Many countries were fixing the price of their currency in terms of gold:

Related MCQs

• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• If { } > { } when K= capital and L= labour, Pk is price of capital and Pl is price of labour and A and B are countries then
• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• ------------theory states that countries which are rich in labour will export labour intensive goods and countries which are rich in capital will export capital intensive goods
• Trade between two countries can benefit both countries if
• Countries H and F operate in an H-O world. Each country produces two goods, A and B. Good A is relatively capital intensive and country F is relatively labor abundant. Suppose however, that the production technology is not the same in the two countries. That is, H has a superior technology of production compared to F.
• Which of the following EU countries are sometimes referred to as the PIGS countries?
• The terms of trade of developing countries have a secular tendency to
• In the Ricardian model, when two countries trade freely, the relative price of the goods they are trading is determined by:
• If a nations terms of trade is ½ its trade partners terms of trade is