ECO 305 WK 1 Homework Ch 2 - 12(a-b),13(a-c),14 Click Link Below To Download : http://strtutorials.com/ECO-305-WK-1-Homework-Ch-2-12-a-b-13-a-c-14-ECO3051.htmHomework: Chapter 2: 12(a-b), 13(a-c), 14ECO 305 WK 2 Quiz 1 - Chapters 1 and 2 - All Possible QuestionsClick Link Below To Download :http://strtutorials.com/ECO-305-WK-2-Quiz-1-Chapters-1-and-2-All-Possible-Questions-ECO3053.htmECO 305 WK 2 Quiz 1 - Chapters 1 and 2
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ECO 305 WK 1 Homework Ch 2 - 12(a-b),13(a- c),14 Click Link Below To Download : http://strtutorials.com/ECO-305-WK-1-Homework-Ch-2-12-a-b-13-a- c-14-ECO3051.htm Homework: Chapter 2: 12(a-b), 13(a-c), 14 ECO 305 WK 2 Quiz 1 - Chapters 1 and 2 - All Possible Questions Click Link Below To Download : http://strtutorials.com/ECO-305-WK-2-Quiz-1-Chapters-1-and-2-All- Possible-Questions-ECO3053.htm ECO 305 WK 2 Quiz 1 - Chapters 1 and 2 MULTIPLE CHOICE 1. A primary reason why nations conduct international trade is because: a. Some nations prefer to produce one thing while others produce other things b. Resources are not equally distributed among all trading nations c. Trade enhances opportunities to accumulate profits d. Interest rates are not identical in all trading nations
1. A primary reason why nations conduct international trade is because:a. Some nations prefer to produce one thing while others produce other thingsb. Resources are not equally distributed among all trading nationsc. Trade enhances opportunities to accumulate profitsd. Interest rates are not identical in all trading nations 2. A main advantage of specialization results from:a. Economies of large-scale productionb. The specializing country behaving as a monopolyc. Smaller production runs resulting in lower unit costsd. High wages paid to foreign workers
3. International trade in goods and services is sometimes used as a substitute for all of the following except:a. International movements of capitalb. International movements of laborc. Domestic production of the same goods and servicesd. Domestic production of different goods and services 4. If a nation has an open economy, it means that the nation:a. Allows private ownership of capitalb. Has flexible exchange ratesc. Has fixed exchange ratesd. Conducts trade with other countries 5. International trade forces domestic firms to become more competitive in terms of:a. The introduction of new productsb. Product design and qualityc. Product priced. All of the above 6. The movement to free international trade is most likely to generate short-term unemployment in which industries?a. Industries in which there are neither imports nor exportsb. Import-competing industriesc. Industries that sell to domestic and foreign buyersd. Industries that sell to only foreign buyers 7. International trade is based on the idea that:a. Exports should exceed importsb. Imports should exceed exportsc. Resources are more mobile internationally than are goodsd. Resources are less mobile internationally than are goods 8. Arguments for free trade are sometimes disregarded by politicians because:a. Maximizing domestic efficiency is not considered importantb. Maximizing consumer welfare may not be a chief priorityc. There exist sound economic reasons for keeping one's economy isolated from other
economiesd. Economists tend to favor highly protected domestic markets
9. How much physical output a worker producers in an hour's work depends on:a. The worker's motivation and skillb. The technology, plant, and equipment in usec. How easy the product is to manufactured. All of the above 10. The largest amount of trade with the United States in recent years has been conducted by:a. Canadab. Germanyc. Chiled. United Kingdom 11. Increased foreign competition tends to:a. Intensify inflationary pressures at homeb. Induce falling output per worker-hour for domestic workersc. Place constraints on the wages of domestic workersd. Increase profits of domestic import-competing industries
ECO 305 WK 3 Quiz 2 - Chapters 3 and 4 - All Possible Questions
MULTIPLE CHOICE
1. Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used?a. The Linder theoryb. The product life cycle theoryc. The MacDougall theoryd. The Heckscher-Ohlin theory
