WSU Econ 327 Exam 1 questions with \| \| \| \| \| \| \|
correct answers \|
Assume a specific factors economy produces two goods, cloth and food, and
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that when representing this economy graphically, cloth is on the x-axis and
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food is on the y-axis. \| \| \| \|
For a trading economy, - CORRECT ANSWERS ✔✔the budget constraint is
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tangent to the production possibility frontier at the chosen production point
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Over the past forty years the composition of developing-country exports has -
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CORRECT ANSWERS ✔✔undergone a dramatic shift from primary products \| \| \| \| \| \| \| \| \|
to manufactures.
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A country has a comparative advantage in producing a good if - CORRECT
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ANSWERS ✔✔its opportunity cost of producing that good is lower than \| \| \| \| \| \| \| \| \| \| \|
elsewhere.
In each sector of a specific factors economy, profit-maximizing employers will
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demand labor up to the point where - CORRECT ANSWERS ✔✔the marginal
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product of labor times the price of the product equals the wage rate.
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Cost-benefit analysis of international trade - CORRECT ANSWERS ✔✔focuses \| \| \| \| \| \| \| \|
attention on conflicts of interest within countries.
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, Unlike the simple Ricardian model, the specific factors model - CORRECT
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ANSWERS ✔✔Assumes an economy that produces two goods and that can
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allocate its labor supply between the two sectors
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International economics can be divided into two broad sub-fields - CORRECT
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ANSWERS ✔✔international trade and international money \| \| \| \| \|
The potential for gains from the rearrangement of production among countries
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is due to - CORRECT ANSWERS ✔✔differing opportunity costs
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Movement of labor from a foreign country to the home economy - CORRECT
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ANSWERS ✔✔increases the MPL in foreign \| \| \| \| \|
In general which of the following tend to promote the probability of trade
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volumes between two countries - CORRECT ANSWERS ✔✔linguistic and/or
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cultural affinity. \| \|
historical ties. \| \|
sizes of economies.
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mutual membership in preferential trade agreements.
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In the present, most of the exports from China are in - CORRECT ANSWERS
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✔✔manufactured goods. \|
The Ricardian model unequivocally asserts that countries as a whole will
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always gain from trade because it - CORRECT ANSWERS ✔✔ignores the
\| \| \| \| \| \| \| \| \| \| \|
effects of trade on the distribution of income within countries.ig
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correct answers \|
Assume a specific factors economy produces two goods, cloth and food, and
\| \| \| \| \| \| \| \| \| \| \| \|
that when representing this economy graphically, cloth is on the x-axis and
\| \| \| \| \| \| \| \| \| \| \| \|
food is on the y-axis. \| \| \| \|
For a trading economy, - CORRECT ANSWERS ✔✔the budget constraint is
\| \| \| \| \| \| \| \| \| \| \|
tangent to the production possibility frontier at the chosen production point
\| \| \| \| \| \| \| \| \| \|
Over the past forty years the composition of developing-country exports has -
\| \| \| \| \| \| \| \| \| \| \| \|
CORRECT ANSWERS ✔✔undergone a dramatic shift from primary products \| \| \| \| \| \| \| \| \|
to manufactures.
\|
A country has a comparative advantage in producing a good if - CORRECT
\| \| \| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔its opportunity cost of producing that good is lower than \| \| \| \| \| \| \| \| \| \| \|
elsewhere.
In each sector of a specific factors economy, profit-maximizing employers will
\| \| \| \| \| \| \| \| \| \| \|
demand labor up to the point where - CORRECT ANSWERS ✔✔the marginal
\| \| \| \| \| \| \| \| \| \| \| \|
product of labor times the price of the product equals the wage rate.
\| \| \| \| \| \| \| \| \| \| \| \|
Cost-benefit analysis of international trade - CORRECT ANSWERS ✔✔focuses \| \| \| \| \| \| \| \|
attention on conflicts of interest within countries.
\| \| \| \| \| \| \|
, Unlike the simple Ricardian model, the specific factors model - CORRECT
\| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔Assumes an economy that produces two goods and that can
\| \| \| \| \| \| \| \| \| \| \|
allocate its labor supply between the two sectors
\| \| \| \| \| \| \|
International economics can be divided into two broad sub-fields - CORRECT
\| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔international trade and international money \| \| \| \| \|
The potential for gains from the rearrangement of production among countries
\| \| \| \| \| \| \| \| \| \|
is due to - CORRECT ANSWERS ✔✔differing opportunity costs
\| \| \| \| \| \| \| \| \|
Movement of labor from a foreign country to the home economy - CORRECT
\| \| \| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔increases the MPL in foreign \| \| \| \| \|
In general which of the following tend to promote the probability of trade
\| \| \| \| \| \| \| \| \| \| \| \| \|
volumes between two countries - CORRECT ANSWERS ✔✔linguistic and/or
\| \| \| \| \| \| \| \| \|
cultural affinity. \| \|
historical ties. \| \|
sizes of economies.
\| \| \|
mutual membership in preferential trade agreements.
\| \| \| \| \|
In the present, most of the exports from China are in - CORRECT ANSWERS
\| \| \| \| \| \| \| \| \| \| \| \| \| \|
✔✔manufactured goods. \|
The Ricardian model unequivocally asserts that countries as a whole will
\| \| \| \| \| \| \| \| \| \| \|
always gain from trade because it - CORRECT ANSWERS ✔✔ignores the
\| \| \| \| \| \| \| \| \| \| \|
effects of trade on the distribution of income within countries.ig
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