FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: International Trade and Economic Growth

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The rarest migration pattern is for people to move permanently from

A) poor countries to richer countries.
B) poor countries to other poor countries.
C) rich countries to poor countries.
D) rich countries to other rich countries.

E) A) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Recently, many developing countries throughout the world have begun to institute policies that seek to

A) liberalize international trade by lowering trade barriers.
B) reduce dependence on international trade by raising trade barriers.
C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods.
D) Two of the above.

E) A) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors.

An example of direct foreign investment is given by

If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF) will

The movement of production to affiliate firms outside of the country is known as outsourcing.

The way in which growth occurs affects the pattern of trade of a country.

policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base.

Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape.

If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Economic growth at constant prices will never lead to a fall in the output of one good.

Economic growth could make a country worse off.

would gain from expanded immigration.

would likely oppose policies that allowed foreign workers to immigrate more freely.

policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods.

growth is said to occur when a country's welfare falls as the country grows.

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.