Question 1

What is outsourcing?

Accepted Answer

A) The process of vertically integrating the factors of production. 
B) The process of selling products overseas bypassing import tariffs. 
C) The movement of production to affiliate firms outside of the country. 
D) None of the above. 
A) The process of vertically integrating the factors of production. 
B) The process of selling products overseas bypassing import tariffs. 
C) The movement of production to affiliate firms outside of the country. 
D) None of the above.

Question 2

An example of direct foreign investment is given by

Accepted Answer

A) the sale of U.S. government bonds to foreigners. 
B) the sale of General Motors bonds to foreigners. 
C) the behavior of multinational corporations such as Ford. 
D) all of the above. 
A) the sale of U.S. government bonds to foreigners. 
B) the sale of General Motors bonds to foreigners. 
C) the behavior of multinational corporations such as Ford. 
D) all of the above.

Question 3

The ratio of the percentage change in consumption of a good divided by the percentage change in income (as measured by GDP)is known as the

Accepted Answer

A) income elasticity of demand. 
B) income expansion path. 
C) demand elasticity equivalent. 
D) trade effectiveness. 
A) income elasticity of demand. 
B) income expansion path. 
C) demand elasticity equivalent. 
D) trade effectiveness.

Question 4

Only a few countries have followed outward-oriented development strategies for extensive periods of time.Which of the following countries is not one of those that have followed such a strategy successfully in the last decades.

Accepted Answer

A) Russia 
B) Japan 
C) South Korea 
D) Singapore 
A) Russia 
B) Japan 
C) South Korea 
D) Singapore

Question 5

If an economy experiences an increase in its labor force,everything else constant,then its production possibilities frontier (PPF)will

Accepted Answer

A) expand outward but keep its original shape. 
B) expand outward largely in the direction of the labor intensive good. 
C) expand outward largely in the direction of the capital intensive good. 
D) not expand until capital grows. 
A) expand outward but keep its original shape. 
B) expand outward largely in the direction of the labor intensive good. 
C) expand outward largely in the direction of the capital intensive good. 
D) not expand until capital grows.

Question 6

Legal immigration to the United States peaked just before World War I,but today is almost zero.

Accepted Answer

A) True 
 B)False

Question 7

________ would gain from expanded immigration.

Accepted Answer

A) Domestic labor 
B) Domestic capital 
C) Both domestic labor and capital 
D) Neither domestic labor nor capital 
A) Domestic labor 
B) Domestic capital 
C) Both domestic labor and capital 
D) Neither domestic labor nor capital

Question 8

Rich country to poor country migration is relatively uncommon.

Accepted Answer

A) True 
 B)False

Question 9

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

Accepted Answer

A) True 
 B)False

Question 10

________ policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Accepted Answer

A) Comprehensive development 
B) Primary-export-led development 
C) Import-substitution development 
D) Outward-looking development 
A) Comprehensive development 
B) Primary-export-led development 
C) Import-substitution development 
D) Outward-looking development

Question 11

Recently,many developing countries throughout the world have begun to institute policies that seek to

Accepted Answer

A) liberalize international trade by lowering trade barriers. 
B) reduce dependence on international trade by raising trade barriers. 
C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods. 
D) Two of the above. 
A) liberalize international trade by lowering trade barriers. 
B) reduce dependence on international trade by raising trade barriers. 
C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods. 
D) Two of the above.

Question 12

What does the "brain drain" refer to and why is it a problem for developing countries?

Accepted Answer

The brain drain refers to the migration

Question 13

If the expansion of a country's exports leads to growth in non-export industries this is called a(n)

Accepted Answer

A) secondary effect. 
B) linkage effect. 
C) elementary effect. 
D) None of the above. 
A) secondary effect. 
B) linkage effect. 
C) elementary effect. 
D) None of the above.

Question 14

A government program that attempts to stimulate domestic production of a good in which the country has a natural comparative advantage because of its domestic resources is an example of a(n)________ policy.

Accepted Answer

A) primary-export-led 
B)  import-substitution development 
C)  outward-looking development 
D)  linkage-effect 
A) primary-export-led 
B)  import-substitution development 
C)  outward-looking development 
D)  linkage-effect

Question 15

Sale of U.S.government bonds to foreigners is an example of direct foreign investment in the United States.

Accepted Answer

A) True 
 B)False

Question 16

Economic growth occurs because

Accepted Answer

A) labor forces grow. 
B) capital stocks grow. 
C) new inventions raise productivity. 
D) All of the above. 
A) labor forces grow. 
B) capital stocks grow. 
C) new inventions raise productivity. 
D) All of the above.

Question 17

The movement of production to affiliate firms outside of the country is known as outsourcing.

Accepted Answer

A) True 
 B)False

Question 18

Economic growth could make a country worse off.

Accepted Answer

A) True 
 B)False

Question 19

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Accepted Answer

A) True 
 B)False

Question 20

Over time,countries grow in a fashion so that their production possibility frontiers always retain the same shape.

Accepted Answer

A) True 
 B)False

What is outsourcing?

An example of direct foreign investment is given by

The ratio of the percentage change in consumption of a good divided by the percentage change in income (as measured by GDP)is known as the

Only a few countries have followed outward-oriented development strategies for extensive periods of time.Which of the following countries is not one of those that have followed such a strategy successfully in the last decades.

If an economy experiences an increase in its labor force,everything else constant,then its production possibilities frontier (PPF)will

Legal immigration to the United States peaked just before World War I,but today is almost zero.

________ would gain from expanded immigration.

Rich country to poor country migration is relatively uncommon.

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

________ policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Recently,many developing countries throughout the world have begun to institute policies that seek to

What does the "brain drain" refer to and why is it a problem for developing countries?

If the expansion of a country's exports leads to growth in non-export industries this is called a(n)

A government program that attempts to stimulate domestic production of a good in which the country has a natural comparative advantage because of its domestic resources is an example of a(n)________ policy.

Sale of U.S.government bonds to foreigners is an example of direct foreign investment in the United States.

Economic growth occurs because

The movement of production to affiliate firms outside of the country is known as outsourcing.

Economic growth could make a country worse off.

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Over time,countries grow in a fashion so that their production possibility frontiers always retain the same shape.

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 10: International Trade and Economic Growth

What is outsourcing?

An example of direct foreign investment is given by

The ratio of the percentage change in consumption of a good divided by the percentage change in income (as measured by GDP)is known as the

Only a few countries have followed outward-oriented development strategies for extensive periods of time.Which of the following countries is not one of those that have followed such a strategy successfully in the last decades.

If an economy experiences an increase in its labor force,everything else constant,then its production possibilities frontier (PPF)will

Legal immigration to the United States peaked just before World War I,but today is almost zero.

________ would gain from expanded immigration.

Rich country to poor country migration is relatively uncommon.

A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices.

________ policies involve government support for manufacturing sectors in which a country has potential comparative advantage.

Recently,many developing countries throughout the world have begun to institute policies that seek to

What does the "brain drain" refer to and why is it a problem for developing countries?

If the expansion of a country's exports leads to growth in non-export industries this is called a(n)

A government program that attempts to stimulate domestic production of a good in which the country has a natural comparative advantage because of its domestic resources is an example of a(n)________ policy.

Sale of U.S.government bonds to foreigners is an example of direct foreign investment in the United States.

Economic growth occurs because

The movement of production to affiliate firms outside of the country is known as outsourcing.

Economic growth could make a country worse off.

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s.

Over time,countries grow in a fashion so that their production possibility frontiers always retain the same shape.

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters