Pos486 - Study guides, Class notes & Summaries

• Question 1 1 out of 1 points If the Brazilian currency, the Real, appreciates by 18% relative to the Argentine peso, Selected Answer: c. Brazilian pay 18% less for Argentine goods/services Correct Answer: c. Brazilian pay 18% less for Argentine goods/services Response Feedback: Comprehension question based on devaluation of currency; see Chapter 10 • Question 2 1 out of 1 points The US dollar is an example of Selected Answer: a. a floating currency ...

• Question 1 1 out of 1 points Which of the traditional schools of IPE emphasizes the distributional conflict inherent between labor and capital? Selected Answer: 1. Marxism Correct Answer: 1. Marxism • Question 2 1 out of 1 points The WTO's dispute settlement mechanism Selected Answer: 3. helps member governments resolve disputes and authorizes punishment in the event of noncompliance Correct Answer: 3. helps member governments resolve disputes and...

1. Given the domestic costs of maintaining a fixed exchange rate, most of the world's largest economies allow their currencies to float against one another. List two reasons why a government would choose a fixed exchange rate system rather than a floating exchange rate (1pt) Provides an exchange rate stability Can limit rates of inflation with proper monetary controls

providing gains in the form of increased revenue to domestic producers 2. lowering the price, thereby increasing the quantity demanded See Chapter 3, "The Economic Case for Free Trade" and Lecture 3 • Question 2 In a liberalized country with an abundance of labor and land but little capital, we would expect Selected Answer: Correct Answer: Response Feedback: 2. agricultural interests to be export- oriented 2. agricultural interests to be export- oriented See Oatley Chapter 4 & Lecture 4 ...

Free trade alters supply and demand by Selected Answer: 4. providing gains in the form of increased revenue to domestic producers Correct Answer: 2. lowering the price, thereby increasing the quantity demanded Response Feedback: See Chapter 3, "The Economic Case for Free Trade" and Lecture 3  Question 2 In a liberalized country with an abundance of labor and land but little capital, we would expect Selected Answer: 2. agricultural interests to be exportoriented Correct Answer: 2. agricultur...

Exam of 15 pages for the course POS 486 at Arizona State University (Finals POS)