INTERNATIONAL ECONOMICS 5TH
EDITION FEENSTRA EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ The Twenty Percent Solution
Answer: 20% of the worlds population consumes 80% of its
resources (highlights the extreme inequality in the global economic
system)
◉ Boomerang Effect
Answer: When a developed country provides technology or training
to a developing country, only for that country to use it to become a
competitor and "hit" the original country back in the global market
◉ Variable Export Restraint
Answer: limit of qty of goods an exporting country is allowed to
export to another country
◉ Tariff Jumping
Answer: when a company builds a factory inside a foreign country to
avoid taxes
, ◉ Steady-State Economy (SSE)
Answer: An economy where the aggregate throughput of matter and
energy is kept constant, conforming to the earth's behavioral mode
of development without growth.
◉ Throughput
Answer: The physical flow of matter and energy from nature's
sources, through the economy, and back to nature's sinks.
◉ Growthmania
Answer: The obsessive belief that exponential economic growth is
the solution to all problems and can continue indefinitely on a finite
planet.
◉ Decoupling
Answer: The idea that an economy can continue to grow without
increasing its environmental impact. Jackson distinguishes between
"relative" and "absolute" decoupling.
◉ Empty World vs. Full World
Answer: Daly's concept that we have moved from an "empty" world
where man-made capital was limiting to a "full" world where natural
capital is now the limiting factor.
EDITION FEENSTRA EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ The Twenty Percent Solution
Answer: 20% of the worlds population consumes 80% of its
resources (highlights the extreme inequality in the global economic
system)
◉ Boomerang Effect
Answer: When a developed country provides technology or training
to a developing country, only for that country to use it to become a
competitor and "hit" the original country back in the global market
◉ Variable Export Restraint
Answer: limit of qty of goods an exporting country is allowed to
export to another country
◉ Tariff Jumping
Answer: when a company builds a factory inside a foreign country to
avoid taxes
, ◉ Steady-State Economy (SSE)
Answer: An economy where the aggregate throughput of matter and
energy is kept constant, conforming to the earth's behavioral mode
of development without growth.
◉ Throughput
Answer: The physical flow of matter and energy from nature's
sources, through the economy, and back to nature's sinks.
◉ Growthmania
Answer: The obsessive belief that exponential economic growth is
the solution to all problems and can continue indefinitely on a finite
planet.
◉ Decoupling
Answer: The idea that an economy can continue to grow without
increasing its environmental impact. Jackson distinguishes between
"relative" and "absolute" decoupling.
◉ Empty World vs. Full World
Answer: Daly's concept that we have moved from an "empty" world
where man-made capital was limiting to a "full" world where natural
capital is now the limiting factor.
