International Economics Assignment-
Part I: Answer ALL of the following Multiple choice questions-
1- A main advantage of specialization results from:
a. Economies of large-scale production
b. The specializing country behaving as a monopoly
c. Smaller production runs resulting in lower unit costs
d. High wages paid to foreign workers
2- International trade in goods and services is sometimes used as a substitute for all of the following except:
a. International movements of capital
b. International movements of labor
c. Domestic production of the same goods and services
d. Domestic production of different goods and services
3- If a nation has an open economy, it means that the nation:
a. Allows private ownership of capital
b. Has flexible exchange rates
c. Has fixed exchange rates
d. Conducts trade with other countries
4- International trade forces domestic firms to become more competitive in terms of:
a. The introduction of new products
b. Product design and quality
c. Product price
d. All of the above
PART II: Answer all of the following definition questions-
1- What are the challenges of the international trading system?
2- Explain General equilibrium of an Economy with help of a Diagram?
3- Using the following data, calculate the country's nominal and real GDP levels and draw the budget line for example (a).
|
|
PS
|
S
|
PT
|
T
|
|
a.
|
$5
|
20
|
$1
|
15
|
|
b.
|
$10
|
20
|
$2
|
15
|
|
c.
|
$4
|
40
|
$8
|
12
|
|
d.
|
$4
|
60
|
$8
|
18
|