Uncategorized

ECO122 NOUN E-exam Past Question & Answers

Question
__ was the proponent of the theory of Comparative Advantage

Answer
David Ricardo

Question
The law of _ is defined as the good or service in which a country is more efficient or can produce more than the other country or can produce the same amount with another country using fewer resources

Answer
Absolute Advantage

Question
International trade is important as it is a channel of meeting the wants of individuals who are residents in different _ of the world

Answer
countries

Question
The reasons for trade between countries are not in any way different from reasons individuals trade within a __

Answer
country

Question
__ could therefore be safely defined as a trade relation between a country and the rest of the world

Answer
International trade

Question
The act of buying goods or services from a foreign country is called _

Answer
importing

Question
The act of selling goods or services to a foreign country is called __

Answer
exporting

Question
An _ economy is an economy in which there are economic activities between domestic community and outside

Answer
open

Question
Gains from international trade brings about increase __

Answer
output

Question
The _ states that countries will benefit from trade with a rise in world output without additional factor inputs when countries specialize in the production of those goods in which their opportunity cost is lower

Answer
law of comparative advantage

Question
Let us assume that planned aggregate demand is given by: AD = C + I + G + NX, Let C = 610 + 0.8Y; I = 220; and G = 800; NX = 10 and T = 250. Calculate the equilibrium output.

Answer
None of the above

Question
A rise in the exchange rate when the domestic currency rises relative to foreign currency is called __

Answer
exchange rate depreciation

Question
When imported goods and services are purchased from abroad, though we pay in local currency in the local market, importers actually purchase those imported goods with the currency of the __ country from which such goods are purchased.

Answer
foreign

Question
Exports and imports are both affected by _

Answer
international prices

Question
There are two components of import demand, the one that is fixed, and the one that _ with income

Answer
varies

Question
_ depend on the spending decisions of domestic consumers

Answer
imports

Question
The spending decisions are guided by the level of __, price level, taste, and fashion of the foreign consumers

Answer
income

Question
_ depend on spending decisions made by foreign consumers or overseas firms that purchase domestic goods and services

Answer
Exports

Question
__ is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade

Answer
Gain from trade

Question
Gains from trade are the net benefits to agents from allowing an increase in voluntary _ with each other

Answer
trading

Question
__ was the proponent of the theory of Comparative Advantage

Answer
David Ricardo

Question
The law of _ is defined as the good or service in which a country is more efficient or can produce more than the other country or can produce the same amount with another country using fewer resources

Answer
Absolute Advantage

Question
International trade is important as it is a channel of meeting the wants of individuals who are residents in different _ of the world

Answer
countries

Question
The reasons for trade between countries are not in any way different from reasons individuals trade within a __

Answer
country

Question
__ could therefore be safely defined as a trade relation between a country and the rest of the world

Answer
International trade

Question
The act of buying goods or services from a foreign country is called _

Answer
importing

Question
The act of selling goods or services to a foreign country is called __

Answer
exporting

Question
An _ economy is an economy in which there are economic activities between domestic community and outside

Answer
open

Question
Gains from international trade brings about increase __

Answer
output

Question
The _ states that countries will benefit from trade with a rise in world output without additional factor inputs when countries specialize in the production of those goods in which their opportunity cost is lower

Answer
law of comparative advantage

Question
Let us assume that planned aggregate demand is given by: AD = C + I + G + NX, Let C = 610 + 0.8Y; I = 220; and G = 800; NX = 10 and T = 250. Calculate the equilibrium output.

Answer
None of the above

Question
A rise in the exchange rate when the domestic currency rises relative to foreign currency is called __

Answer
exchange rate depreciation

Question
When imported goods and services are purchased from abroad, though we pay in local currency in the local market, importers actually purchase those imported goods with the currency of the __ country from which such goods are purchased.

Answer
foreign

Question
Exports and imports are both affected by _

Answer
international prices

Question
There are two components of import demand, the one that is fixed, and the one that _ with income

Answer
varies

Question
_ depend on the spending decisions of domestic consumers

Answer
imports

Question
The spending decisions are guided by the level of __, price level, taste, and fashion of the foreign consumers

Answer
income

Question
_ depend on spending decisions made by foreign consumers or overseas firms that purchase domestic goods and services

Answer
Exports

Question
__ is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade

Answer
Gain from trade

Question
Gains from trade are the net benefits to agents from allowing an increase in voluntary _ with each other

Answer
trading

Question
__ was the proponent of the theory of Comparative Advantage

Answer
David Ricardo

Question
The law of _ is defined as the good or service in which a country is more efficient or can produce more than the other country or can produce the same amount with another country using fewer resources

Answer
Absolute Advantage

Question
International trade is important as it is a channel of meeting the wants of individuals who are residents in different _ of the world

Answer
countries

Question
The reasons for trade between countries are not in any way different from reasons individuals trade within a __

Answer
country

Question
__ could therefore be safely defined as a trade relation between a country and the rest of the world

Answer
International trade

Question
The act of buying goods or services from a foreign country is called _

Answer
importing

Question
The act of selling goods or services to a foreign country is called __

Answer
exporting

Question
An _ economy is an economy in which there are economic activities between domestic community and outside

Answer
open

Question
Gains from international trade brings about increase __

Answer
output

Question
The _ states that countries will benefit from trade with a rise in world output without additional factor inputs when countries specialize in the production of those goods in which their opportunity cost is lower

Answer
law of comparative advantage

Question
Let us assume that planned aggregate demand is given by: AD = C + I + G + NX, Let C = 610 + 0.8Y; I = 220; and G = 800; NX = 10 and T = 250. Calculate the equilibrium output.

Answer
None of the above

Question
A rise in the exchange rate when the domestic currency rises relative to foreign currency is called __

Answer
exchange rate depreciation

Question
When imported goods and services are purchased from abroad, though we pay in local currency in the local market, importers actually purchase those imported goods with the currency of the __ country from which such goods are purchased.

Answer
foreign

Question
Exports and imports are both affected by _

Answer
international prices

Question
There are two components of import demand, the one that is fixed, and the one that _ with income

Answer
varies

Question
_ depend on the spending decisions of domestic consumers

Answer
imports

Question
The spending decisions are guided by the level of __, price level, taste, and fashion of the foreign consumers

Answer
income

Question
_ depend on spending decisions made by foreign consumers or overseas firms that purchase domestic goods and services

Answer
Exports

Question
__ is the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade

Answer
Gain from trade

Question
Gains from trade are the net benefits to agents from allowing an increase in voluntary _ with each other

Answer
trading

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Adblock Detected

Please Enable Ads to have a smooth reading and using time