Pricing-to-market is a business practice that was common in the twentieth century, but has now all but disappeared.
Indicate whether the statement is true or false
Question 2 - Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home should
A) export cloth.
B) export widgets.
C) export both and import nothing.
D) export and import nothing.
E) export widgets and import cloth.
Question 3 - Sale of U.S. government bonds to foreigners is an example of direct foreign investment in the United States.
Indicate whether the statement is true or false
Question 4 - After implementation of the Single European Act, value added taxes in the EU were
A) completely harmonized.
B) unchanged.
C) partially harmonized with minimum and maximum permissible values set by the EU.
D) eliminated except on a few items in each country.
E) cut in half in order to increase the role of corporate taxes.
Question 5 - Let Kj and Lj denote the capital and labor inputs in the production of good j (j = S,T), then good S is said to be capital intensive relative to good T if
A) KS > KT.
B) KS/LS > KT/LT.
C) LS < LT.
D) All of the above.
Question 6 - Based on Table 9.2, the current account balance is
A) -2 percent of GNP.
B) +2 percent of GNP.
C) +4 percent of GNP.
D) -4 percent of GNP.
E) None of the above.
Question 7 - If the case study on U.S. / China trade is correct in its analysis of factor abundance,
A) Chinese capital owners should see their income rise as trade increases.
B) U.S. skilled labor inputs should see their incomes fall as trade increases.
C) U.S. capital owners should see their income fall as trade increases.
D) Chinese unskilled labor should see their income rise as trade increases.
Question 8 - A country engaging in trade according to the principles of comparative advantage gains from trade because it
A) is producing exports indirectly more efficiently than it could alternatively.
B) is producing imports indirectly more efficiently than it could domestically.
C) is producing exports using fewer labor units.
D) is producing imports indirectly using fewer labor units.
E) is producing exports while outsourcing services.
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