Question 41 Which of the following is most important in determining the number o

Question

Question 41

Which of the following is most important in determining the number of jobs in an economy?

Select one:

a. Tax policies

b. Trade policies

c. Environmental policies

d. Macroeconomic policies

e. Urban policies

Question 42

Which of the following is not a potential source of comparative advantage for China in the manufacturing sector?

Select one:

a. Abundant credit from China's government sector to set up manufacturing operations

b. Abundant low wage, low skill workers

c. Coastal areas with good logistics for international trade

d. A large domestic market that can lead to scale economies

Question 43

Raul Prebisch was an Argentine economist who argued that

Select one:

a. the terms of trade for high-income countries would inevitably worsen.

b. the terms of trade would decline for manufactured goods exports.

c. the terms of trade would decline for primary commodity exports.

d. the terms of trade for Latin American economies could not be improved.

Question 44

Environmental problems in China

Select one:

a. increase pressure for decentralization of power and authority from the ruling Communist party.

b. are improving at a rapid pace in Chinese urban areas.

c. are not recognized by local Chinese interests, but get large amounts of attention from global activists.

d. are generally not an issue domestically or globally.

Question 45

A slowing U.S. economy and increased enforcement of immigration laws will reduce ________ factors for Mexican immigration to the United States.

Select one:

a. demand growth

b. supply growth

c. supply push

d. network

e. demand pull

Explanation / Answer

41. Most important policy in determining the number of jobs in an economy is Macroeconomic policies. We know that the level of employment or jobs in an economy is purely dependent on a no. of policies taken by the government for employment as well the policies which relates to the growth of the economy.

You can notice in the options that Tax/Trade/Environmental/Urban policies are a part of macroeconomic policies itself.

Thus, Option D seems to be the correct answer.

42. Comparative advantage refers to the situation where a country like China can produce a commodity/service more efficiently than some other country.

Now, let’s look at the options and try to see what cannot serve as a potential source of comparative advantage for China in manufacturing sector.

Note that, for comparative advantage, it is important that we are efficient in what we produce.

We see that three options other than a large domestic market are related to availability of resources to China, which shows they have all the resources as compared to some other country.

On the other hand, we can see that a large domestic market to sell, do not have anything to do with how we can product or how efficient are we in producing goods and services. It is more to do with how good we can sell.

Thus, Option D is the correct answer.

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