Which is the best explanation for the J Curve effect following currency depreciation?

Over time, demand becomes more price elastic

Comparative advantage is when

When one country can produce at lower opportunity cost

Heavily indebted poor countries

Over dependence on primary products tends to be dangerous because

Narrow sector reliance, volatile prices

Customs Union is a trading bloc which

Member nations must adopt common policy

Which of the following does not represent diversity among developing countries?

Low Levels of Productivity (per capita)

Indicators of development are

Low birth rates/ low dependency ratios

Currency Appreciation is an advantage because

There are less expensive imports

An industry that needs government support to grow is a

Infant Industry, Sunrise Industry

GNI is often lower than GDP in LDC's because...

They encourage foreign MNC's to set up operations

The Yen declining against other currencies results in all of the following rising, except

the price of Japanese exports in terms of other countries.

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Duplicate of IB Economics International/Development

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Answers

1
Which is the best explanation for the J Curve effect following currency depreciation?
Consumers and producers react very quickly
Over time, demand becomes more price elastic
Demand for exports is very price elastic in the short run.
Fluctuating exchange rates lead to automatic BOP adjustment
2
Comparative advantage is when
When one country can produce at lower opportunity cost
When one firm or country can produce more with less capital
When one country can produce more with less resources
When one country can produce more with less labor
3
A country can produce a good using fewer resources than another country
Strategic Advantage
Comparative Advantage
Absolute Advantage
Competitive Advantage
4
The stakeholders that most benefit from a quota are
Domestic Governments
Foreign producers
Domestic Producers
Consumers
5
HIPC stands for
Heavily inflated price crisis
Heavily influential private corporations
Heavily indebted poor countries
Heavily indebted private corporations
6
0.800
Very High Human Development
High Human Development
Low Human Development
Medium Human Development
7
Over dependence on primary products tends to be dangerous because
unsustainable
Narrow sector reliance
Generally low prices
volatile prices
8
Customs Union is a trading bloc which
Each member can build their own barriers to trade
Allow free movement of labor
Uses a common currency
Member nations must adopt common policy
9
Which of the following does not represent diversity among developing countries?
Low Levels of Productivity (per capita)
Historical Background
Political Structure
Resource Endowment
10
These are NOT measured in the BOP
Capital Account
Current Account
Mutual Account
Financial Account
11
The EU is a
Free Trade Area
Customs Union
Monetary Union
Common Market
12
Advantages of a floating exchange rate are
volatile swings in prices
Flexible to external shocks
Risk of import inflation
Investor uncertainty
13
The only stakeholders that benefit from a subsidy are
Foreign producers
Domestic Producers
Domestic Governments
Consumers
14
Indicators of development are
Low per capita GDP
Large urban informal sector
Low birth rates/ low dependency ratios
High agricultural dependencies
15
Currency Appreciation is an advantage because
Results in imported inflation
Domestic Industry is hurt
There are less expensive imports
It expands domestic industry
16
FOREX is short for
Fixed exchange markets
Foreign exchange markets
Currency Exchange markets
Exchange markets
17
Does NOT determine exchange rates
Demand for FDI
Inflation rates
Monetary Policy
Fiscal Policy
18
An industry that needs government support to grow is a
Infant Industry
Sunset Industry
Sunrise Industry
Dumping Industry
19
GNI is often lower than GDP in LDC's because...
There is a large population
They encourage foreign MNC's to set up operations
The population
Domestic businesses own a lot of assets overseas
20
Which of the following is a composite indicator?
HDI
Life Expectancy at Birth
Adult Literacy Rate
GNI per capita
21
When a government moves to make a currency more valuable its a(n)
Depreciation
Revaluation
Devaluation
Appreciation
22
Stakeholders who do not benefit AT ALL from a tariff are
Foreign producers
Domestic Producers
Consumers
Domestic Governments
23
The Yen declining against other currencies results in all of the following rising, except
the price of Japanese exports in terms of other countries.
the volume of Japanese goods sold in other countries.
Japanese output.
the price level in Japan.
24
The poverty cycle is mostly seen as a problem of
Low self esteem
Low capital investment
Low productivity
Low income

Duplicate of IB Economics International/Development Flashcards | StudBud