2. According to Staffan Linder, trade between two countries tends to be most pronounced when the countries:a. Find their tastes and preferences to be quite harmoniousb. Experience economies of large-scale production over large output levelsc. Face dissimilar relative abundances of the factors of productiond. Find their per capita income levels to be approximately the same
3. Which of the following is a long-run theory, emphasizing changes in the trading position of a nation over a number of years?a. Theory of factor endowmentsb. Comparative advantage theoryc. Theory of the product cycled. Overlapping demand theory
4. The Leontief paradox questioned the validity of the theory of:a. Comparative advantageb. Factor endowmentsc. Overlapping demandsd. Absolute advantage
5. Which of the following would least likely apply to the product life cycle theory?a. Calculators and computersb. Coal and crude oilc. Home movie camerasd. Office machinery
6. Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?a. Productivities of labor inputsb. Tastes and preferences among nationsc. Changes in technologies over timed. Quantities of economic resources
7. Concerning the influence that transportation costs have on the location of industry, which of the following industries has generally attempted to locate production facilities close to resource supplies?a. Autosb. Steelc. Soft drinksd. Valuable electronics goods
8. Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of:a. Laborb. Landc. Both labor and landd. Neither labor nor land
9. When considering the effects of transportation costs, the conclusions of our trade model must be modified. This is because transportation costs result in:a. Lower trade volume, higher import prices, smaller gains from tradeb. Lower trade volume, lower import prices, smaller gains from tradec. Higher trade volume, higher import prices, smaller gains from traded. Higher trade volume, lower import prices, greater gains from trade
10. Most economists maintain that the major factor underlying wage stagnation in the United States in the 1990s has been:a. Import competitionb. Technological changec. Rising real value of the minimum waged. Increasing union membership
11. Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price difference for autos between Japan and Canada. Trade in autos is:a. Impossibleb. Possiblec. Highly profitabled. Moderately profitable
12. Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stresses differences in:a. Income levels among countriesb. Tastes and preferences among countriesc. Resource endowments among countriesd. Labor productivities among countries
ECO 305 WK 5 Quiz 4 - Chapter 7 - All Possible Questions
1. Which of the following is not a major factor that encourages developing nations to form international commodity agreements?a. Inelastic commodity supply schedulesb. Inelastic commodity demand schedulesc. Export markets that tend to be unstabled. Secular increases in their terms of trade
2. International commodity agreements do not:a. Consist of consuming and producing nations who desire market stabilityb. Levy export cutbacks so as to offset rising commodity pricesc. Utilize buffer stocks to generate commodity price stabilityd. Increase the supply of commodities to prevent rising prices
3. Concerning the price elasticities of supply and demand for commodities, empirical estimates suggest that most commodities have:a. Inelastic supply schedules and inelastic demand schedulesb. Inelastic supply schedules and elastic demand schedulesc. Elastic supply schedules and inelastic demand schedulesd. Elastic supply schedules and elastic demand schedules
4. If the demand schedule for bauxite is relatively inelastic to price changes, an increase in the supply schedule of bauxite will cause a:a. Decrease in price and a decrease in sales revenueb. Decrease in price and an increase in sales revenuec. Increase in price and a decrease in sales revenued. Increase in price and an increase in sales revenue
5. A primary goal of international commodity agreements has been the:a. Maximization of members' revenues via export taxesb. Nationalization of corporations operating in member nationsc. Adoption of tariff protection against industrialized nation sellersd. Moderation of commodity price fluctuations when markets are unstable
