Professional Documents
Culture Documents
2-2
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 - Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo
a. both countries could gain from trade at the same time, but the distribution of the gains
depended upon the terms of trade.
b. both countries could gain from trade at the same time, and the terms of trade were of
no consequence for the distribution of the gains.
c. neither country could ever gain from trade.
* d. one country’s gain from trade was associated with a loss for the other country.
9. If the demand for traded goods is price-inelastic, the price-specie-flow mechanism will
result in
a. gold movements between countries that remove trade deficits and surpluses.
* b. gold movements between countries that worsen trade deficits and surpluses.
c. negligible movements of gold between countries and hence little or no adjustment of
trade deficits and surpluses.
d. a removal of the basis for trade between countries.
11. Which of the following policies would NOT be consistent with the Mercantilist balance-
of-trade doctrine?
2-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 - Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo
a. countries are at full employment and the demands for traded goods are
“inelastic.”
b. countries are at full employment and the price level of a country moves in
inverse proportion to movements in the country’s money supply.
c. a country with a balance-of-payments deficit will experience a gold outflow
and countries are at a level of employment that is below full employment.
* d. the demands for traded goods are “elastic” and countries are at full
employment.
13. During the price-specie-flow adjustment process to a trade imbalance, if demands for
goods are inelastic, then, when the price level in the country with the trade
deficit, the value of that country’s exports will as the price-specie-flow
process takes place.
a. falls; increase
* b. falls; decrease
c. rises; increase
d. rises; decrease
2-4
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 - Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo
18. In the context of David Hume’s price-specie-flow mechanism that challenged the
feasibility of the Mercantilist ideas regarding a trade surplus, which one of the following
statements is NOT correct?
2-5
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Another random document with
no related content on Scribd:
Jenson was afforded any opportunity for exercising his art in Paris
Footnote 320
Footnote 452
Errata
p. 255
Ibun-l-abbáns and Ibun-l-abbar should read Ibn al-Abbar
p. xxviii, Footnote 254, 303, 375
Bibliothèque de l’École de Chartres should read Bibliothèque de l’École de
Chartes
p. 462, 463
The address New York: 29 West 23d St. London: 24 Bedford St., Strand
should read New York: 27 West 23d St. London: 24 Bedford St., Strand
*** END OF THE PROJECT GUTENBERG EBOOK BOOKS AND
THEIR MAKERS DURING THE MIDDLE AGES ***
1.D. The copyright laws of the place where you are located also
govern what you can do with this work. Copyright laws in most
countries are in a constant state of change. If you are outside
the United States, check the laws of your country in addition to
the terms of this agreement before downloading, copying,
displaying, performing, distributing or creating derivative works
based on this work or any other Project Gutenberg™ work. The
Foundation makes no representations concerning the copyright
status of any work in any country other than the United States.
1.E.6. You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form,
including any word processing or hypertext form. However, if
you provide access to or distribute copies of a Project
Gutenberg™ work in a format other than “Plain Vanilla ASCII” or
other format used in the official version posted on the official
Project Gutenberg™ website (www.gutenberg.org), you must, at
no additional cost, fee or expense to the user, provide a copy, a
means of exporting a copy, or a means of obtaining a copy upon
request, of the work in its original “Plain Vanilla ASCII” or other
form. Any alternate format must include the full Project
Gutenberg™ License as specified in paragraph 1.E.1.
• You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg™ works calculated using the
method you already use to calculate your applicable taxes. The
fee is owed to the owner of the Project Gutenberg™ trademark,
but he has agreed to donate royalties under this paragraph to
the Project Gutenberg Literary Archive Foundation. Royalty
payments must be paid within 60 days following each date on
which you prepare (or are legally required to prepare) your
periodic tax returns. Royalty payments should be clearly marked
as such and sent to the Project Gutenberg Literary Archive
Foundation at the address specified in Section 4, “Information
about donations to the Project Gutenberg Literary Archive
Foundation.”
• You comply with all other terms of this agreement for free
distribution of Project Gutenberg™ works.
1.F.
Most people start at our website which has the main PG search
facility: www.gutenberg.org.