Hw1_AK - Econ 4401 International Economics Deniz Cicek...

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Econ 4401 International Economics University of Minnesota Deniz Cicek Fall 2009 Assignment 1-Answer Key (Maximum Points: 100) Multiple-Choice Questions (Each question is worth 3 points. Explanation is not required) 1. The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that (a) GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located. (b) GNP is always bigger than GDP. (c) GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located. (d) Two of the above are true. 2. Which of the following is true? (a) Much of the trade of the European Union (EU) countries is with EU countries. (b) Industrialized countries tend to trade relatively little and largely with developing countries. (c) Developing countries in Africa and South America tend to trade the most and largely with themselves. (d) All of the above are true. 3. ________ analysis by economists refers to the attempt to answer questions such as what are the effects of a tax on production and consumption decisions. (a) Positive (b) Negative (c) Normative (d) Investigative Answer questions 4-6 based on the following PPF. 4. The relative price of S (in terms of T), P S /P T , is (a) 2. (b) ½. (c) 500. (d) 1000. 1
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5. The relative price of T (in terms of S), P T /P S , is (a) 2. (b) ½. (c) 500. (d) 1000. 6. If the relative price of T were to increase, then the price line would (a) shift out in a parallel fashion. (b) shift in a parallel fashion. (c) become steeper. (d) become flatter. 7. In autarky, when a community maximizes its standard of living, its consumption point is (a) below the production possibility frontier. (b) on the production possibility frontier. (c) above the production possibility frontier. (d) cannot tell without more information. Answer questions 8-11 based on the following diagram 8. In autarky, the economy would be in general equilibrium at point (a) I.
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This note was uploaded on 03/06/2012 for the course BIOL 2107 taught by Professor J.louten during the Spring '10 term at SPSU.

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Hw1_AK - Econ 4401 International Economics Deniz Cicek...

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