LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The time available for each country A and B is 100 working

hours. The working hours will be divided equally to produce bread and wine.

Country A needs 5 working hours to produce 1 unit of bread and 10 working hours

to produce 1 unit of wine. Country B need 10 hours to produce 1 unit of bread

and 5 working hour to produce 1 unit of wine. What is the maximum production if

there is country specialization?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Compare a managed float and free float exchange rate regime.

Which central bank will be more passive in the foreign exchange market?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

A managed float exchange rates tend to be attacked by

speculators relative to free float exchang rate regime.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Consider a managed float rate exchange rate regime. What is

the correcting mechanism if export and import activities result in a surplus or

deficit?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Competitive advantage may result in one country losing

economic benefits.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Comparative advantage and competitive advantages will

benefit countries with higher competencies.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

A central bank launches a retail digital currency (CBDC) to improve monetary control. How might this influence inflation and unemployment in the short run?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory