Question 1

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

Accepted Answer

A)  raises; more 
B)  raises; less 
C)  lowers; more 
D)  lowers; less 
A)  raises; more 
B)  raises; less 
C)  lowers; more 
D)  lowers; less

Question 2

The United States SRAS curve may shift to the left if we ____________________ Malaysia and the dollar ________________ against the Malaysian ringgit.

Accepted Answer

A)  buy raw materials from; appreciates 
B)  buy raw materials from; depreciates 
C)  sell finished goods to; appreciates 
D)  sell finished goods to; depreciates 
A)  buy raw materials from; appreciates 
B)  buy raw materials from; depreciates 
C)  sell finished goods to; appreciates 
D)  sell finished goods to; depreciates

Question 3

List and describe two costs and two benefits of globalization as discussed in the textbook. Why does it tend to be more difficult to see the benefits of globalization as compared to the costs of globalization?

Accepted Answer

Some of the benefits of globalization in

Question 4

Inshoring occurs when a foreign country sets up operations in the United States and employs American employees.

Accepted Answer

A) True 
 B)False

Question 5

The problems of physical distance can be _____________ by technology which can serve to ___________ trade.

Accepted Answer

A)  increased; discourage 
B)  reduced; enhance 
C)  increased; enhance 
D)  reduced; discourage 
A)  increased; discourage 
B)  reduced; enhance 
C)  increased; enhance 
D)  reduced; discourage

Question 6

According to the text,in which of the following countries was tipping found to occur very infrequently?

Accepted Answer

A)  Mexico 
B)  United States 
C)  Egypt 
D)  Vietnam 
A)  Mexico 
B)  United States 
C)  Egypt 
D)  Vietnam

Question 7

A simultaneous rightward shift in SRAS and leftward shift in AD may come from a dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

Accepted Answer

A)  depreciation; rise 
B)  depreciation; fall 
C)  appreciation; rise 
D)  appreciation; fall 
A)  depreciation; rise 
B)  depreciation; fall 
C)  appreciation; rise 
D)  appreciation; fall

Question 8

Increased deficit financing,following the use of expansionary fiscal policy by the U.S.,will raise U.S.interest rates and causes the dollar to appreciate.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

Accepted Answer

A)  an increase in foreign input prices 
B)  an appreciation of the dollar 
C)  a depreciation of the dollar 
D)  a and b 
E)  none of the above 
A)  an increase in foreign input prices 
B)  an appreciation of the dollar 
C)  a depreciation of the dollar 
D)  a and b 
E)  none of the above

Question 10

Suppose a case of French wine has a price of 1,500 euros. To a U.S.wine importer,its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro,which means the euro has a ____________ dollar price.

Accepted Answer

A)  depreciating; higher 
B)  depreciating; lower 
C)  appreciating; higher 
D)  appreciating; lower 
A)  depreciating; higher 
B)  depreciating; lower 
C)  appreciating; higher 
D)  appreciating; lower

Question 11

As the dollar depreciates,the foreign price of United States goods _________________,ultimately shifting the United States AD curve _____________.

Accepted Answer

A)  rises; rightward 
B)  rises; leftward 
C)  falls; rightward 
D)  falls; leftward 
A)  rises; rightward 
B)  rises; leftward 
C)  falls; rightward 
D)  falls; leftward

Question 12

In a two-country world (consisting of country X and country Y),an increase in Real GDP in country X will shift country Y's AD curve leftward.

Accepted Answer

A) True 
 B)False

Question 13

Capitalism is the economic system that best describes what is currently happening in the world economy.

Accepted Answer

A) True 
 B)False

Question 14

Suppose the dollar depreciates in value in the foreign exchange markets. What is the impact on U.S.Real GDP?

