IEP Midterm 1
the criticism of the anti-globalization movement is
is only partly correct
Which of the following statements about globalization is false
it benefits all people
if only the supply of labor increases in a nation, the nation's production frontier shifts
more along the axis measuring the L-intensive commodity
according to the Stopler-Samuelson theorem, international trade leads to
reduction in the real income of the nation's relatively scarce factor
international trade was an engine of growth for the
regions of recent settlements during the 19th century
at a relative commodity price above equilibrium
the commodity price will fall
Ricardo explained the law of comparative advantage on the basis of
the labor theory of value
international trade is most important to the standard of living of
Switzerland
international trade is similar to interregional trade is that both must overcome
distance and space
which is not an advantage of export-proeinted industrialization
domestic industries grow accustomed to protection and have an incentive to become more efficient
International trade theory refers to
the microeconomic aspects of international trade
trasport costs
all of the above
Immizerising growth refers to a
decrease in the welfare of a nation with growth
The mercantilists did not advocate
free trade
Economic interdependence is greater for
small nations
The Ricardian trade model has been empirically
verified
with reference to the statement of Q6, the range of mutually beneficial trade between nation A and B is:
3Y<3X<9Y
If in a two-nation, two-commodity world, it is established that nation A has a comparative advantage in commodity X, then nation B must have
a comparative advantage in commodity Y
International economics deals with
all of the above
a deterioration of a nation's terms of trade causes the nation's welfare to
any of the above
from empirical studies, we conclude that the H-O theory
can generally be accepted
which of the following products are not produced at all in the United States
coffee, tea, cocoa
the commodity in which the nation has the smallest absolute disadvantage is the commodity of its
comparative advantage
if the terms of trade increase in a two-nation world, those of the trade partnerL
deteriorate
Over time, the economic interdependence of nations has
grown
an increase in the dollar price of a foreign currency usually
benefits US exporters
which of the following is not true for a nation that is in equilibrium in isolation
it consumes inside its production frontier
which of the following is not the subject matter of international finance
the basis and the gains from trade
Mutually beneficial trade cannot occur if production frontiers are
the same and tastes are also the same
In the trade between a small and a large nation
the small nation is likely to receive all of the gains from trade
Q6 If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y
Nation A has a comparative advantage in commodity X
according to Adam Smith, international trade was based on
absolute advantage
A difference in relative commodity prices between two nations can be based upon a difference in
all of the above
If actual Px/Py exceeds the equilibrium relative Px/Py with trade
all of the above
If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B
all of the above
The marginal rate of transformation of X for Y refers to:
all of the above
Which of the following statements is true with respect to the MRS of X or Y
all of the above
With free trade under increasing costs
all of the above
With reference to the statement in Q6
all of the above
a difference in relative commodity prices between nations can be based on a difference in
all of the above
a great deal of international trade
all of the above
according to traditional trade theory, a developing nation should esport the commodity
all of the above
community indifference curves
all of the above
international trade can be based on economies of scale even if both nations have identical
all of the above
perfect international mobility of factors of production
all of the above
the anti-globalization movement blames globalization for
all of the above
trade cannot be an engine of growth for todays' developing nations because
all of the above
what is the advantage of a policy of import substitution
all of the above
while of the following statements is true with regard to the product-cycle theory
all of the above
the marginal rate of substitution of X for Y in consumption refers to theL
amount of Y that a nation must give up for one extra unit of X and still remain on the same indifference curve
if the price of a nation's exports and imports both rise, the nation's commodity terms of trade
any of the above
The H-O model extends the classical trade model by
both
A production frontier that is concave indicates that the nation incurs increasing opportunity costs in the production of
both commodities
According too the H-O theory, trade reduces international different in
both commodity and factor prices
in the H-O model, international trade is based mostly on a difference in
factor endowments
those nations that liberalized trade during the past decade
grew faster than those that did not
which of the follow is false with regard to the specific factors theorem, international trade
harms the immobile factors that are specific to the nation's export commodities or sectors
The Leontif paradox refers to the empirical finding that US
import substitutes were more K-intensive than exports
intra-industry trade takes place
in order to take advantage of economies of scale
the nations commodity terms of trade times the quantity index of its export sector gives the nation's
income terms of trade
developing nations often experience wildly fluctuating export prices for their primary products because of
inelastic and unstable demand and supply
Which of the following statements with regard to international economics is true
it is a relatively old field
the policy of import substitution was most vigorously followed by
large developing nations during the 1960s
a nation is said to have an relative abundance of K if it has a
lower price of K in relation to the price of L
the opening or expansion of international trade usually affects all member of society
most positively but some negatively
If the internal Px/Py is lower in nation 1 than in nation without trade:
nation 2 has a comparative advantage in commodity Y
with reference to the statement in Q6, if 3X is exchanged for 3Y
nation B gains 6Y
empirical studies have found that, in general, the export instability faced by developing nations was
not very large and did not seriously interfere with development
which of the following is not part of the demand for a NIEO
preferential access for the manufactured exports of developed nations
The Ricardian model was tested empirically in terms of difference in
relative labor productivities and costs in carious industries among nations
When a nation's commodity terms of trade deteriorate and its income terms of trade improve, the nation's welfare
rises
What proportion of international trade is based on absolute advantage
some
Which of the following is not a reason for increasing opportunity cost
technology differs among nations
which of the following statements is true
the price of the nation's import commodity will fall as a result of international trade
a rough measure of the degree of economic interdependence of a nation is given by
the ratio of a nation's imports and exports to it GDP