Answer the following questions true (T) or false (F)
1. Autarky is a situation where one country does not trade with other countries.
2. The ratio at which a country can trade its exports for imports from other countries is called comparative advantage.
3. A tariff is a numerical limit on the quantity of a good that can be imported.
1. TRUE
2. FALSE
3. FALSE
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Which of the following is TRUE?
A) Russia is more dependent of international trade than Brazil. B) Exports and imports are rising more slowly than GDP in the BRIC countries. C) China was the last of the BRICs to start economic reforms. D) All of the BRIC countries had to transition from socialist or communist systems.
The classical and Monetarist models agree that
a. the use of fiscal policy can stabilize output. b. money demand is inherently unstable. c. the public has perfect information about the price level. d. increases in the money supply are the primary cause of inflation. e. none of the above