Question 1

International economics can be divided into two broad sub- fields

Accepted Answer

A) monetary and barter. 
B) developed and less developed. 
C) international trade and international money. 
D) macro and micro. 
E) static and dynamic. 
A) monetary and barter. 
B) developed and less developed. 
C) international trade and international money. 
D) macro and micro. 
E) static and dynamic. C

Question 2

The GATT is

Accepted Answer

A) a U.S.government agency. 
B) an international agreement. 
C) an international IMF agency. 
D) an international U.N.agency. 
E) a collection of tariffs. 
A) a U.S.government agency. 
B) an international agreement. 
C) an international IMF agency. 
D) an international U.N.agency. 
E) a collection of tariffs. B

Question 3

International capital markets experience a kind of risk not faced in domestic capital markets,namely

Accepted Answer

A) the risk of political upheaval. 
B) the risk of unexpected downgrading of assets by Standard and Poor. 
C) the risk of exchange rate fluctuations. 
D) "economic meltdown" risk. 
E) Flood and hurricane crisis risk. 
A) the risk of political upheaval. 
B) the risk of unexpected downgrading of assets by Standard and Poor. 
C) the risk of exchange rate fluctuations. 
D) "economic meltdown" risk. 
E) Flood and hurricane crisis risk. C

Question 4

The distinction between international trade and international money is NOT entirely clear because

Accepted Answer

A) trade models focus on real,or barter relationships. 
B) most international trade involves monetary transactions. 
C) the balance of payments includes only real measures. 
D) real developments in the trade accounts do not have monetary implications. 
E) developments caused by purely monetary changes have no real effects. 
A) trade models focus on real,or barter relationships. 
B) most international trade involves monetary transactions. 
C) the balance of payments includes only real measures. 
D) real developments in the trade accounts do not have monetary implications. 
E) developments caused by purely monetary changes have no real effects.

Question 5

The balance of payments has become a central issue for the United States because

Accepted Answer

A) the U.S.economy cannot grow when the balance of payments is in deficit. 
B) the U.S.has run huge trade deficits in every year since 1982. 
C) the U.S.never experienced a surplus in its balance of payments. 
D) when the balance of payments is not balanced,society is unbalanced. 
E) the U.S.once ran a large trade surplus of about $40 billion. 
A) the U.S.economy cannot grow when the balance of payments is in deficit. 
B) the U.S.has run huge trade deficits in every year since 1982. 
C) the U.S.never experienced a surplus in its balance of payments. 
D) when the balance of payments is not balanced,society is unbalanced. 
E) the U.S.once ran a large trade surplus of about $40 billion.

Question 6

Cost- benefit analysis of international trade

Accepted Answer

A) focuses attention primarily on conflicts of interest within countries. 
B) focuses attention on conflicts of interest between countries. 
C) never leads to government intervention in international trade. 
D) is empirically intractable. 
E) is basically useless. 
A) focuses attention primarily on conflicts of interest within countries. 
B) focuses attention on conflicts of interest between countries. 
C) never leads to government intervention in international trade. 
D) is empirically intractable. 
E) is basically useless.

Question 7

From 1950 to 2015

Accepted Answer

A) U)S.imports roughly tripled in size. 
B) the share of U.S.trade in the global economy roughly tripled in size. 
C) U)S.exports roughly tripled in size. 
D) the U.S.economy roughly tripled in size. 
E) U)S.imports roughly tripled as compared to U.S.exports. 
A) U)S.imports roughly tripled in size. 
B) the share of U.S.trade in the global economy roughly tripled in size. 
C) U)S.exports roughly tripled in size. 
D) the U.S.economy roughly tripled in size. 
E) U)S.imports roughly tripled as compared to U.S.exports.

