Intermediate Macroeconomics (ECST3201)
DIPET 1 in Economics - ECNT
Semester: Second Semester
Level: 300
Year: 2013
THE UNIVERSITY OF BAMENDA
HIGHER TECHNICAL TEACHERS TRAINING COLLEGE BAMENDA-BAMBILI
OF ECONOMIC SCIENCES
FIRST SEMESTER EXAMINATION—International Economics 2Q12/2013(L2)
INSTRUCTIONS: Attempt all questions in the order in which they appear. Time allowed is Two (2) hours.
Section I (10 marks)
1) Why do Less Developing Countries often suffer from persistent deterioration in their terms of trade?
2) Suggest measures which can be taken to remedy and or resolve the problem.
Section II
1) Why is the exportation of capital a debited operation in the balance of payments table?........................................
2) What is transfer pricing? …………………………………………………………………………………………..
3) The purchase of bonds and depositing funds in a local bank by a foreign company is an example of …………..
4) What is the importance of the settlement account of the balance of payment ……………………………………
5) An important condition for market-seeking multinational firms is ‘market structure’. This is defined as……….
6) A percentage growth cf imports resulting from a percentage growth of a country’s national income describes…
7) Indexation of Less Developing Countries’ exports was one of the- major proposals at the New International
Economic Order (NEO) in 1974. What does indexation mean?..............................................................................
8) The importance of Adam Smith's theory of international trade us that ………………………………………..
9) Prof. HARBERLER in 1961 differentiated international Economics from general economics and other branches
in terms of ……………………………………………………………………………………………………………
10) The Mercantilist doctrine of international trade centred on two principal views? ……………………………..
11) Assuming that two countries trading with each other decide each, to practice consequently change their offer
curves respectively which of the two benefits from this new trade situation?
12) A Multinational Enterprise is defined as: (A) An international monopoly firm. B) A. firm with many
subsidiaries. C) corporation with foreign subsidises. (D) A firm that is very large in size.
13) A qualitative market in contrast to a quantitative (size) market is defined in terms of (A) Population size
B) Population composition (C) The ability to pay (D) The quality of .products.
14) How can a country’s favourable terms, of trade affect its environment if it aims at raising a given income?
(A) By increasing its incomes from trade B) Increasing the exploitation of its resources (C) By degrading the forest
more and more (D) Will help to preserve the exportable resource's
15) An equilibrium balance of payments (A) Is when total imports of die
country
equal its exports B) a state of
balance that tends to adjust itself when disturbed C) Is a stable balance of payments equilibrium (D) Is a balance
that requires no external intervention.
16) The multiplier in an open economy (l/s+m) is smaller than that of a closed
economy
(1/1-c) because: (A) Of
Exports (B) Balance of trade (C) Importation (D) Unfavourable balance of payments.
17) The demand for foreign exchange A) is determined by the supply of foreign goods (B)is derived from demand
(C) Can be used for the adjustment of a country’s balance of payments (D) Increase's when a country wants to fight
a deficit balance of payments.
18) Dumping is principally, aimed at A) Selling cheaper abroad than at home (B) Creating unemployment. (C)
Permitting over production D) Making the product more competitive abroad.
19) Taking advantage of factor-endowment (A) is a theory elaborated by Heckscher in 1935. (B) is a theory
founded by Bertil Ohlin (C) Give the basis of countries’ production techniques (D) is a theory 1 production,
possibility frontiers
20) If we assume that in 1999 country Z could exchange zero volume of her exports with zero volume of W's and in
2000 the trade relationship revealed through their new offer curves was in the ratio 1:l.
A) Z now enjoys a
favourable terms of trade. (B) W now-enjoys a favourable terms of trade. (C)The terms of trade are equal. (D) W
’
s
goods are more valuable than those of country.
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