Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

A. Price inflation in the united states
B. An increase in u.s real income
C. A decrease in the british money supply
D. Falling interest rates in britain

During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?

A. Flows of foreign investment into the united states
B. Rising price inflation in the united states
C. A substantial decrease in u.s imports
D. A substantial increase in u.s exports

If the relative Price (MRT) of T were to increase, then the price line would ?

A. Shift out in a parallel fashion
B. Shift in a parallel fashion
C. Become steeper
D. Become flatter

If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?

A. Constant opportunity costs
B. Decreasing opportunity costs
C. First increasing and then decreasing opportunity costs
D. Increasing opportunity costs

Which countries terms of trade improved between 1990 and 2000 ?

A. Mexico and denmark
B. Sweden and denmark
C. Sweden and spain
D. Mexico and sweden

In aukarky, when a community maximizes its standard of living, its production and consumption point is ?

A. Below the production possibility frontier
B. On the production possibility frontier
C. Above the production possibility frontier
D. Can’t tell without more information

In autarky, when a community maximizes its standard of living its production point is ?

A. Below the production possibility frontier
B. On the production possibility frontier
C. Above the production possibility frontier
D. Can’t tell without more information

Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?

A. Trades at canada’s marginal rate of transformation
B. Trade at sweden’s marginal rate of transformation
C. Specializes completely in the production of its export good
D. Specializes partially in the production of its exports goods

Dynamic gains from trade could result from ?

A. The stimulus of additional investment spending as market open
B. Economies of large scale production as markets open
C. Additional competition made possible by the opening of markets
D. All of the above

G. MecDougall showed in his tests that ?

A. Relatively higher u.s labor productivity was associated with relatively higher u.k export ratios
B. Relatively high u.k labor productivity was associated with relatively higher u.k export ratios
C. Labor productivity ratios and export ratios were not associated with each other
D. None of the above