Question 8

Because the Constitution forbids restraints on interstate trade

Accepted Answer

A) the U.S.may not impose tariffs on imports from NAFTA countries. 
B) the U.S.may not disrupt commerce between Florida and Hawaii. 
C) the U.S.may not affect the international value of the $ U.S. 
D) the U.S.may not impose export duties. 
E) the U.S.may not put restraints on foreign investments in California if it involves a financial intermediary in New York State. 
A) the U.S.may not impose tariffs on imports from NAFTA countries. 
B) the U.S.may not disrupt commerce between Florida and Hawaii. 
C) the U.S.may not affect the international value of the $ U.S. 
D) the U.S.may not impose export duties. 
E) the U.S.may not put restraints on foreign investments in California if it involves a financial intermediary in New York State.

Question 9

International economics use the same fundamental methods of analysis as other branches of economics,because .

Accepted Answer

A) does not,international economics takes a different perspective on economic issues 
B) does not,the level of complexity of international issues is unique 
C) does,the motives and behavior of individuals are the same in international trade as they are in domestic transactions 
D) does not,international economic policy requires cooperation with other countries 
E) does not,the interactions associated with international economic relations is highly mathematical 
A) does not,international economics takes a different perspective on economic issues 
B) does not,the level of complexity of international issues is unique 
C) does,the motives and behavior of individuals are the same in international trade as they are in domestic transactions 
D) does not,international economic policy requires cooperation with other countries 
E) does not,the interactions associated with international economic relations is highly mathematical

Question 10

The United States is less dependent on trade than most other countries because

Accepted Answer

A) the United States is a relatively large country with diverse resources. 
B) the United States invests in many other countries. 
C) many countries invest in the United States. 
D) the United States is a "Superpower." 
E) the military power of the United States makes it less dependent on anything. 
A) the United States is a relatively large country with diverse resources. 
B) the United States invests in many other countries. 
C) many countries invest in the United States. 
D) the United States is a "Superpower." 
E) the military power of the United States makes it less dependent on anything.

Question 11

In September 2010,the finance minister of declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the .

Accepted Answer

A) Japan; yen 
B) Germany; euro 
C) China; renminbi 
D) England; pound sterling 
E) Brazil; Real 
A) Japan; yen 
B) Germany; euro 
C) China; renminbi 
D) England; pound sterling 
E) Brazil; Real

Question 12

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Accepted Answer

A) Adam Smith. 
B) David Hume. 
C) Lerner and Samuelson. 
D) David Ricardo. 
E) Eli Heckscher. 
A) Adam Smith. 
B) David Hume. 
C) Lerner and Samuelson. 
D) David Ricardo. 
E) Eli Heckscher.

Question 13

Who sells what to whom

Accepted Answer

A) is determined by political rather than economic factors. 
B) is less important than international economic theory. 
C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market. 
D) is not a valid concern of international economics. 
E) has been a major preoccupation of international economics. 
A) is determined by political rather than economic factors. 
B) is less important than international economic theory. 
C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market. 
D) is not a valid concern of international economics. 
E) has been a major preoccupation of international economics.

Question 14

Trade theorists have proven that the gains from international trade

Accepted Answer

A) will always help "winners" by an amount exceeding the losses of "losers." 
B) must raise the economic welfare of every country engaged in trade. 
C) must raise the economic welfare of everyone in every country engaged in trade. 
D) usually outweigh the benefits of protectionist policies. 
E) must harm owners of "specific" factors of production. 
A) will always help "winners" by an amount exceeding the losses of "losers." 
B) must raise the economic welfare of every country engaged in trade. 
C) must raise the economic welfare of everyone in every country engaged in trade. 
D) usually outweigh the benefits of protectionist policies. 
E) must harm owners of "specific" factors of production.

Question 15

A fundamental problem in international economics is how to produce

Accepted Answer

A) an acceptable degree of harmony among the international trade policies of different countries. 
B) a perfect degree of monetary harmony. 
C) a world government that can harmonize trade and monetary policies 
D) a worldwide form of currency. 
E) a counter- cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country. 
A) an acceptable degree of harmony among the international trade policies of different countries. 
B) a perfect degree of monetary harmony. 
C) a world government that can harmonize trade and monetary policies 
D) a worldwide form of currency. 
E) a counter- cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country.

