Ünite Sınavı Soruları

Which of the following is the factor of production which exists in a greater
proportion and with a relatively lower price in one country than the other country?

1. The theory of absolute advantage and the theory of comparative advantage are criticized for being supply oriented.
2. After the addition of demand by the standard theory of international trade, the analysis became more realistic.
3. The demand is exhibited by the community indifference curves while the supply is represented by the PPFs. (Production possibilities frontier)
4. Thus, the standard theory of international trade has been introduced.
5. The standard theory of international trade provides a simple ground to analyze the basis for and the gains from international trade

Which of the statements above related to early trade theories are correct?

‘Country’s ……………………….. exceed its production possibilities with international trade leading to a higher consumption satisfaction to the consumer.’

Refill the blank with one of the following options?

Which of the following is the ratio of the export price index of a county to its import price index?

Which trade policy aims to protect domestic producers and collecting revenue for the treasury?

Which of the following refers to the nominal exchange rate weighted by the consumer price index of the two countries?

1. How does international trade increase the economic gains ofthe trade partners?
2. How are these economic gains shared?
3. What are the welfare effects of international trade?
4. Why do the country imports the commodity instead of producing at home?
5. What is the basis for and the pattern of international trade between the trading countries and the economic gains of the trading countries from international trade?

Which of the above are the questions answered by international trade theories?

Which of the following refers to financial properties and assets such as bonds,
Treasury bills and stocks? 

I. Production possibilities frontier (PPF) is the boundary between those combinations of commodities and services that can be
produced and those that cannot.

II. A country’s consumption possibilities exceed its production possibilities with international trade leading to a lower consumption satisfaction to the consumer. 

III.  In international economics, consumption possibilities frontier (CPF) defines the consumption choices of a country under the given relative prices. 

What can be said to be true about consumption and production possibilities frontier?

Which international trade theory explains the reasons for the differences in the relative commodity prices in autarky?

Let’s assume a hypothetical world with two countries, namely Sunland and Lakeland. So as to provide simplicity for the analysis, it is assumed that the countries are producing only two commodities, corn and Wheel under increasing opportunity costs.For Lakeland, the absolute disadvantage in corn production (4) is greater than the absolute disadvantage in wheel production (1,6).

If this is the case which of the following statement can be said ? 

1. Current account deficit refers to a situation where the net result of the Current Account is negative.
2. Current account surplus refers to a situation where the net result of the Current Account is positive.
3. Capital Account constitutes the properties that are not financial, like the patent rights, intellectual property rights and licenses, etc.
4. Financial Account is the main sub-account of the Capital Account and Financial Account under which the foreign direct investments and portfolio investments are recorded.
5. Foreign direct investments (FDI) are the real investments made directly to the firms, capital commodities and land. In foreign direct investments, the control on the investment is in the hands of the investor.
6. Portfolio investments are financial properties and assets such as bonds, Treasury bills and stocks.

Which of the definitions above related to main accounts and functioning of balance of payments are correct?

Which of the following is false according to the table above?

Suppose that the free trade price of a commodity is 10 TL. Government imposes the import tariff that increases domesic price from 10 TL to 18 TL. Suppose that after imposing the import tariff, the domestic producers increase their production from 3 tons to 7 tons. Nevertheless, the domestic consumers decrease their consumption from 21 tons to 15 tons because of the domestic price increase. Which of the following is equal to the tariff revenue in this case?

1. It is acknowledged that economics as a science is born with the publication of the famous book of Adam Smith in 1776, entitled The Wealth of Nations.
2. According to Adam Smith, mutually beneficial trade can take place with absolute advantage.
3. The earliest international trade theory that proves a mutually beneficial trade is the theory of Adam Smith, namely the theory of absolute advantage.
4. The theory of absolute advantage postulates that if a country produces only the commodity that it can produce most efficiently and exchanges part of its output for the other commodities it demands, it would maximize its total output and welfare of its individuals.

Which of the statements above related to early trade theories are correct?

I. taxes

II. open market operations

III. devaluations

IV. trade restrictions

Which of the items given above are the right instruments for expenditure-switching policies?

Suppose that the USA is our domestic country while the UK is the foreign:

$ 1 = £ 0.6 → in 2015,

$ 1 = £ 0.7 → in 2016,

Consumer price inflation (2016) in USA → 5%

Consumer price inflation (2016) in UK → 3%

Using the data above, calculate the real exchange rate in 2016?