terms of trade measures

The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall.This is because Ricardo's theory did not recognize how market prices are influenced by:

Will it be impossible to keep low-skilled jobs in the U.S.?

If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:

The terms of trade represents the rate of exchange between a country's exports and imports.

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

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

Balance-of-payments Adjustments

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