MultiplechoiceCh5

MultiplechoiceCh5 - Chapter 5: The Standard Trade Model 1....

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The Standard Trade Model 1. The concept “terms of trade” means A. the amount of exports sold by a country. B. the price conditions bargained for in international markets. C. the price of a country's exports divided by the price of its imports. D. the quantities of imports received in free trade. E. None of the above. 2. If P C / P F were to increase in the international marketplace, then A. all countries would be better off. B. the terms of trade of cloth exporters improve. C. the terms of trade of food exporters improve. D. the terms of trade of all countries improve. E. None of the above 3. If P C / P F were to increase, A. world relative quantity of cloth supplied and demanded increases. B. world relative quantity of cloth supplied and demanded decreases. C. world relative quantity of cloth supplied increases. . D. world relative quantity of cloth demanded decreases . E. None of the above. 4. When the production possibility frontier shifts out relatively more in one direction, we have A. biased growth. B. unbiased growth. C. immiserizing growth. D. balanced growth. E. imbalanced growth. 5. Export-biased growth in Country H will A. improve the terms of trade of Country H. B. trigger anti-bias regulations of the WTO. C. worsen the terms of trade of Country F (the trade partner). D. improve the terms of trade of Country F. E. decrease economic welfare in Country H. 6. If the poor AID recipient countries have a higher marginal propensity to consume each and every product than does the United States, then such aid will A. worsen the U.S. terms of trade. 56
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This note was uploaded on 02/23/2011 for the course ECON 301 taught by Professor S.chiu during the Spring '11 term at HKU.

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MultiplechoiceCh5 - Chapter 5: The Standard Trade Model 1....

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