6. Which device has the International Tin Agreement utilized as a way of stabilizing tin prices?
a. Multilateral contractsb. Export subsidiesc. Buffer stocksd. Export tariffs
7. Which method has not generally been used by the international commodity agreements to stabilize commodity prices?a. Production quotas applied to the level of commodity outputb. Buffer stock arrangements among producing nationsc. Export restrictions applied to international sales of commoditiesd. Measures to nationalize foreign-owned production operations
8. The OPEC nations during the 1970s manifested their market power by utilizing:a. Export tariffs levied for revenue purposesb. Export tariffs levied for protective purposesc. Import tariffs levied for protective purposesd. Import tariffs levied for revenue purposes
9. One factor that has prevented the formation of cartels for producers of commodities is that:a. The demand for commodities tends to be price inelasticb. Substitute products exist for many commoditiesc. Commodity produces have been able to dominate world marketsd. Production of most commodities is capital intensive
10. Which device has been used by the International Wheat Agreement to stipulate the minimum prices at which importers will buy stipulated quantities from producers and the maximum prices at which producers will sell stipulated quantities to importers?a. Buffer stocksb. Export controlsc. Multilateral contractsd. Production controls
11. If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue, they believe that the demand for bauxite:a. Is inelastic with respect to price changesb. Is elastic with respect to price changes
c. Will increase in response to a price increased. Will not change in response to a price change
1. The European Union is primarily intended to permit:a. Countries to adopt scientific tariffs on importsb. An agricultural commodity cartel within the groupc. The adoption of export tariffs for revenue purposesd. Free movement of resources and products among member nations
2. Which of the following represents the stage where economic integration is most complete?a. Economic unionb. Customs unionc. Monetary uniond. Common market
3. Which of the following represents the stage where economic integration is least complete?a. Free trade areab. Monetary unionc. Common market
4. Customs union theory reasons that the formation of a customs union will decrease members' real welfare when the:a. Trade diversion effect exceeds the trade creation effectb. Trade production effect exceeds the trade consumption effectc. Trade consumption effect exceeds the trade production effectd. Trade creation effect exceeds the trade diversion effect
5. Which economic integration scheme is solely intended to abolish trade restrictions among member countries, while setting up common tariffs against nonmembers?a. Economic unionb. Common marketc. Free trade aread. Customs union
6. By 1992 the European Union had become a full-fledged:a. Economic unionb. Monetary unionc. Common marketd. Fiscal union
7. Which device has the European Union used to equalize farm-product import prices with politically determined European Union prices, regardless of shifts in world prices?a. Variable leviesb. Import quotasc. Import subsidiesd. Domestic content regulations
8. Which trade instrument has the European Union used to insulate its producers and consumers of agricultural goods from the impact of changing demand and supply conditions in the rest of the world?a. Domestic content regulationsb. Variable import leviesc. Voluntary export quotasd. Orderly marketing agreements
9. Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in question. Which effect could not occur for the participating countries?a. Trade creation-production effectb. Trade creation-consumption effectc. Trade diversiond. Scale economies and competition
10. Which organization of nations permits free trade among its members in industrial goods, while each member maintains freedom in its trade policies toward non-member countries?a. European Unionb. Beneluxc. Council for Mutual Economic Assistanced. North American Free Trade Association
11. Which of the following organizations is considered a regional trading arrangement?a. Organization of Petroleum Exporting Countriesb. North Atlantic Treaty Organizationc. Beneluxd. International Tin Agreement
ECO 305 WK 7 Quiz 6 - Chapter 9 - All Possible Questions
MULTIPLE CHOICE
1. "Risk spreading" is a motive most likely to be served when firms undergo:a. Horizontal integrationb. Vertical integrationc. Conglomerate integrationd. None of the above
2. The source (home) location of most of the world's leading multinational enterprises is:a. North America and Europeb. North America and Asiac. Europe and South Americad. Europe and Asia
3. Which type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate goods going into the production of finished goods?a. Forward vertical integrationb. Backward vertical integrationc. Forward horizontal integrationd. Backward horizontal integration
4. Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles. This practice is referred to as:a. Forward vertical integrationb. Forward conglomerate integrationc. Backward vertical integrationd. Backward conglomerate integration
5. Suppose that a steel manufacturer headquartered in Japan sets up a subsidiary in Canada to produce steel. This practice is referred to as:a. Conglomerate integrationb. Forward vertical integrationc. Backward vertical integrationd. Horizontal integration
