ECON 4850
Since the start of Covid-19 Pandemic on March 2020, the U.S. Dollar has been gaining its value against basket of currencies has been losing its value against basket of currencies
has been losing its value against basket of currencies
Who was the first to develop the shipping container in 1950 and revolutionized the transport industry? Malcom McLean Eli Heckschner David Ricardo
Malcom McLean
What products does Europe produce for exports? Garment Oil Computer and electronics Motor vehicles and machinery
Motor vehicles and machinery
When the exchange rate Ra = 0.5 in the question in the video, is means One dollar can exchange with two British pound One dollar can exchange with half British pound One dollar can exchange with one British pound
One dollar can exchange with half British pound
According to the export condition, Country A can export more goods to Country B if which of the following happens? Workers in Country A has an increase in labor efficiency (a reduction in labor requirement) Currency in Country A depreciated against currency used in Country B Workers in Country A has a reduction in the wage rates All of the above
All of the above
The ways that we can use to determine the comparative advantaged include Using Autarky Price Ratio (APR) Using Relative Price Using slope of PPF All of the above options
All of the above options
Putting the value of aj/bj in ascending order, if the aj/bj value is located to the left of the "pointer", it means There will be no international trade between those two countries Country B should export good j to Country A Country A should export good j to Country B
Country A should export good j to Country B
If ax/ay < bx/by from the labor requirement table. Then we can get the following conclusion (multiple selection, select all correct answers): Country B has a comparative advantage in producing good Y (Px/Py)a < (Px/Py)b or the relative price of good X is lower in Country A Country A has a comparative advantage in producing good X Country A has a lower opportunity cost in good Y
Country B has a comparative advantage in producing good Y (Px/Py)a < (Px/Py)b or the relative price of good X is lower in Country A Country A has a comparative advantage in producing good X
Which economist developed the price-specie-flow mechanism theory which stated it is not possible for a nation to continue to maintain a positive balance of trade indefinitely David Ricardo Adam Smith David Hume
David Hume
Tinbergen's gravity equation for trade predicts that trade between countries are _____ related with the countries' GDPs, and _____ related with the distance between them. Positively, positively Positively, negatively Negatively, negatively Negatively, positively
Positively, negatively
As a country finds its worker's wage rate increase relative to another country, it becomes easier to sell its exports to the other country True False
False
Due to Covid-19 virus, the international trade on all products have fallen in 2020: True False
False
International Price of the World Price can be higher than importing country's Autarky Price or lower than exporting country's Autarky Price True False
False
Which of the following country has the largest openness index in trade? United States China Japan Singapore
Singapore
The slope of a country's PPF represents The opportunity cost of producing 1 unit cost of good on the horizontal axis A constant opportunity cost The opportunity cost of producing 1 unit of good on the vertical axis
The opportunity cost of producing 1 unit cost of good on the horizontal axis
Check all of the following reasons that can explain why nations trade with each other Transportation costs Labor and Capital endowment Language Proximity
Transportation costs Labor and Capital endowment Proximity
A country's Autarky Price Ratio is the price ratios when the country has no international trade True False
True
Mercantilists believed that exporting was good because it generated gold and silver for the national treasury and that importing was bad because it drained gold and silver from the national treasury True False
True
Since 2012, more and more persons attempting to cross from Mexico into the United States have been citizens of Guatemala, Honduras, and El Salvador: True False
True
The Wage Limits are the endpoints of the range in wage with which the wage can vary without eliminating the basis for trade and maintain the two way bilateral trade between countries True False
True
The Wage Rate Limits in multiple goods model can be found by equalizing the value of the "pointer" with the smallest and the largest aj/bj value in the model True False
True
U.S. runs a trade deficit in 2020: True False
True
Tesla opened a factory in Shanghai, China is counted as: China Foreign Direct Investment U.S. Foreign Direct Investment U.S. Exports Dumping Activity
U.S. Foreign Direct Investment
When you take a trip to Cancun, Mexico, the trip will be counted as __________________. U.S. services export and Mexico services import U.S. services import and Mexico services export
U.S. services import and Mexico services export
