EC 380 CORE MAIN SET 2026 QUESTIONS AND
ANSWERS SURE A+
✔✔IMF conditionality refers to:
a) technical assistance the IMF gives
b) minimum-sized loan the IMF will make
c) maximum-sized loan the IMF will make
d) changes a country must make in order to receive IMF financial assistance - ✔✔d)
changes a country must make in order to receive IMF financial assistance
✔✔Having MFN status means:
a) that foreign goods are treated similarly to the same domestic goods once they enter a
nation's market
b) that a country is excluded from any tariffs or trade barriers
c) that a country cannot join a regional trade agreement
d) that a country is getting the same treatment as most-favored trading partner - ✔✔d)
that a country is getting the same treatment as a most-favored trading partner
✔✔Which of the following is true?
a) a common market is more deeply integrated than a customs union
, b) the European Union is shallower & broader form of integration than the USMCA
(formerly NAFTA)
c) the USMCA (formerly NAFTA) is an example of a customs union
d) customs unions require the creation of a common currency - ✔✔a) a common market
is more deeply integrated than a customs union
✔✔Which of the following is NOT an example of an international public good?
a) capital flows to less-developed countries
b) last-resort lending
c) open markets during a recession
d) regional trade agreements - ✔✔d) regional trade agreements
✔✔US. UK.
Wheat: 12. 6
Cloth: 6 18
The table above shows United States & United Kingdom production of wheat (bushels
per hour) and cloth (yards per hour). Which of the following is true?
a) the US has an absolute advantage in the production of wheat
b) the US has an absolute advantage in the production of cloth
c) there is no basis for trade between these countries
d) the US will gain more from trade than the UK - ✔✔a) the US has absolute advantage
in the production of wheat
✔✔US. UK.
Wheat: 12. 6
Cloth: 6 18
The table above shows US & UK production of wheat (bushels per hour) and cloth
(yards per hour). In order for both countries to gain from trade, one bushel of wheat
must trade for:
a) between 6 & 18 yards of cloth
b) between 1/2 & 2 yards of cloth
c) between 1/3 and 3 yards of cloth
d) between 1/2 and 3 yards of cloth - ✔✔d) between 1/2 and 3 yards of cloth
Work:
OC-W (US): 6/12 = 1/2
OC-W (UK): 18/6 = 3
✔✔A country will gain relatively more from trade when:
ANSWERS SURE A+
✔✔IMF conditionality refers to:
a) technical assistance the IMF gives
b) minimum-sized loan the IMF will make
c) maximum-sized loan the IMF will make
d) changes a country must make in order to receive IMF financial assistance - ✔✔d)
changes a country must make in order to receive IMF financial assistance
✔✔Having MFN status means:
a) that foreign goods are treated similarly to the same domestic goods once they enter a
nation's market
b) that a country is excluded from any tariffs or trade barriers
c) that a country cannot join a regional trade agreement
d) that a country is getting the same treatment as most-favored trading partner - ✔✔d)
that a country is getting the same treatment as a most-favored trading partner
✔✔Which of the following is true?
a) a common market is more deeply integrated than a customs union
, b) the European Union is shallower & broader form of integration than the USMCA
(formerly NAFTA)
c) the USMCA (formerly NAFTA) is an example of a customs union
d) customs unions require the creation of a common currency - ✔✔a) a common market
is more deeply integrated than a customs union
✔✔Which of the following is NOT an example of an international public good?
a) capital flows to less-developed countries
b) last-resort lending
c) open markets during a recession
d) regional trade agreements - ✔✔d) regional trade agreements
✔✔US. UK.
Wheat: 12. 6
Cloth: 6 18
The table above shows United States & United Kingdom production of wheat (bushels
per hour) and cloth (yards per hour). Which of the following is true?
a) the US has an absolute advantage in the production of wheat
b) the US has an absolute advantage in the production of cloth
c) there is no basis for trade between these countries
d) the US will gain more from trade than the UK - ✔✔a) the US has absolute advantage
in the production of wheat
✔✔US. UK.
Wheat: 12. 6
Cloth: 6 18
The table above shows US & UK production of wheat (bushels per hour) and cloth
(yards per hour). In order for both countries to gain from trade, one bushel of wheat
must trade for:
a) between 6 & 18 yards of cloth
b) between 1/2 & 2 yards of cloth
c) between 1/3 and 3 yards of cloth
d) between 1/2 and 3 yards of cloth - ✔✔d) between 1/2 and 3 yards of cloth
Work:
OC-W (US): 6/12 = 1/2
OC-W (UK): 18/6 = 3
✔✔A country will gain relatively more from trade when:
