The LM curve represents combinations of income and interest rate which :

The LM curve represents combinations of income and interest rate which
 
  A) clear the goods market.
  B) achieve the external equilibrium.
  C) clear the money market.
  D) achieve internal equilibrium.

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Question 2 - Which of the following theorems predicts that trade benefits the abundant factors of a country and harms the scarce factors?
 
  A) The Stolper-Samuelson theorem.
  B) The Rybczynski theorem.
  C) The Heckscher-Ohlin theorem.
  D) None of the above.

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Question 3 - The Single European Act was expected to create economic benefits by reducing the costs and risks of currency market transactions.
 
  Indicate whether the statement is true or false

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Question 4 - The infant industry argument is that
 
  A) comparative advantage is irrelevant to economic growth.
  B) developing countries have a comparative advantage in agricultural goods.
  C) developing countries have a comparative advantage in manufacturing.
  D) developing countries have a potential comparative advantage in manufacturing.
  E) developing countries have no chance to compete with industrialized countries.