Question 1
In 2015, the three world's largest exporters in descending order were
◦ China, USA, Germany.
◦ USA, China, Germany.
◦ China, Japan, USA.
◦ USA, China, Japan.
Question 2
For any pair of countries, there is
◦ a range of possible exchange rates that can lead indirectly to both countries realising the gains from specialisation and comparative advantage.
◦ a range of possible exchange rates that can lead indirectly to one country realising the gains from specialisation and comparative advantage, but not the other country.
◦ one single exchange rate that will lead indirectly to one country realising the gains from specialisation and comparative advantage, but not the other country.
◦ one single exchange rate that will lead automatically to both countries realising the gains from specialisation and comparative advantage.