Question

A) In the Benefits of Trade Video, Week 1, the narrator argues that a country can theoretically have a comparative advantage for two goods (or all goods) when compared to another country that is also producing the same two goods?

True

False

B) Which of the following European countries has a trade surpluse with the US as well as most other European countries (See Video on Deceptive Promise of Free Trade)?

		England
		Greece
		Ireland
		Spain
		Germany

C) If Country X has a nominal (nominal means stated, or without any adjustments) GDP of $20,000, Country Y has a nominal GDP of $30,000, Country Z has a nominal GDP of $40,000 and Country F has a nominal GDP of 415,000, which of the following has a higher per capita income?

		Country X
		Country Y
		Country Z
		Country F
		Can't tell based on the info provided

D) Globalization has helped decrease poverty, but, in some instances, makes the poor and developing countries more vulnerable to global economic shocks

True

False

E) When comparing per capita incomes, which of the following is NOT necessary:

		PPP adjustments made to income
		Figures (e.g. dollar amts) are for the same year
		Income estimates are derived using comparable methodologies
		An assessment of all regional assets, tangible and non-tangible

don't answer the first question

Answer 1

Questions A and B are video based and thus cannot be answered

Questions C-E are answered below

C.

Can't tell based on the info provided

Reason: Since no information on population is given, it is not possible to infer and calculate per capita income of each country

D.

True

Reason: This is because countries which could not stand the force of globalization and strong competition it comes with, become vulnerable

E.

An assessment of all regional assets, tangible and non tangible

Reason: This is not important in order to calculate per capita incomes of countries