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Q. Under fixed exchange rate, which one of the following statements is the most accurate?

Q. Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?

Q. Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:

Q. Countries H and F operate in an H-O world. Each country produces two goods, A and B. Good A is relatively capital intensive and country F is relatively labor abundant. Suppose however, that the production technology is not the same in the two countries. That is, H has a superior technology of production compared to F.

Q. ------------theory states that countries which are rich in labour will export labour intensive goods and countries which are rich in capital will export capital intensive goods

Q. Pure theory of international trade is termed so because

Q. The North American Free Trade Agreement

Q. Which balance-of-payments item does not directly enter into the calculation of the U.S.gross domestic product?

Q. Debt (–) items in the balance of payments correspond to anything that:

Q. Opportunity cost theory