6. During the 1970s, American oil companies acquired nonenergy companies (e.g., copper, auto components) in response to anticipated decreases in investment opportunities in oil. This type of diversification is referred to as:a. Horizontal integrationb. Conglomerate integrationc. Forward vertical integrationd. Backward vertical integration
7. Which of the following best refers to the outright construction or purchase abroad of productive facilities, such as manufacturing plants, by domestic residents?a. Direct investmentb. Portfolio investmentc. Short-term capital investmentd. Long-term capital investment
8. In recent years, the largest amount of U.S. direct investment abroad has occurred in:a. Central Americab. South Americac. Europed. Japan
9. In recent years, most foreign direct investment in the United States has come from:a. Western Europeb. Central Americac. South Americad. Asia
10. Most U.S. direct investment abroad occurs in:a. Communicationsb. Petroleumc. Finance and insuranced. Manufacturing
11. Most foreign direct investment in the United States occurs in:a. Public utilitiesb. Communicationsc. Manufacturingd. Mining and smelting
1. The relationship between the exchange rate and the prices of tradable goods is known as the:a. Purchasing-power-parity theoryb. Asset-markets theoryc. Monetary theoryd. Balance-of-payments theory
2. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals:a. 20 poundsb. 40 poundsc. 60 poundsd. 80 pounds
3. Low real interest rates in the United States tend to:a. Decrease the demand for dollars, causing the dollar to depreciateb. Decrease the demand for dollars, causing the dollar to appreciatec. Increase the demand for dollars, causing the dollar to depreciated. Increase the demand for dollars, causing the dollar to appreciate
4. High real interest rates in the United States tend to:a. Decrease the demand for dollars, causing the dollar to depreciateb. Decrease the demand for dollars, causing the dollar to appreciatec. Increase the demand for dollars, causing the dollar to depreciated. Increase the demand for dollars, causing the dollar to appreciate
5. Assume that the United States faces an 8 percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing-power parity theory, the dollar would be expected to:a. Appreciate by 8 percent against the yenb. Depreciate by 8 percent against the yenc. Remain at its existing exchange rated. None of the above
6. In the presence of purchasing-power parity, if one dollar exchanges for 2 British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost:
a. 200 poundsb. 400 poundsc. 600 poundsd. 800 pounds
7. If wheat costs $4 per bushel in the United States and 2 pounds per bushel in Great Britain, then in the presence of purchasing-power parity the exchange rate should be:a. $.50 per poundb. $1.00 per poundc. $2.00 per poundd. $8.00 per pound
8. A primary reason that explains the appreciation in the value of the U.S. dollar in the 1980s is:a. Large trade surpluses for the United Statesb. Relatively high inflation rates in the United Statesc. Lack of investor confidence in the U.S. monetary policyd. Relatively high interest rates in the United States
9. The high foreign exchange value of the U.S. dollar in the early 1980s can best be explained by:a. Additional investment funds made available from overseasb. Lack of investor confidence in U.S. fiscal policyc. Market expectations of rising inflation in the United Statesd. American tourists overseas finding costs increasing
10. When the price of foreign currency (i.e., the exchange rate) is below the equilibrium level:a. An excess demand for that currency exists in the foreign exchange marketb. An excess supply of that currency exists in the foreign exchange marketc. The demand for foreign exchange shifts outward to the rightd. The demand for foreign exchange shifts backward to the left
11. When the price of foreign currency (i.e., the exchange rate) is above the equilibrium level:a. An excess supply of that currency exists in the foreign exchange marketb. An excess demand for that currency exists in the foreign exchange marketc. The supply of foreign exchange shifts outward to the rightd. The supply of foreign exchange shifts backward to the left
ECO 305 WK 10 Quiz 9 - Chapters 14 & 15 - All Possible Questions
ECO 305 WK 10 Quiz 9 - Chapters 14 & 15 - All Possible Questions
MULTIPLE CHOICE
1. According to the absorption approach, the economic circumstances that best warrant a currency devaluation is where the domestic economy faces:a. Unemployment coupled with a payments deficitb. Unemployment coupled with a payments surplusc. Full employment coupled with a payments deficitd. Full employment coupled with a payments surplus
2. According to the J-curve effect, when the exchange value of a country's currency appreciates, the country's trade balance:a. First moves toward deficit, then later toward surplusb. First moves toward surplus, then later toward deficitc. Moves into deficit and stays thered. Moves into surplus and stays there
3. Assume that Brazil has a constant money supply and that it devalues its currency. The monetary approach to devaluation reasons that one of the following tends to occur for Brazil:a. Domestic prices rise--purchasing power of money falls--consumption fallsb. Domestic prices rise--purchasing power of money rises--consumption risesc. Domestic prices fall--purchasing power of money rises--consumption fallsd. Domestic prices fall--purchasing power of money rises--consumption rises
