Correlation between export intensity and wages

NAFTA provides for a common external tariff V X 2- A recent study on wages and trade found a negative correlation between export intensity and wages V Ð¥ 3- Key factors that have contributed to the increase in Singapore’s exports include the country’s open trade, investment, and economic policies 4- In a partnership (persons) is not to be interpreted to include corporations, partnerships, or other associations 5- Global imbalances may be reduced by a reduction in excess savings V X 6- Trade in services constitutes 25 percent of overall trade in 2004 V X 7- Import penetration is associated with lower demand elasticity, which increases workers’ bargaining power V Ð¥ 8- In 2004, developing countries accounted for about half of the world’s top twenty-five exporters and importers Ð¥ 9- Exports create high-wage employment. This can be seen by the study conducted by the USTR, which found that workers in export-related sectors earn 17 percent more than the average worker in the United States 10- A common market includes elements of a customs union and allows for the free movement of labor and capital among member nations Ñ… 11- Large countries tend to be more dependent on international trade than smaller countries Ð¥ 12- The GATT/WTO has used the principle of nondiscrimination to reduce trade barriers ✓ X 13- International trade is the exchange of goods and services within domestic borders Ð¥ 14- According to NAFTA, Mexico is allowed to place temporary capital limits for banks, securities firms, and insurance companies during a transition period 15- NAFTA requires members to provide ninety days notice before adapting new standards and allowing for comments before implementation Ð¥ 16- Co-ownership of a business in a partnership is determined by share of business profits and management responsibility x 17- Standard business deductions include general and administrative expenses, personal and business expenses, and entertainment, travel, and other business-related expenses ✓ X 18- Factors that firms must consider before exporting their products overseas include the success of the product in the domestic market, participation in overseas trade shows, and advertising and market data 19- A corporation is not separate from its owners and is created pursuant to state laws in the place the business is incorporated Ð¥ 20- Important factors to consider in selecting the export product include shifting spending patterns and emphasis on niche marketing Ð¥ 21- Commercial banks provide market research and promotion, financing exports, collections, credit information, and assistance X 22- Foreign media, commercial publications, and personal selling are ways that exporters can advertise their product or service overseas Ð¥ x 23- Trade missions are another import sales promotion tool V Choose the right answer 24- Which of the following describes the law of demand? When other things remain the same, as the price of gas falls, the quantity demanded of gas increases the quantity demanded of bread increases, the price of bread falls the price of peanut butter increases, the quantity demanded of jelly decreases your income increases, you’ll buy more hamburgers 25- a market is defined as a physical place where people buy only a physical place where people buy both G&S a store where people buy physical goods any arrangement that brings buyers and sellers together 26- Macroeconomic topics include The impact of government regulation of markets Total, nationwide employment Studying what factors influence the price and quantity of automobiles Studying the determination of wages and production costs in the software industry 27- Human capital is Machinery that meets or exceeds federal safety standards for use by humans All capital owned by individuals or corporations, but not by governments The skill and knowledge of workers All capital owned by individuals, but not by corporations or governments 28- According to the theory of comparative advantage, which of the following is NOT a reason why countries trade Costs are higher in one country than in another Prices are lower in one country than in another The productivity of labor differs across countries and industries Exports give a country a political advantage over other countries that export less 29- When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of A market mechanism A fallacy of composition Opportunity cost Macroeconomics 30- Which of the following shifts the supply curve for oranges disastrous weather that destroys about half of this year’s orange crop a newly discovered increase in the nutritional value of oranges an increase in the price of bananas, a substitute in consumption for oranges an increase in income for all orange consumers if oranges are a normal good 31- Since 1980s which of the following changes has happened in the world trade Share of “north-north” trade has decreased in total merchandise exports Share of “south-south” trade has increased in total merchandise exports share of agriculture produce has decreased in total merchandise exports all of the above 32- Transportation cost of trade affects Pattern of trade Boundaries between tradable and non-tradable goods Global supply chains All of the above 33- The opportunity cost of any action is The time required but not the monetary cost All the possible alternatives forgone The highest-valued alternative forgone.

The monetary cost but not the time required 34- The reason why international trade has strong effects on the distribution of income is because Resources cannot move immediately or without cost from one industry to another Industries differ in the factors of production they demand both a &b Trade has no effect on distribution of income 35- Underlying the application of the monopolistic competition model to trade is the idea that trade increases market size allows companies to charge higher price increases consumer choices decreases the number of firms in an industry 36- A supply curve Slopes downward Slopes upward Is a graph of the relationship between quantities supplied of a goods and its price Both answers B and C are correct 37- Which of the following trade policies limits specified quantity of goods to be imported at one tariff rate Quota Import tariff Specific tariff All of the above 38- Which of the following is not a benefit of international trade High wage levels for all domestic workers Lower domestic prices Development of more efficient methods and new products A greater range of consumption choices 39- New trade theory assumes the following Increasing returns to scale Imperfect competition Product differentiation all of the above 40- Which of the following is a determinant of trade Tastes Individual income Technological change All of the above 41- Which of the following countries have a surplus in their service account from tourism and workers’ remittances Egypt, India, Pakistan Egypt, India, China China, India, Pakistan China and India 42- For developing countries, determinants of import demand include Government restrictions on all exports Government restrictions on Imports Government restrictions on commercial exports only Government restrictions on gold shipments 43- Which technologies assisted with the physical integration of world markets Media E-commerce a and b None of the above 44- Unsustainable global imbalances have been a result of Weak currencies, domestic economic growth, and high savings Strong currencies, domestic economic growth, and high savings Weak currencies, domestic economic growth, and low savings Strong currencies and domestic economic growth only 45- Market equilibrium occurs when All markets become equal.

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