12 According to the Heckscher-Ohlin model, the source of comparative advantage is a country’s _____.
(A) technology
(B) factor endowments
(C) human capital
(D) trade policy

13 If a good is imported into a small country like S from a large country like F, then the imposition of a tariff in Country S _____. (A) lowers the price of the good in S and raises it in F (B) raises the price of the good in S and lowers it in F (C) raises the price of the good in both countries (D) raises the price in Country S and does not affect its price in Country F

14 In the exporting country, an export subsidy in the short run will _____. (A) help consumers and raise the overall economic welfare of the exporting country (B) help consumers but lower economic welfare of the exporting country (C) hurt consumers and lower the overall economic welfare of the exporting country (D) hurt consumers but raise the overall economic welfare of the exporting country

15 The important difference between tariffs and quotas is that tariffs _____. (A) generate tax revenue for the government (B) raise the price of the good (C) help domestic producers (D) stimulate international trade

16 The situation when export-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all is called _____. (A) distorted growth (B) immiserizing growth (C) imbalanced growth (D) misalignment growth

17 Which of the following transactions is a debit in a country’s current account? (A) Export of merchandise. (B) Gifts to foreigners. (C) Foreign bond purchases. (D) Export of services.

18 Which of the following is NOT a feature of a common market? (A) Free trade in goods and services between the members. (B) Common external barriers to trade. (C) Substantial coordination of macroeconomic policies among the members. (D) Factor mobility.

19 Which of the following does NOT appear in the current account part of the balance of payments? (A) A loan of $1 million from Bank of America to Brazil. (B) Foreign aid to El Salvador. (C) An Air France ticket bought by an American. (D) Income earned by General Motors from its plants abroad.

20 The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why do governments restrict imports of some goods? (A) Restrictions on imports can have significant beneficial effects on domestic consumers. (B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. (C) Imports are only restricted when foreign-made goods do not meet domestic standards of quality. (D) Trade can have significant harmful effects on some segments of a country’s economy.

1 The Airbnb owner requested______ for the sabotage of the furniture by her customers. (A) consumption (B) construction (C) consolidation (D) compensation

2 The data showed that female startup founders found the most success at North American schools, but the number was far from that of their male______. (A) capability (B) caretakers (C) cholesterol (D) counterparts

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