Economics MCQs

A. appreciation in the value of both currencies
B. depreciation in the value of both currencies
C. appreciation in the value of the yen against the mark
D. depreciation in the value of the yen against the mark

A. import prices to fall by 10 percent
B. import prices to rise by 10 percent
C. export prices to rise by 10 percent
D. export prices to fall by 10 percent

A. should increase the dollar value of exports
B. should not have any effect on the dollar value of u.s imports
C. must increase the balance of trade
D. all of the above

A. improves
B. worsens
C. is unaffected
D. falls for a while before increasing

A. sooner
B. longer
C. bigger
D. smaller

A. increases
B. decreases
C. does not change
D. none of the above

A. elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4
B. elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3
C. elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7
D. elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6

A. trade surplus in the short run
B. trade surplus in the long run
C. trade deficit in the short run
D. trade deficit in the long run

A. official exchange rates
B. complete currency pass through
C. exchange arbitrage
D. trade adjustment assistance

A. j curve effect
B. marshall lerner effect
C. absorption effect
D. pass through effect