* not completed

. If the value of the pound in other currencies is strong, then other things being equal:

The price of UK products abroad in foreign currency will fall correct incorrect

The price of UK products abroad in foreign currency will rise correct incorrect

The price of UK products in the UK will rise correct incorrect

The price of UK products in the UK will fall correct incorrect

* not completed

. If the value of the pound in terms of other currencies rises:

The spending on UK exports in pounds must rise correct incorrect

The spending on UK exports in foreign currency will rise if demand is price elastic correct incorrect

The demand for UK exports will rise correct incorrect

The spending on UK exports in foreign currency will fall if demand for UK exports is price elastic correct incorrect

* not completed

. The supply of pounds to the currency market will be upward sloping if:

The demand for UK exports is price elastic correct incorrect

The demand for UK exports is price inelastic correct incorrect

The demand for imports into the UK is price elastic correct incorrect

The demand for imports into the UK is price inelastic correct incorrect

* not completed

. A fall in the value of the pound is likely to decrease spending on imports if:

The price elasticity of demand for imports is price elastic correct incorrect

The price elasticity of demand for imports is price inelastic correct incorrect

The price elasticity of demand for imports has a unit price elasticity correct incorrect

The price elasticity of demand for exports is price elastic correct incorrect

* not completed

. If the exchange rate is above the equilibrium level then in a floating exchange rate system:

There is excess demand and the exchange rate should fall correct incorrect

There is excess supply and the exchange rate should fall correct incorrect

There is excess demand and the exchange rate should rise correct incorrect

There is excess supply and the exchange rate should rise correct incorrect

* not completed

. If the exchange rate is below the equilibrium level then in a floating exchange rate system:

There is excess demand and the exchange rate should fall correct incorrect

There is excess supply and the exchange rate should fall correct incorrect

There is excess demand and the exchange rate should rise correct incorrect

There is excess supply and the exchange rate should rise correct incorrect

* not completed

. To prevent the external value of its currency rising the government could:

Sell its own currency correct incorrect

Increase interest rates correct incorrect

Buy its own currency correct incorrect

Sell foreign currency correct incorrect

* not completed

. A depreciation of a currency occurs when:

The value of the currency falls correct incorrect

The value of the currency increases correct incorrect

Inflation falls correct incorrect

The balance of payments improves correct incorrect

* not completed

. An appreciation of the currency is likely to occur if:

Domestic interest rates fall correct incorrect

There is an increase in demand for imports correct incorrect

There is an increase in demand for exports correct incorrect

There is an increase in the balance of payments deficit correct incorrect

* not completed

. A fall in the external value of a currency:

May cause an outward shift in the demand for the currency correct incorrect

May cause an inward shift in the supply for the currency correct incorrect

May lead to a movement along the demand curve for a currency correct incorrect

May be due to an increase in demand for the country's exports correct incorrect

* not completed

. Common arguments in favour of globalization do not usually include:

Greater inequality correct incorrect

Boost world economic growth correct incorrect

Shares technology correct incorrect

Greater access for consumers to wider range of products correct incorrect

* not completed

. Free trade is based on the principle of:

Comparative advantage correct incorrect

Comparative scale correct incorrect

Economies of advantage correct incorrect

Production possibility advantage correct incorrect