Accepted Answer

A)  It rises because dollar depreciation shifts the U.S. AD curve rightward. 
B)  It falls because dollar depreciation shifts the U.S. SRAS curve leftward. 
C)  There is no effect on Real GDP since dollar depreciation does not affect either the U.S. AD or the U.S. SRAS curve. 
D)  It depends on whether the U.S. AD curve shifts rightward by more or less than the U.S. SRAS curve shifts leftward. 
A)  It rises because dollar depreciation shifts the U.S. AD curve rightward. 
B)  It falls because dollar depreciation shifts the U.S. SRAS curve leftward. 
C)  There is no effect on Real GDP since dollar depreciation does not affect either the U.S. AD or the U.S. SRAS curve. 
D)  It depends on whether the U.S. AD curve shifts rightward by more or less than the U.S. SRAS curve shifts leftward.

Question 15

It is often easier to see the ___________ of globalization than it is to see the _____________. This is because the costs tend to be more ________________,while the benefits tend to be

Accepted Answer

A)  costs; benefits; concentrated; widely dispersed. 
B)  benefits; costs; concentrated; widely dispersed. 
C)  costs; benefits; widely dispersed; concentrated. 
D)  benefits; costs; widely dispersed; concentrated. 
A)  costs; benefits; concentrated; widely dispersed. 
B)  benefits; costs; concentrated; widely dispersed. 
C)  costs; benefits; widely dispersed; concentrated. 
D)  benefits; costs; widely dispersed; concentrated.

Question 16

If Japan's Real GDP falls,this tends to _________________ United States exports,shifting the United States AD curve to the _____________________.

Accepted Answer

A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left. 
A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left.

Exam 36: Globalization and International Impacts on the Economy

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

The United States SRAS curve may shift to the left if we ____________________ Malaysia and the dollar ________________ against the Malaysian ringgit.

List and describe two costs and two benefits of globalization as discussed in the textbook. Why does it tend to be more difficult to see the benefits of globalization as compared to the costs of globalization?

Inshoring occurs when a foreign country sets up operations in the United States and employs American employees.

The problems of physical distance can be _____________ by technology which can serve to ___________ trade.

According to the text,in which of the following countries was tipping found to occur very infrequently?

A simultaneous rightward shift in SRAS and leftward shift in AD may come from a dollar _______________ in the aftermath of a ____________________ in United States real interest rates.

Increased deficit financing,following the use of expansionary fiscal policy by the U.S.,will raise U.S.interest rates and causes the dollar to appreciate.

Which of the following will lead to a rightward shift in the U.S.SRAS curve?

Suppose a case of French wine has a price of 1,500 euros. To a U.S.wine importer,its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro,which means the euro has a ____________ dollar price.

As the dollar depreciates,the foreign price of United States goods _________________,ultimately shifting the United States AD curve _____________.

In a two-country world (consisting of country X and country Y),an increase in Real GDP in country X will shift country Y's AD curve leftward.

Capitalism is the economic system that best describes what is currently happening in the world economy.

Suppose the dollar depreciates in value in the foreign exchange markets. What is the impact on U.S.Real GDP?

It is often easier to see the ___________ of globalization than it is to see the _____________. This is because the costs tend to be more ________________,while the benefits tend to be

If Japan's Real GDP falls,this tends to _________________ United States exports,shifting the United States AD curve to the _____________________.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

Contractionary fiscal policy _ Real GDP in an open economy than in a closed economy.

The United States SRAS curve may shift to the left if we ____ Malaysia and the dollar against the Malaysian ringgit.

The problems of physical distance can be ___ by technology which can serve to _ trade.

A simultaneous rightward shift in SRAS and leftward shift in AD may come from a dollar _ in the aftermath of a ______ in United States real interest rates.

Suppose a case of French wine has a price of 1,500 euros. To a U.S.wine importer,its price falls from $300 to $280. This could happen as a result of the dollar _ against the euro,which means the euro has a __ dollar price.

As the dollar depreciates,the foreign price of United States goods _____,ultimately shifting the United States AD curve _.

It is often easier to see the _____ of globalization than it is to see the _. This is because the costs tend to be more __________,while the benefits tend to be

If Japan's Real GDP falls,this tends to _ United States exports,shifting the United States AD curve to the _____.