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Econ2560 tut7

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1. The purpose of commodity buffer stocks is:
a. to moderate price fluctuations.
b. to raise commodity prices.
c. to encourage commodity substitution.
d. to guarantee national security.
2. Autarchy as used in the text refers to:
a. an economy that does not trade.
b. an economy that trades primary products in exchange for manufactures.
c. developing country dictatorships.
d. the caste system and related social structures.
3. Which of the following is an argument in favor of the liberalization?
a. Increased technical efficiency.
b. Accelerated technical progress.
c. Decreased shortages of foreign exchange.
d. All of the above.
4. Which of the following is an argument in favor of trade liberalization?
a. Increased investment.
b. Infant industry.
c. Fluctuating export earnings.
d. Increased government revenue.
5. Which of the following is a major argument of trade optimists?
a. Industrial policy can increase productivity of developing country manufacturing
efficiency.
b. New synthetic substitutes are constantly being discovered and improved.
c. Developing country efficiency would improve with trade liberalization.
d. All of the above.
6. Which of the following statements is true?
a. larger countries (in terms of size) tend to be more open (in terms of larger share of
exports in GDP) than smaller countries and developing countries tend to be less open
than developed economies.
b. larger countries (in terms of size) tend to be less open (in terms of lower share of exports
in GDP) than smaller countries and developing countries tend to be less open than
developed economies.
c. larger countries (in terms of size) tend to be more open (in terms of larger share of
exports in GDP) than smaller countries and developing countries tend to be more open
than developed economies.

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1. The purpose of commodity buffer stocks is: a. to moderate price fluctuations. b. to raise commodity prices. c. to encourage commodity substitution. d. to guarantee national security. 2. Autarchy as used in the text refers to: a. an economy that does not trade. b. an economy that trades primary products in exchange for manufactures. c. developing country dictatorships. d. the caste system and related social structures. 3. Which of the following is an argument in favor of the liberalization? a. Increased technical efficiency. b. Accelerated technical progress. c. Decreased shortages of forei ...
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