Reference no: EM131161147
1. Which of these is an example of specialization?
a) German socks b) French watches c) Japanese cigars d) Scottish whisky
2. Investment by firms like Toyota in UK factories is an example of
a) Dumping b) Sovereign tax breaks c) Foreign direct investment d) Trade specialization
3. A possible downside to introducing trade barriers like tariffs is
a) Consumers will save more b) Other countries will retaliate c) Import prices will fall d) Competitors will resort to dumping
4. An argument in favour of imposing trade barriers is that they may
a) Encourage more imports b) Result in greater consumer choice c) Avoid international law d) Protect new or small industries
5. What provides the greatest gain from international trade?
a) Collaboration b) Specialization c) Investment d) Opportunity Cost
6. When one producer can create a given amount of output with fewer inputs, what exists?
a) Comparative advantage b.) Comparative disadvantage c.) Absolute advantage d.) Absolute disadvantage
7. Contolia can make 20 tractors or 10 litres of milk in a day. Magnolia can make 100 tractors or 20 litres of milk in a day. Which country has a comparative advantage in making tractors?
8. An increase in technology will allow a nation to produce more
a) Even if it does not have more land, labour or capital b) Only if it has more of all factors of production c) Only if it has more land d) Only if it has more labour e) Only if it has more capital
9. Consider the following statement: ôAfter the government of Syldavia caused the currency, the Kroona, to appreciate, citizens began wondering when the government would raise the price level as well.ö Comment briefly on this statement giving clear reasons.
10. A nation has a working age population of 100 million, with 85 million working and 10 million unemployed but not seeking work. The labour force participation rate is
a) 85% b) 90% c) 10% d) 95% e) 11.17%
|
The FOMC decreases its target federal funds rate
: If at its next policy meeting the FOMC decreases its target federal funds rate, Describe the open market operations the Fed would enact to achieve a lower federal funds rate. Explain the effect this policy action is likely to have on the exchange rat..
|
|
How may the too-big-to-fail policy practiced by regulators
: Explain carefully why a bank with FDIC insured depositors may have an incentive to take more risk than they would without such insurance? How may the too-big-to-fail policy practiced by regulators affect the incentive for banks to take risk? Explain.
|
|
What are some differences between goods and services
: Name some goods or services that are traded internationally. Name some goods or services that are not traded internationally. What are some differences between goods and services that are traded and goods and services that are not traded?
|
|
Calculate the deadweight loss of this tax when
: The market demand for glue is Q = 240 û 6P, and the government intends to place a $4 per unit tax on producers. Calculate the deadweight loss of this tax when:
|
|
Example of specialization
: Which of these is an example of specialization? Investment by firms like Toyota in UK factories is an example of. When one producer can create a given amount of output with fewer inputs, what exists? A nation has a working age population of 100 mill..
|
|
What are some possibly misleading statistics
: The City of Ocelot has received three proposals for the development of currently vacant land near a freeway exit and about a mile from the nearest residential neighborhood. In particular, what are some matters suitable for quantitative analysis that ..
|
|
Create an audit report on your first three periods
: create an audit report on your first three periods.- In the Airline simulation, management is required to report to the stockholders on a regular basis.
|
|
Consume nondurables out of permanent income
: What would be the value of the multiplier derived from a naïve regression of consumption on income, and what would be the true value?
|
|
Perform a durbin-wu-hausman test to evaluate
: Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.
|