MIDTERM_231_fall_2010

MIDTERM_231_fall_2010 - PART A: Multiple Choice Questions [...

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PART A: Multiple Choice Questions [ 1 x 8 = 8 marks] 1. An import tariff imposed by a large country ………………. its terms of trade and an export subsidy …………………. .its terms of trade. a. worsens, worsens. b. worsens,improves. c. improves, worsens. d. improves, improves. e. improves, does not change. 2. Immiserizing growth could occur to a. a country experiencing import –biased growth b. a country experiencing capital-intensive biased growth c. a country experiencing export-biased growth d. a country experiencing growth in its scarce factor 3. A transfer payment …………. . the donor’s terms of trade if the donor has ………………. . marginal propensity to spend on its export good than the recipient. a. improves, a higher b. improves, a lower c. worsens, a higher d. worsens, a lower 4 . Intra-industry trade will tend to dominate trade flows when which of the following exists? a. constant cost industries b. large differences between relative country factor availabilities c. small differences between relative country factor availabilities d. homogenous products that can not be differentiated 5) Rapidly growing developing countries tend to be borrowers on the international capital markets. From this information we may surmise that they have a comparative advantage
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This note was uploaded on 05/23/2011 for the course ECON 231 taught by Professor Rus during the Fall '08 term at Waterloo.

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MIDTERM_231_fall_2010 - PART A: Multiple Choice Questions [...

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