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International trade exam QUESTIONS WITH 100% SOLVED SOLUTIONS!
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International trade exam QUESTIONS WITH 100- SOLVED SOLUTIONS!
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International trade exam QUESTIONS WITH 100% SOLVEDSOLUTIONS!!
Which ,one ,of ,the ,following ,statements ,about ,illegal ,goods ,is ,true? ,- ,Answer ,Taxes ,generate ,revenue
s ,while ,prohibition ,sends ,a ,signal ,that ,might ,influence ,preferences
The ,fundamental ,force ,that ,drives ,international ,trade ,is ,- ,Answer ,comparative ,advantage
Which ,one ,of ,the ,following ,statements ,is ,false? ,- ,Answer ,A ,high ,marginal ,rate ,of ,substitution ,implie
s ,a ,consumer ,must ,receive ,a ,large ,amount ,of ,good ,X ,to ,compensate ,for ,a ,small ,dec ,in ,good ,Y
In ,the ,absence ,of ,government ,intervention, ,a ,profit-
maximizing ,firm ,producing ,a ,good ,within ,an ,external ,cost ,will ,produce ,a ,quantity ,at ,which ,- ,Answer
,price ,equals ,marginal ,private ,cost.
Imports ,- ,Answer ,goods ,and ,services ,purchased ,from ,other ,countries
Exports ,- ,Answer ,Goods ,and ,Services ,sold ,to ,other ,countries
Openness ,- ,Answer ,willingness ,to ,try ,new ,things ,and ,be ,open ,to ,new ,experiences
Gross ,Domestic ,Product ,
(GDP) ,- ,Answer ,The ,sum ,total ,of ,the ,value ,of ,all ,the ,goods ,and ,services ,produced ,in ,a ,nation
Foreign ,Domestic ,Investment ,(FDI) ,- ,Answer ,Investment ,made ,by ,a ,foreign ,company ,in ,the ,economy
,of ,another ,country
GATT ,
(General ,Agreement ,on ,Tariffs ,and ,Trade) ,- ,Answer ,an ,international ,trade ,treaty ,designed ,to ,encour
age ,worldwide ,trade ,among ,its ,members ,(1947)
, World ,Trade ,Organization ,
(WTO) ,- ,Answer ,a ,permanent ,global ,institution ,to ,promote ,international ,trade ,and ,to ,settle ,internati
onal ,trade ,disputes
Adjustment ,costs ,- ,Answer ,The ,costs ,that ,a ,firm ,incurs ,when ,it ,changes ,its ,production ,level
Example ,of ,adjustment ,costs ,- ,Answer ,the ,administration ,costs ,of ,laying ,off ,employees ,or ,the ,traini
ng ,costs ,of ,hiring ,new ,workers.
trade ,balance ,- ,Answer ,the ,value ,of ,a ,nation's ,exports ,minus ,the ,value ,of ,its ,imports; ,also ,called ,ne
t ,exports
trade ,surplus ,- ,Answer ,situation ,in ,which ,a ,country ,exports ,more ,than ,it ,imports
trade ,deficit ,- ,Answer ,situation ,in ,which ,a ,country ,imports ,more ,than ,it ,exports
current ,account ,- ,Answer ,in ,the ,balance ,of ,payments, ,records ,transactions ,involving ,the ,export ,or ,i
mport ,of ,goods ,and ,services
Financial ,account ,- ,Answer ,the ,part ,of ,the ,balance ,of ,payments ,that ,records ,purchases ,of ,assets ,a ,c
ountry ,has ,made ,abroad ,and ,foreign ,purchases ,of ,assets ,in ,the ,country
Captial ,Account ,- ,Answer ,Records ,the ,portfolio ,and ,foreign ,direct ,investments ,into ,and ,out ,of ,a ,cou
ntry ,over ,a ,period ,of ,time.
balance ,of ,payments ,- ,Answer ,the ,difference ,between ,the ,amount ,of ,money ,that ,comes ,into ,a ,cou
ntry ,and ,the ,amount ,that ,goes ,out ,of ,it
National ,income ,identity ,- ,Answer ,Y ,= ,C ,+ ,I ,+ ,G ,+ ,NX
Consumption+investment+government ,spending+(exports-imports)
Total ,national ,savings ,- ,Answer ,sum ,of ,private ,and ,public ,savings
Current ,account ,identity ,- ,Answer ,CA ,= ,S ,- ,I
Mercantilism ,- ,Answer ,an ,economic ,system ,
(Europe ,in ,18th ,C) ,to ,increase ,a ,nation's ,wealth ,by ,government ,regulation ,of ,all ,of ,the ,nation's ,com
mercial ,interests
zero-
sum ,- ,Answer ,an ,exchange ,in ,a ,purely ,conflictual ,relationship ,in ,which ,what ,is ,gained ,by ,one ,comp
etitor ,is ,lost ,by ,the ,other
positive ,sum ,- ,Answer ,Conflict ,resolution ,in ,which ,all ,parties ,benefit. ,Also ,known ,as ,win-win.
factors ,of ,production ,- ,Answer ,Land, ,labor, ,and ,capital; ,the ,three ,groups ,of ,resources ,that ,are ,used ,
to ,make ,all ,goods ,and ,services
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