4. According to the Marshall-Lerner approach, a currency depreciation will best lead to an improvement on the home country's trade balance when the:a. Home demand for imports is inelastic--foreign export demand is inelasticb. Home demand for imports is inelastic--foreign export demand is elastic
c. Home demand for imports is elastic--foreign export demand is inelasticd. Home demand for imports is elastic--foreign export demand is elastic
5. Assume an economy operates at full employment and faces a trade deficit. According to the absorption approach, currency devaluation will improve the trade balance if domestic:a. Interest rates rise, thus encouraging investment spendingb. Income rises, thus stimulating consumptionc. Output falls to a lower leveld. Spending is cut, thus freeing resources to produce exports
6. An appreciation of the U.S. dollar tends to:a. Discourage foreigners from making investments in the United Statesb. Discourage Americans from purchasing foreign goods and servicesc. Increase the number of dollars that could be bought with foreign currenciesd. Discourage Americans from traveling overseas
7. The Marshall-Lerner condition deals with the impact of currency depreciation on:a. Domestic incomeb. Domestic absorptionc. Purchasing power of money balancesd. Relative prices
8. According to the J-curve concept, which of the following is false--that the effects of a currency depreciation on the balance of payments are:a. Transmitted primarily via the income adjusted mechanismb. Likely to be adverse or negative in the short runc. In the long run positive, given favorable elasticity conditionsd. Influenced by offsetting devaluations made by other countries
9. Which of the following is true for the J-curve effect? It:a. Applies to the interest rate effects of currency depreciationb. Applies to the income effects of currency depreciationc. Suggests that demand tends to be most elastic over the long rund. Suggests that demand tends to be least elastic over the long run
10. American citizens planning a vacation abroad would welcome:a. Appreciation of the dollarb. Depreciation of the dollarc. Higher wages extended to foreign workersd. Lower wages extended to foreign workers
11. Assume the Canadian demand elasticity for imports equals 0.2, while the foreign demand elasticity for Canadian exports equals 0.3. Responding to a trade deficit, suppose the Canadian dollar depreciates by 20 percent. For Canada, the depreciation would lead to a:a. Worsening trade balance--a larger deficitb. Improving trade balance--a smaller deficitc. Unchanged trade balanced. None of the above
ECO 305 WK 11 Quiz 10 - Chapters 16 & 17 - All Possible Question
ECO 305 WK 11 Quiz 10 - Chapters 16 & 17 - All Possible Question
MULTIPLE CHOICE
1. A nation experiences internal balance if it achieves:a. Full employmentb. Price stabilityc. Full employment and price stabilityd. Unemployment and price instability
2. A nation experiences external balance if it achieves:a. No net changes in its international gold stocksb. Productivity levels equal to those of its trading partnersc. An increase in its money supply equal to increases overseasd. Equilibrium in its balance of payments
3. A nation experiences overall balance if it achieves:a. Balance-of-payments equilibrium, full employment, and price stabilityb. Balance-of-payments equilibrium, maximum productivity, and price stabilityc. Full employment, price stability and no change in its money supplyd. Full employment, price stability, and maximum productivity
4. Most industrial countries generally considered ____ as the most important economic goal.a. External balanceb. Internal balancec. Maximum efficiency for businessd. Maximum efficiency for labor
5. Which policies are expenditure-changing policies?a. Currency devaluation and revaluationb. Import quotas and tariffsc. Monetary and fiscal policyd. Wage and price controls
6. Which policy is an expenditure-switching policy?a. Increase in the money supplyb. Decrease in government expendituresc. Increase in business and household taxesd. Decrease in import tariffs
7. An expenditure-increasing policy would consist of an increase in:a. Import tariffsb. Import quotasc. Governmental taxesd. The money supply
8. An expenditure-reducing policy would consist of a decrease in:a. The par value of a currencyb. Government expendituresc. Import duties
d. Business or household taxes
9. Given fixed exchange rates, assume Mexico initiates expansionary monetary and fiscal policies to combat recession. These policies will also:a. Increase both imports and exportsb. Increase exports and reduce importsc. Reduce a balance-of-payments surplusd. Reduce a balance-of-payments deficit
10. Given fixed exchange rates, assume Mexico initiates contractionary monetary and fiscal policies to combat inflation. These policies will also:a. Reduce a balance-of-payments surplusb. Reduce a balance-of-payments deficitc. Increases both imports and exportsd. Decrease both imports and exports
11. The appropriate expenditure-switching policy to correct a current account surplus is:a. Currency revaluationb. Currency devaluationc. Expansionary monetary policyd. Contractionary fiscal policy
