Econ 436 International Trade Final Exam Latest
Update 2024-2025 Actual Exam from Credible
Source with 160 Questions and 100% Verified
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- Sweden trades more with Germany than with Austria
- Hong Kong trades more with China than with the U.S.
- In the EU, Netherlands and Belgium will be more greatly affected by Brexit than
Slovania - CORRECT ANSWER: Gravity Model Examples
1st wave of globalization - CORRECT ANSWER: 1870 to 1914
- railroads, steamboats, telegraph
2nd Wave of Globalization - CORRECT ANSWER: 1945 to 1980:
- airplanes, fax machines, internet
A --- unit labor requirement means high labor productivity - CORRECT ANSWER: low
A country had the ----- in producing Good X if its opportunity cost of producing Good X is
lower than another country - CORRECT ANSWER: comparative advantage
according to the specific factor the mobile factor - CORRECT ANSWER: experiences
ambiguous welfare effect from trade
comparative advantage - CORRECT ANSWER: the ability to produce a good at a lower
opportunity cost than another producer
David Ricardo - CORRECT ANSWER: Ricardian Theory
,- comparative advantage
- industry specialization and free trade
during the first wave of globalization - CORRECT ANSWER: railroads and steamships
were invented
example of external economies of scale - CORRECT ANSWER: 1. Detroit is the center
of car manufacturing in the U.S.
2. Dalton, GA, is the carpet capital of the U.S.
3. Hollywood is the center of the movie industry
examples of non-tradable goods and services - CORRECT ANSWER: haircuts and
plumbing service
factors that promote trade - CORRECT ANSWER: 1. cultural similarities
2. historical connections
3. free trade agreement
4. common currency
Given its GDP, Ireland's trade with the U.S. is --- other EU countries - CORRECT
ANSWER: significantly more than
Gravity Model - CORRECT ANSWER: volume of trade is directly related to the GDP of
each trading partner and is inversely related to the distance between them
Home and Foreign both can produce a variety of goods. The production of 1 kilo of
cheese requires 1 unit of labor at Home and 0.25 units of labor in Foreign. Home's
relative productivity advantage in cheese is:
a. 4
b. 1
c. 0.25
, d. 0 - CORRECT ANSWER: c. 0.25
Home exports bread and imports cheese. Both bread and cheese are normal goods. If
the relative price of cheese increases, the income effect implies that - CORRECT
ANSWER: Home's real income will decrease, causing it to consume less of both goods
If a country experiences import-biased growth, its welfare - CORRECT ANSWER: will
increase
If A has a lower opportunity cost than B in a good, we say that A has the -- in that good -
CORRECT ANSWER: comparative advantage
If A is more productive than B in a good, we say that A has the -- of that good -
CORRECT ANSWER: absolute advantage
If Japan imposes a tariff on imported rice, it will cause the internal relative price of rice in
Japan to be - CORRECT ANSWER: higher than the external relative price of rice
if producers can substitute PPF will be - CORRECT ANSWER: smooth and concave
If the relative price of Good X exceeds the opportunity cost of X a country will --- in
producing Good X - CORRECT ANSWER: specialize
Immiserizing growth - CORRECT ANSWER: Growth that expands the country's
willingness to trade can result in such a large decline in the country's terms of trade that
the country is worse off.
impediments to trade - CORRECT ANSWER: 1. distance
2. barriers
3. borders
Update 2024-2025 Actual Exam from Credible
Source with 160 Questions and 100% Verified
Detailed Correct Answers Guaranteed A+
Approved by Professor
- Sweden trades more with Germany than with Austria
- Hong Kong trades more with China than with the U.S.
- In the EU, Netherlands and Belgium will be more greatly affected by Brexit than
Slovania - CORRECT ANSWER: Gravity Model Examples
1st wave of globalization - CORRECT ANSWER: 1870 to 1914
- railroads, steamboats, telegraph
2nd Wave of Globalization - CORRECT ANSWER: 1945 to 1980:
- airplanes, fax machines, internet
A --- unit labor requirement means high labor productivity - CORRECT ANSWER: low
A country had the ----- in producing Good X if its opportunity cost of producing Good X is
lower than another country - CORRECT ANSWER: comparative advantage
according to the specific factor the mobile factor - CORRECT ANSWER: experiences
ambiguous welfare effect from trade
comparative advantage - CORRECT ANSWER: the ability to produce a good at a lower
opportunity cost than another producer
David Ricardo - CORRECT ANSWER: Ricardian Theory
,- comparative advantage
- industry specialization and free trade
during the first wave of globalization - CORRECT ANSWER: railroads and steamships
were invented
example of external economies of scale - CORRECT ANSWER: 1. Detroit is the center
of car manufacturing in the U.S.
2. Dalton, GA, is the carpet capital of the U.S.
3. Hollywood is the center of the movie industry
examples of non-tradable goods and services - CORRECT ANSWER: haircuts and
plumbing service
factors that promote trade - CORRECT ANSWER: 1. cultural similarities
2. historical connections
3. free trade agreement
4. common currency
Given its GDP, Ireland's trade with the U.S. is --- other EU countries - CORRECT
ANSWER: significantly more than
Gravity Model - CORRECT ANSWER: volume of trade is directly related to the GDP of
each trading partner and is inversely related to the distance between them
Home and Foreign both can produce a variety of goods. The production of 1 kilo of
cheese requires 1 unit of labor at Home and 0.25 units of labor in Foreign. Home's
relative productivity advantage in cheese is:
a. 4
b. 1
c. 0.25
, d. 0 - CORRECT ANSWER: c. 0.25
Home exports bread and imports cheese. Both bread and cheese are normal goods. If
the relative price of cheese increases, the income effect implies that - CORRECT
ANSWER: Home's real income will decrease, causing it to consume less of both goods
If a country experiences import-biased growth, its welfare - CORRECT ANSWER: will
increase
If A has a lower opportunity cost than B in a good, we say that A has the -- in that good -
CORRECT ANSWER: comparative advantage
If A is more productive than B in a good, we say that A has the -- of that good -
CORRECT ANSWER: absolute advantage
If Japan imposes a tariff on imported rice, it will cause the internal relative price of rice in
Japan to be - CORRECT ANSWER: higher than the external relative price of rice
if producers can substitute PPF will be - CORRECT ANSWER: smooth and concave
If the relative price of Good X exceeds the opportunity cost of X a country will --- in
producing Good X - CORRECT ANSWER: specialize
Immiserizing growth - CORRECT ANSWER: Growth that expands the country's
willingness to trade can result in such a large decline in the country's terms of trade that
the country is worse off.
impediments to trade - CORRECT ANSWER: 1. distance
2. barriers
3. borders
