BINTERNATIONAL ECONOMICS
MIDTERM 2 - KRUGMAN
The intertemporal tradeoff between present and future consumption is measured by the - ...Real
Interest Rate
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its
imports, this would - improve its terms of trade.
International borrowing and lending may be interpreted as one form of - Intertemporal Trade
If one observes that Japan was traditionally a net foreign lender, one could conclude that relative to
its international trade and financial partners - Japan's intertemporal production possibilities are biased
toward present consumption.
If points A and B are two locations on a country's production possibility frontier, then - the country could
produce either of the two bundles.
If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its
exports, this must - improve the real income of its trade partners.
Rapidly growing developing countries tend to be borrowers on the international capital markets.
From this information we may surmise that they have a comparative advantage in - future income.
Suppose that a "small country" experiences growth strongly biased toward its export, cloth - this will
have no effect on terms of trade for the country's trading partner.
Refer to the figure above, which shows a country's possible production possibility frontiers and
indifference curves. If the country is producing at ________, then moving to ________ will cause
utility to ________. - Point C; Point B; Remain Unchanged
If a country began exporting product A and importing product B, then, as compared to the autarky
(no-trade) situation, the marginal cost of product A will - Increase
The meaning of "terms of trade" is - the price of a country's exports divided by the price of its imports.
The price of ________ consumption in terms of ________ consumption is ________. - future; current;
1/(1 + r)
An increase in a country's net commodity terms of trade will - not always guarantee positive changes in
the country's economy.
, A country cannot produce a mix of products with a higher value than where - the isovalue line is tangent
to the production possibility frontier.
It may be argued that theoretically, international capital movements - tend to hurt labor in donor
countries.
If output is increased in the long-run, then in the presence of internal economies of scale the
number of firms will ________, and in the presence of constant external returns to scale the number
of firms will ________. - Remain Constant; increase
If a firm's output less than doubles when all inputs are doubled, production is said to occur under
conditions of - Decreasing Returns to Scale
The share of ________ goods in employment is ________ across the country. The share of ________
goods in employment is ________ across the country. - nontraded; uniform; traded; variable
If a firm's output more than doubles when all inputs are doubled, production is said to occur under
conditions of - increasing returns to scale.
If two countries begin trade and both produce a product subject to external economies of scale, then
the country with the ________ rate of production will ________ production until it controls
________ of the market. - higher; increase; 100%
When there are external economies of scale, an increase in the size of the market will - increase the
number of firms and lower the price per unit.
If two countries begin trade and both produce a product subject to internal economies of scale, then
the country with the ________ rate of production will ________ production until it controls
________ of the market. - higher; increase; 100%
Restaurant meals are an example of a ________ good and clothing is an example of a ________
good. The pattern of interregional trade is determined primarily by ________. - nontraded; traded;
external economies.
A learning curve relates ________ to ________ and is a case of ________ returns. - unit cost; cumulative
production; dynamic increasing returns
If a firm's output doubles when all inputs are doubled, production is said to occur under conditions
of - Constant Returns to Scale
The study of factors that influence both international and interregional trade is referred to as - Economic
Geography
The primary determinant of patterns of interregional trade is - accidents of history.
MIDTERM 2 - KRUGMAN
The intertemporal tradeoff between present and future consumption is measured by the - ...Real
Interest Rate
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its
imports, this would - improve its terms of trade.
International borrowing and lending may be interpreted as one form of - Intertemporal Trade
If one observes that Japan was traditionally a net foreign lender, one could conclude that relative to
its international trade and financial partners - Japan's intertemporal production possibilities are biased
toward present consumption.
If points A and B are two locations on a country's production possibility frontier, then - the country could
produce either of the two bundles.
If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its
exports, this must - improve the real income of its trade partners.
Rapidly growing developing countries tend to be borrowers on the international capital markets.
From this information we may surmise that they have a comparative advantage in - future income.
Suppose that a "small country" experiences growth strongly biased toward its export, cloth - this will
have no effect on terms of trade for the country's trading partner.
Refer to the figure above, which shows a country's possible production possibility frontiers and
indifference curves. If the country is producing at ________, then moving to ________ will cause
utility to ________. - Point C; Point B; Remain Unchanged
If a country began exporting product A and importing product B, then, as compared to the autarky
(no-trade) situation, the marginal cost of product A will - Increase
The meaning of "terms of trade" is - the price of a country's exports divided by the price of its imports.
The price of ________ consumption in terms of ________ consumption is ________. - future; current;
1/(1 + r)
An increase in a country's net commodity terms of trade will - not always guarantee positive changes in
the country's economy.
, A country cannot produce a mix of products with a higher value than where - the isovalue line is tangent
to the production possibility frontier.
It may be argued that theoretically, international capital movements - tend to hurt labor in donor
countries.
If output is increased in the long-run, then in the presence of internal economies of scale the
number of firms will ________, and in the presence of constant external returns to scale the number
of firms will ________. - Remain Constant; increase
If a firm's output less than doubles when all inputs are doubled, production is said to occur under
conditions of - Decreasing Returns to Scale
The share of ________ goods in employment is ________ across the country. The share of ________
goods in employment is ________ across the country. - nontraded; uniform; traded; variable
If a firm's output more than doubles when all inputs are doubled, production is said to occur under
conditions of - increasing returns to scale.
If two countries begin trade and both produce a product subject to external economies of scale, then
the country with the ________ rate of production will ________ production until it controls
________ of the market. - higher; increase; 100%
When there are external economies of scale, an increase in the size of the market will - increase the
number of firms and lower the price per unit.
If two countries begin trade and both produce a product subject to internal economies of scale, then
the country with the ________ rate of production will ________ production until it controls
________ of the market. - higher; increase; 100%
Restaurant meals are an example of a ________ good and clothing is an example of a ________
good. The pattern of interregional trade is determined primarily by ________. - nontraded; traded;
external economies.
A learning curve relates ________ to ________ and is a case of ________ returns. - unit cost; cumulative
production; dynamic increasing returns
If a firm's output doubles when all inputs are doubled, production is said to occur under conditions
of - Constant Returns to Scale
The study of factors that influence both international and interregional trade is referred to as - Economic
Geography
The primary determinant of patterns of interregional trade is - accidents of history.
