Question 1

Interest Americans receive from foreign investments are unimportant in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 2

In the 1930s, the United States followed an isolationist policy toward trade.

Accepted Answer

A) True 
 B)False

Question 3

The relation of our total exports to our total imports is called the balance of:

Accepted Answer

A)  income. 
B)  payments. 
C)  trade. 
D)  money. 
A)  income. 
B)  payments. 
C)  trade. 
D)  money.

Question 4

If countries decide to stop accepting U.S. dollars and promissory notes and instead want goods and services, the value of the dollar will likely:

Accepted Answer

A)  fall substantially. 
B)  rise modestly. 
C)  decrease slightly. 
D)  be maintained. 
A)  fall substantially. 
B)  rise modestly. 
C)  decrease slightly. 
D)  be maintained.

Question 5

Invisible items of trade consist of services of all sorts for which people of one country pay those of another.

Accepted Answer

A) True 
 B)False

Question 6

U.S. producers as a group are injured by foreign purchases.

Accepted Answer

A) True 
 B)False

Question 7

The IMF has helped stabilize foreign exchange rates.

Accepted Answer

A) True 
 B)False

Question 8

Since the 1930s, the importance of international trade for the United States has:

Accepted Answer

A)  declined. 
B)  remained unchanged. 
C)  increased until 1950 and then sharply declined. 
D)  grown significantly. 
A)  declined. 
B)  remained unchanged. 
C)  increased until 1950 and then sharply declined. 
D)  grown significantly.

Question 9

The United States is the largest debtor nation in the world.

Accepted Answer

A) True 
 B)False

Question 10

Most economists oppose the levying of:

Accepted Answer

A)  all taxes. 
B)  protective tariffs. 
C)  any kind of minimal tariff. 
D)  any kind of revenue-generating tax by a government. 
A)  all taxes. 
B)  protective tariffs. 
C)  any kind of minimal tariff. 
D)  any kind of revenue-generating tax by a government.

Question 11

International trade now accounts for well over 50 percent of our total GDP.

Accepted Answer

A) True 
 B)False

Question 12

In the 1960s, 1970s, and 1980s, international trade expanded in the developing countries, mainly in the area of:

Accepted Answer

A)  farming. 
B)  textiles. 
C)  technology. 
D)  manufacturing. 
A)  farming. 
B)  textiles. 
C)  technology. 
D)  manufacturing.

Question 13

The 1970s marked a new dimension in the expansion of international trade.

Accepted Answer

A) True 
 B)False

Question 14

Trade is best seen as taking place between two countries without the other countries in the picture.

Accepted Answer

A) True 
 B)False

Question 15

In most cases, nations would derive the greatest economic advantage from international trade if they:

Accepted Answer

A)  tightly controlled imports. 
B)  allowed free trade. 
C)  controlled all types of trade. 
D)  eliminated all exports. 
A)  tightly controlled imports. 
B)  allowed free trade. 
C)  controlled all types of trade. 
D)  eliminated all exports.

Question 16

In the mid-1990s, GATT was replaced by the:

Accepted Answer

A)  Reciprocal Trade Group
(RTG). 
B)  International Commerce Circle
(IC
C) . 
C)  World Trade Organization
(WTO). 
D)  Global Corporation Group
(GCG). 
A)  Reciprocal Trade Group
(RTG). 
B)  International Commerce Circle
(IC
C) . 
C)  World Trade Organization
(WTO). 
D)  Global Corporation Group
(GCG).

Question 17

The home-market argument in favor of protective tariffs results in:

Accepted Answer

A)  decreases in home product industry employment. 
B)  decreases in protected home product industry profits. 
C)  short-term failure of home industry. 
D)  long-term benefits for some producers at the expense of losing foreign markets for other producers. 
A)  decreases in home product industry employment. 
B)  decreases in protected home product industry profits. 
C)  short-term failure of home industry. 
D)  long-term benefits for some producers at the expense of losing foreign markets for other producers.

Question 18

International trade has only advantages.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an argument against protective tariffs?

Accepted Answer

A)  Restricting international trade robs us of part of its benefits. 
B)  Free admission of imports is one of the most effective ways of expanding the foreign markets of home industries. 
C)  When one country institutes tariffs, it is likely that other countries will follow. 
D)  A tariff that keeps out foreign goods increases the market for U.S. goods. 
A)  Restricting international trade robs us of part of its benefits. 
B)  Free admission of imports is one of the most effective ways of expanding the foreign markets of home industries. 
C)  When one country institutes tariffs, it is likely that other countries will follow. 
D)  A tariff that keeps out foreign goods increases the market for U.S. goods.

Question 20

What are the advantages and disadvantages of international trade? Why and how are the advantages linked to the disadvantages?

Accepted Answer

Trade is the lifeblood of a modern econo

Exam 20: International Economic Relations

Interest Americans receive from foreign investments are unimportant in the U.S. economy.

In the 1930s, the United States followed an isolationist policy toward trade.

The relation of our total exports to our total imports is called the balance of:

If countries decide to stop accepting U.S. dollars and promissory notes and instead want goods and services, the value of the dollar will likely:

Invisible items of trade consist of services of all sorts for which people of one country pay those of another.

U.S. producers as a group are injured by foreign purchases.

The IMF has helped stabilize foreign exchange rates.

Since the 1930s, the importance of international trade for the United States has:

The United States is the largest debtor nation in the world.

Most economists oppose the levying of:

International trade now accounts for well over 50 percent of our total GDP.

In the 1960s, 1970s, and 1980s, international trade expanded in the developing countries, mainly in the area of:

The 1970s marked a new dimension in the expansion of international trade.

Trade is best seen as taking place between two countries without the other countries in the picture.

In most cases, nations would derive the greatest economic advantage from international trade if they:

In the mid-1990s, GATT was replaced by the:

The home-market argument in favor of protective tariffs results in:

International trade has only advantages.

Which of the following is not an argument against protective tariffs?

What are the advantages and disadvantages of international trade? Why and how are the advantages linked to the disadvantages?

Social Science and Its Methods

Human Origins

Origins of Western Society

Society, Culture, and Cultural Change

Geography, Demography, Ecology, and Society

Technology and Society

Psychology, Society, and Culture

Deviance, Crime, and Society

The Family

Religion

Education

Social and Economic Stratification

Stratification, Minorities, and Discrimination

The Functions and Forms of Government

Governments of the World

Democratic Government in the United States

The Organization of Economic Activities

The Economy, Government, and Economic Challenges Facing the United States

International Political Relations

The Political Economies of Developing Countries

International Institutions and the Search for Peace

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