[{"id":214925,"question":"If a country has a burden of debt it cannot sustain it can.","choices":[{"text":"Reschedule debt","value":"A"},{"text":"Get a loan from an international organization","value":"B"},{"text":"Default on the loan","value":"C"},{"text":"Any of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214924,"question":"import substitution is the replacement of ________ by domestic production under the protection of.","choices":[{"text":"exports, subsidies","value":"A"},{"text":"Exports, patents","value":"B"},{"text":"imports, high tariffs or import quotes","value":"C"},{"text":"Imports, subsidies","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214923,"question":"LDC's often have a comparative advantage in the production of.","choices":[{"text":"Primary products","value":"A"},{"text":"Intermediate products","value":"B"},{"text":"Manufactured products","value":"C"},{"text":"Financial services.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214922,"question":"All of the following represent obstacles to LDC development except.","choices":[{"text":"Resource scarcity","value":"A"},{"text":"Low level of investment","value":"B"},{"text":"Low population","value":"C"},{"text":"Poor infrastructure","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214921,"question":"Output fell sharply in the transition economies because.","choices":[{"text":"Banks were undoable to function","value":"A"},{"text":"There was little corporate control","value":"B"},{"text":"Vital infrastructure was missing","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214920,"question":"Economic transition involves high inflation because ______ and _____","choices":[{"text":"High monetary growth, high wages.","value":"A"},{"text":"High budget deficits, devaluation","value":"B"},{"text":"High monetary growth, devaluation","value":"C"},{"text":"Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214919,"question":"If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.","choices":[{"text":"An import subsidy","value":"A"},{"text":"A quota","value":"B"},{"text":"Comparative advantage","value":"C"},{"text":"An export subsidy","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214918,"question":"An optimal tariff is one which reduces imports to the level at which ___ equals","choices":[{"text":"imports , exports","value":"A"},{"text":"The balance of trade, zero","value":"B"},{"text":"The demand for currency, the supply of currency","value":"C"},{"text":"Social marginal cost social marginal benefit","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214917,"question":"A tariff causes domestic firms to __________ and consumers to","choices":[{"text":"Overproduced, under consume","value":"A"},{"text":"overproduce , overconsume","value":"B"},{"text":"Underproduce, under consume","value":"C"},{"text":"underproduce, overconsume","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214916,"question":"The imposition of a tariff causes consumption to _______ and imports to.","choices":[{"text":"rise , rise","value":"A"},{"text":"fall , rise","value":"B"},{"text":"fall , fall","value":"C"},{"text":"rise , fall","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214915,"question":"The level of the equilibrium exchange rate offsets international difference in.","choices":[{"text":"Comparative advantage","value":"A"},{"text":"Absolute advantage","value":"B"},{"text":"Opportunity cost","value":"C"},{"text":"Relative costs","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214914,"question":"The main cause of different relative costs between countries are.","choices":[{"text":"Relative factors competition","value":"A"},{"text":"Relative factor mobility","value":"B"},{"text":"Relative factor substitution","value":"C"},{"text":"Relative factor endowments","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214913,"question":"International difference in opportunity costs lead to countries acquiring.","choices":[{"text":"Comparative advantage","value":"A"},{"text":"High exchange rates","value":"B"},{"text":"Trade exchange rates","value":"C"},{"text":"Trade barriers","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214912,"question":"International specialization takes place because of.","choices":[{"text":"Differences in technology","value":"A"},{"text":"Differences in factor endowments","value":"B"},{"text":"Scale economies","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214911,"question":"Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.","choices":[{"text":"Imperfect labour markets","value":"A"},{"text":"Rational expectations","value":"B"},{"text":"Intertemporal decisions of households firms and government.","value":"C"},{"text":"Sun spot cycles","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214910,"question":"The business cycle is not transmitted from one country to another through.","choices":[{"text":"Private sector imports and exports","value":"A"},{"text":"Economic policy","value":"B"},{"text":"The duration of compulsory education","value":"C"},{"text":"Labour supply changes","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214909,"question":"Real business cycle theories suggest that _____ to correct departures from the desired growth path.","choices":[{"text":"There is a role of fiscal policy","value":"A"},{"text":"There is a role for monetary policy","value":"B"},{"text":"There is a role for supply side policies","value":"C"},{"text":"There is no case for stabilizing output over the business cycle.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214908,"question":"Real business cycle are cycles in","choices":[{"text":"Potential output","value":"A"},{"text":"Actual output","value":"B"},{"text":"Real output","value":"C"},{"text":"International trade","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214907,"question":"The impossibility of negative gross investment provides a______ to fluctuations in.","choices":[{"text":"Celling, stock building","value":"A"},{"text":"Celling, capital prices","value":"B"},{"text":"floor , output","value":"C"},{"text":"floor , the capital output ratio","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214906,"question":"Real business cycle theory suggests that __________ not important in explaining short term fluctuations around actual output.","choices":[{"text":"aggregate supply is","value":"A"},{"text":"aggregate demand is","value":"B"},{"text":"Potential output is","value":"C"},{"text":"Real variables are","value":"D"},{"value":"E"}],"correctAnswer":2}]