Ch6_2 - Name: _ Date: _ 1. When imports and exports for the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ___________________________________ Date: ______________ 1. When imports and exports for the same type of good are nearly equal: A) the laws of comparative advantage break down. B) it is an indication that nearly all the trade is “intra-industry.” C) exports are probably just “finished” in the nation instead of being fully sourced there. D) there is a very low level of intra-industry trade. 2. The calculation that tells us the proportion of trade in each product involving both imports and exports is: A) the index of overlapping production. B) the index of effective trade. C) the index of intra-industry trade. D) the index of displacement. 3. The index of intra-industry trade is calculated as: A) the minimum of imports and exports divided by the average of imports and exports. B) the maximum of imports and exports divided by the sum of imports and exports. C) imports divided by exports. D) imports plus exports divided by the average of imports and exports. 4. Suppose that industry X and Y have intra-industry trade indexes equal to 0.80 and 0.20, respectively. Which statement below is correct? A) There is a greater share of intra-industry trade in industry X than in industry Y. B) There is a greater share of intra-industry trade in industry Y than in industry X. C) Industries X and Y have equal shares of intra-industry trade. D) There is no intra-industry trade in either industry X or Y. 5. For which product below would you expect the index of intra-industry trade to be lowest? A) golf clubs B) automobiles C) whiskey D) natural gas Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. If the index of intra-industry trade is high, products are probably ______, and costs in both nations are ______. A) identical; different B) differentiated; similar C) identical; similar D) differentiated; different 7. What is the value of the index of intra-industry trade for an industry in which exports are $100 million and imports are $200 million? A) 100/300 = 0.33 B) (100 + 200) / 100 = 3.00 C) 100 / [1/2 × (100 + 200)] = 0.67 D) 100 / 200 = 0.50 8. What is the value of the intra-industry trade index for an industry in which exports are $100 million and imports are $100 million? A) 100/200 = 0.50 B) (100 + 100) / 100 = 2.00 C) 100 / [1/2 × (100 + 100)] = 1.00 D) (100 – 100) / 100 = 0.00 9. What is the value of the intra-industry trade index for an industry in which exports are $200 million and imports are $20 million? A) 2.00
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/24/2010 for the course ECN ECN 162 taught by Professor Inna during the Winter '09 term at UC Davis.

Page1 / 8

Ch6_2 - Name: _ Date: _ 1. When imports and exports for the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online