The balance of trade can only worsen if income ____ relative to absorption ?

Related Mcqs:

1. According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?

   A. elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4 B. elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3 C. elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7 D. elasticity of demand for exports = 0.3; elasticity of...

2. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus B. is static; low; rise; deficit; C. falls; falls; falls; surplus D. rise; falls; rises; deficit...

3. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?

   A. 20 calculators increase B. 25 calculators decrease C. 25 calculators increase D. 30 calculators increase...

4. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

   A. falls; falls; falls; surplus B. is static; low; rises; deficit C. falls; rises; falls; surplus D. rises; falls; rises; deficit...

5. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches B. the Marshall Lerner approach C. the monetary approach D. the elasticities approach...

6. Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

   A. decreases, decreases B. decreases, increases C. increases, decreases D. increases, increases...

7. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. 1,600 computers, decrease, increase B. 1,600 computers, increase, decrease C. 1,200 computers, decrease, increase D. 1,200 computers, increase, decrease...

8. when the level of income _________ there will be a tendency for the trade balance to improve as imports?

   A. increase, increase B. falls, increase C. falls, fall D. increase, fall...

9. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion B. trade channeling C. trade creation and trade diversion D. trade creation...

10. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

    A. 30% B. 10% C. 70% D. 40%...