internaltional trade
1) From 1960 to 2009, (C)
A) the U.S. economy roughly tripled in size.
B) U.S. imports roughly tripled in size.
C) the share of US Trade in the economy roughly tripled in size.
D) U.S. Imports roughly tripled as compared to U.S. exports.
E) U.S. exports roughly tripled in size.
2) Ancient theories of international economics from the 18th and 19th Centuries are (C)
A) not relevant to current policy analysis.
B) are only of moderate relevance in today's modern international economy.
C) are highly relevant in today's modern international economy.
D) are the only theories that actually relevant to modern international economy.
E) are not well understood by modern mathematically oriented theorists.
3) Given the information in the table above, if wages were to double in Home, then Home should (A)
A) export cloth.
B) export widgets.
C) export both and import nothing.
D) export and import nothing.
E) export widgets and import cloth.
4) Given the information in the table above, Home's opportunity cost of widgets is (B)
A) 0.5
B) 2.0
C) 6.0
D) 1.5
E) 3.0
5) If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to the origin), then increased specialization in production by that country will (A)
A) increase the economic welfare of both countries.
B) increase the economic welfare of only Country A.
C) decrease the economic welfare of Country A.
D) decrease the economic welfare of Country B.
E) not affect the economic welfare of either country.
6) If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios), then if they both use the same currency (E)
A) neither country has a comparative advantage.
B) only the low wage country has a comparative advantage.
C) only the high wage country has a comparative advantage.
D) consumers will still find trade worth while from their perspective.
E) it is possible that both will
A) the U.S. economy roughly tripled in size.
B) U.S. imports roughly tripled in size.
C) the share of US Trade in the economy roughly tripled in size.
D) U.S. Imports roughly tripled as compared to U.S. exports.
E) U.S. exports roughly tripled in size.
2) Ancient theories of international economics from the 18th and 19th Centuries are (C)
A) not relevant to current policy analysis.
B) are only of moderate relevance in today's modern international economy.
C) are highly relevant in today's modern international economy.
D) are the only theories that actually relevant to modern international economy.
E) are not well understood by modern mathematically oriented theorists.
3) Given the information in the table above, if wages were to double in Home, then Home should (A)
A) export cloth.
B) export widgets.
C) export both and import nothing.
D) export and import nothing.
E) export widgets and import cloth.
4) Given the information in the table above, Home's opportunity cost of widgets is (B)
A) 0.5
B) 2.0
C) 6.0
D) 1.5
E) 3.0
5) If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to the origin), then increased specialization in production by that country will (A)
A) increase the economic welfare of both countries.
B) increase the economic welfare of only Country A.
C) decrease the economic welfare of Country A.
D) decrease the economic welfare of Country B.
E) not affect the economic welfare of either country.
6) If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios), then if they both use the same currency (E)
A) neither country has a comparative advantage.
B) only the low wage country has a comparative advantage.
C) only the high wage country has a comparative advantage.
D) consumers will still find trade worth while from their perspective.
E) it is possible that both will