Chap011

Chap011 - Chapter 11 - Economic Growth and International...

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Chapter 11 - Economic Growth and International Trade Chapter 11 Economic Growth and International Trade Multiple Choice Questions 1. In the analysis of growth and trade, if a country's national income growth leads to an absolute increase in imports but to a slower relative growth in imports than in national income, this growth pattern is called __________ growth. A . Antitrade biased b. Protrade biased c. Ultra-antitrade biased d. Neutral 2. Growth of the scarce factor in the large-country case will, other things equal, a. Always expand trade and improve the terms of trade b. Expand both exports and imports and lead to an improvement in the terms of trade c. Result in a protrade production effect and a deterioration in the terms of trade D . Result in an ultra-antitrade production effect and an improvement in the terms of trade 3. If population growth is taking place, a. One can no longer meaningfully compare community indifference curves to evaluate the impact of growth and trade b. The growth in population must be accompanied by increased capital stock or changes in technology if social welfare is to increase (if increasing returns to scale are not present) c. The production-possibilities frontier will shift out relatively more for the labor- intensive good than for the capital-intensive good D . All of the above 4. Other things equal, which one of the following types of growth in a large country will have the most adverse impact upon that country's terms of trade? a. Ultra-antitrade growth b. Antitrade growth c. Protrade growth D . Ultra-protrade growth 11-1
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Chapter 11 - Economic Growth and International Trade 5. Which one of the following factors would likely NOT contribute to a worsening of the terms of trade of developing countries? a. Heavy reliance on primary product exports
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This note was uploaded on 11/27/2009 for the course ECON 421 taught by Professor Macphee,c during the Spring '08 term at UNL.

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Chap011 - Chapter 11 - Economic Growth and International...

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