The International Economy And Globalization

A. differences in technology
B. differences in factor endowments
C. scale economies
D. All of the above

A. The external value of the currency would tend to fall
B. The external value of the currency would tend to rise
C. The injections from trade are greater then the withdrawals
D. Aggregate demand is increasing

A. The government intervenes to influence the exchange rate
B. The exchange rate should adjust to equate the supply and demand of the currency
C. The Balance of payments should always be in surplus
D. The Balance of payments will always equal the government budget

A. Decrease the domestic price of a product
B. Increase government earnings from tax
C. Increase the quantity of imports
D. Decrease domestic production

A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage

A. To protect infant industries
B. To increase the level of imports
C. To Protect strategic industries
D. To improve the balance of payments

A. balance of trade
B. comparative advantage
C. balance of payments
D. terms of trade

A. common market
B. free trade area
C. customs union
D. federation

A. Comparative advantage is achieved
B. Price elasticity of imports is unity and tariff revenue is maximized
C. import prices are the same as export prices
D. marginal social cost equals marginal social benefit

A. Side payments
B. Tariffs
C. subsidies
D. export quotas