_________ policies attempt to foster industrialization by establishing high barriers to imports of foreign goods to promote local production ?

A. Absolute advantage
B. Comparative advantage
C. Export-led growth
D. Import substitution

In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

A. Px/pm
B. Pm/px
C. (pm/px)qm
D. (px/pm)qx

Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?

A. Relatively greater then
B. Relatively less than
C. The same as
D. Any of the above

Import substitution is an example of ?

A. The principle of comparative advantage
B. The principle of absolute advantage
C. An outward-looking growth strategy
D. An inward-looking growth strategy

Export-led growth strategies tend to emphasize ?

A. Resource allocation based on the principle of absolute advantage
B. Resource allocation based on the principle of comparative advantage
C. Trade protection for import-competing firms
D. Trade protection for exporting-competing firms

To be considered a good candidate for export cartel, a commodity should ?

A. Be a manufactured good
B. Be a primary product
C. Have a low price elasticity of supply
D. Have a high price elasticity of demand

All of the following are trade problems of developing countries except?

A. Unstable export markets
B. Improving terms of trade
C. Limited access to the markets of industrial countries
D. Highly elastic demand curves for their products

The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ?

A. A lack of substitutes for oil
B. Similar cost schedules for member countries
C. Highly inelastic world demand curve for oil
D. Economic recession for oil importing nations

Which of the following strategies have developing countries not used to deal with the problem of unstable export markets ?

A. Multilateral contracts
B. Production and export controls
C. Buffer stock arrangements
D. Tariff-rates quotas

Because supply and demand conditions for primary products are very price inelastic their prices ?

A. Have been steadily rising in recent decades
B. Have been more stable than the prices of manufactured goods
C. Fluctuate about as much as the prices of manufactured goods
D. Tend to be very unstable from year to year