Question 1

Economic growth could make a country worse off.

Accepted Answer

A) True 
 B)False

Question 2

The rarest migration pattern is for people to move permanently from

Accepted Answer

A)   poor countries to richer countries.
B)   poor countries to other poor countries.
C)   rich countries to poor countries.
D)   rich countries to other rich countries.E) A) and D)
F) B) and D)

Question 3

Economic growth at constant prices will never lead to a fall in the output of one good.

Accepted Answer

A) True 
 B)False

Question 4

If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF)  will

Accepted Answer

A)   expand outward but keep its original shape.
B)   expand outward largely in the direction of the labor intensive good.
C)   expand outward largely in the direction of the capital intensive good.
D)   not expand until capital grows.E) A) and B)
F) B) and D)

Question 5

The way in which growth occurs affects the pattern of trade of a country.

Accepted Answer

A) True 
 B)False

Question 6

policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.

Accepted Answer

A)   Comparative advantage
B)   Primary-export-led development
C)   Import-substitution development
D)   Inward-looking developmentE) B) and C)
F) A) and B)

Question 7

growth is said to occur when a country's welfare falls as the country grows.

Accepted Answer

A)   Protrade biased
B)   Antitrade biased
C)   Immizerizing
D)   Anti-neutralE) B) and D)
F) B) and C)

Question 8

policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Accepted Answer

A)   Comprehensive development
B)   Primary-export-led development
C)   Import-substitution development
D)   Outward-looking developmentE) C) and D)
F) B) and D)

Question 9

An example of direct foreign investment is given by

Accepted Answer

A)   the sale of U.S. government bonds to foreigners.
B)   the sale of General Motors bonds to foreigners.
C)   multinational corporations such as Ford.
D)   all of the above.E) A) and B)
F) A) and D)

Question 10

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

Accepted Answer

A) True 
 B)False

Question 11

would gain from expanded immigration.

Accepted Answer

A)   Domestic labor
B)   Domestic capital
C)   Both domestic labor and capital
D)   Neither domestic labor nor capitalE) All of the above
F) A) and B)

Question 12

If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will

Accepted Answer

A)   produce more of the labor intensive good and less of the capital intensive good.
B)   produce more of both goods.
C)   produce the same amount of both goods.
D)   produce less of the labor intensive good and more of the capital intensive good.E) A) and C)
F) A) and B)

Question 13

Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods.

Accepted Answer

A) True 
 B)False

Question 14

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Accepted Answer

A) True 
 B)False

Question 15

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors.

Accepted Answer

A) True 
 B)False

Question 16

would likely oppose policies that allowed foreign workers to immigrate more freely.

Accepted Answer

A)   Domestic labor
B)   Domestic capital
C)   Both domestic labor and capital
D)   Neither domestic labor nor capitalE) B) and D)
F) B) and C)

Question 17

Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape.

Accepted Answer

A) True 
 B)False

Question 18

The movement of production to affiliate firms outside of the country is known as outsourcing.

Accepted Answer

A) True 
 B)False

Question 19

Recently, many developing countries throughout the world have begun to institute policies that seek to

Accepted Answer

A)   liberalize international trade by lowering trade barriers.
B)   reduce dependence on international trade by raising trade barriers.
C)   reduce dependence on international trade by instituting laws that call for buying only domestically made goods.
D)   Two of the above.E) A) and B)
F) A) and C)

Exam 10: International Trade and Economic Growth

The rarest migration pattern is for people to move permanently from

Correct Answer
verified

Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape.

Correct Answer
verified

The way in which growth occurs affects the pattern of trade of a country.

Correct Answer
verified

policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.

Correct Answer
verified

Economic growth could make a country worse off.

Correct Answer
verified

Recently, many developing countries throughout the world have begun to institute policies that seek to

Correct Answer
verified

An example of direct foreign investment is given by

Correct Answer
verified

If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF) will

Correct Answer
verified

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors.

Correct Answer
verified

Economic growth at constant prices will never lead to a fall in the output of one good.

Correct Answer
verified

Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods.

Correct Answer
verified

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

Correct Answer
verified

would likely oppose policies that allowed foreign workers to immigrate more freely.

Correct Answer
verified

growth is said to occur when a country's welfare falls as the country grows.

Correct Answer
verified

would gain from expanded immigration.

Correct Answer
verified

The movement of production to affiliate firms outside of the country is known as outsourcing.

Correct Answer
verified

If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will

Correct Answer
verified

policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Correct Answer
verified

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Correct Answer
verified

Exam 10: International Trade and Economic Growth

The rarest migration pattern is for people to move permanently from

Correct AnswerverifiedShow Answer

Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape.

Correct AnswerverifiedShow Answer

The way in which growth occurs affects the pattern of trade of a country.

Correct AnswerverifiedShow Answer

policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.

Correct AnswerverifiedShow Answer

Economic growth could make a country worse off.

Correct AnswerverifiedShow Answer

Recently, many developing countries throughout the world have begun to institute policies that seek to

Correct AnswerverifiedShow Answer

An example of direct foreign investment is given by

Correct AnswerverifiedShow Answer

If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF) will

Correct AnswerverifiedShow Answer

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors.

Correct AnswerverifiedShow Answer

Economic growth at constant prices will never lead to a fall in the output of one good.

Correct AnswerverifiedShow Answer

Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods.

Correct AnswerverifiedShow Answer

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

Correct AnswerverifiedShow Answer

would likely oppose policies that allowed foreign workers to immigrate more freely.

Correct AnswerverifiedShow Answer

growth is said to occur when a country's welfare falls as the country grows.

Correct AnswerverifiedShow Answer

would gain from expanded immigration.

Correct AnswerverifiedShow Answer

The movement of production to affiliate firms outside of the country is known as outsourcing.

Correct AnswerverifiedShow Answer

If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will

Correct AnswerverifiedShow Answer

policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Correct AnswerverifiedShow Answer

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Correct AnswerverifiedShow Answer

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