Question 16

Theories of international economics from the 18th and 19th centuries are

Accepted Answer

A) highly relevant in today's modern international economy. 
B) the only theories that are actually relevant to modern international economy. 
C) not relevant to current policy analysis. 
D) not well understood by modern mathematically oriented theorists. 
E) only of moderate relevance in today's modern international economy. 
A) highly relevant in today's modern international economy. 
B) the only theories that are actually relevant to modern international economy. 
C) not relevant to current policy analysis. 
D) not well understood by modern mathematically oriented theorists. 
E) only of moderate relevance in today's modern international economy.

Question 17

The benefits of international trade are derived from trade in

Accepted Answer

A) goods but not services. 
B) tangible goods only. 
C) anything of value. 
D) intangible goods only. 
E) services but not goods. 
A) goods but not services. 
B) tangible goods only. 
C) anything of value. 
D) intangible goods only. 
E) services but not goods.

Question 18

The international capital market is

Accepted Answer

A) the arrangement where banks build up their capital by borrowing from the Central Bank. 
B) exclusively concerned with the debt crisis that ended in the 1990s. 
C) the place where you can rent earth moving equipment anywhere in the world. 
D) the place where emerging economies accept capital invested by banks. 
E) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. 
A) the arrangement where banks build up their capital by borrowing from the Central Bank. 
B) exclusively concerned with the debt crisis that ended in the 1990s. 
C) the place where you can rent earth moving equipment anywhere in the world. 
D) the place where emerging economies accept capital invested by banks. 
E) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future.

Question 19

Which of the following does NOT belong?

Accepted Answer

A) non- tariff barriers 
B) World Trade Organization 
C) major free trade agreements of the 1990s 
D) Uruguay Round 
E) NAFTA 
A) non- tariff barriers 
B) World Trade Organization 
C) major free trade agreements of the 1990s 
D) Uruguay Round 
E) NAFTA

Question 20

If there are large disparities in wage levels between countries,then

Accepted Answer

A) trade is likely to be harmful to the country with the high wages. 
B) trade is likely to have no effect on either country. 
C) trade is likely to be harmful to both countries. 
D) trade is likely to be harmful to the country with the low wages. 
E) trade is likely to be harmful to neither country. 
A) trade is likely to be harmful to the country with the high wages. 
B) trade is likely to have no effect on either country. 
C) trade is likely to be harmful to both countries. 
D) trade is likely to be harmful to the country with the low wages. 
E) trade is likely to be harmful to neither country.

International economics can be divided into two broad sub- fields

The GATT is

International capital markets experience a kind of risk not faced in domestic capital markets,namely

The distinction between international trade and international money is NOT entirely clear because

The balance of payments has become a central issue for the United States because

Cost- benefit analysis of international trade

From 1950 to 2015

Because the Constitution forbids restraints on interstate trade

International economics use the same fundamental methods of analysis as other branches of economics,because .

The United States is less dependent on trade than most other countries because

In September 2010,the finance minister of declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the .

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Who sells what to whom

Trade theorists have proven that the gains from international trade

A fundamental problem in international economics is how to produce

Theories of international economics from the 18th and 19th centuries are

The benefits of international trade are derived from trade in

The international capital market is

Which of the following does NOT belong?

If there are large disparities in wage levels between countries,then

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters

Exam 1: Introduction

International economics can be divided into two broad sub- fields

The GATT is

International capital markets experience a kind of risk not faced in domestic capital markets,namely

The distinction between international trade and international money is NOT entirely clear because

The balance of payments has become a central issue for the United States because

Cost- benefit analysis of international trade

From 1950 to 2015

Because the Constitution forbids restraints on interstate trade

International economics use the same fundamental methods of analysis as other branches of economics,because .

The United States is less dependent on trade than most other countries because

In September 2010,the finance minister of declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the .

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Who sells what to whom

Trade theorists have proven that the gains from international trade

A fundamental problem in international economics is how to produce

Theories of international economics from the 18th and 19th centuries are

The benefits of international trade are derived from trade in

The international capital market is

Which of the following does NOT belong?

If there are large disparities in wage levels between countries,then

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters