Question 1

Today the largest net exporter of capital in terms of the total world percentage is

Accepted Answer

A)  Japan 
B)  The United States 
C)  Germany 
D)  China 
A)  Japan 
B)  The United States 
C)  Germany 
D)  China C

Question 2

What does the gravity model suggest?

Accepted Answer

That bilateral trade is positively related to the product of two countries GDP's and is smaller the greater distance between the two nations.

Question 3

International economics deals with:

Accepted Answer

A)  the flow of goods, services, and payments among nations 
B)  policies directed at regulating the flow of goods, services, and payments 
C)  the effects of policies on the welfare of the nation 
D)  all of the above 
A)  the flow of goods, services, and payments among nations 
B)  policies directed at regulating the flow of goods, services, and payments 
C)  the effects of policies on the welfare of the nation 
D)  all of the above D

Question 4

Today,how many people live on less that $1.25 a day across the globe.

Accepted Answer

A)  Roughly 1 billion 
B)  Roughly 1 million 
C)  Roughly 1 trillion 
D)  Roughly 100 million 
A)  Roughly 1 billion 
B)  Roughly 1 million 
C)  Roughly 1 trillion 
D)  Roughly 100 million

Question 5

What does the term "globalized world" mean?

Accepted Answer

It means we can connect instantly with a

Question 6

Identify some of the topics that international economics studies

Accepted Answer

The basis and gains from trade

Question 7

The gravity model of international trade predicts that trade between two nations is larger

Accepted Answer

A)  the larger the two nations 
B)  the closer the nations 
C)  the more open are the two nations 
D)  all of the above 
A)  the larger the two nations 
B)  the closer the nations 
C)  the more open are the two nations 
D)  all of the above

Question 8

The 2008 and 2009 financial and economic crisis began in

Accepted Answer

A)  U.S. subprime housing mortgage markets 
B)  Chinese export markets 
C)  The Japanese stock market 
D)  Russian foreign exchange markets 
A)  U.S. subprime housing mortgage markets 
B)  Chinese export markets 
C)  The Japanese stock market 
D)  Russian foreign exchange markets

Question 9

Over time,the economic interdependence of nations has:

Accepted Answer

A)  grown 
B)  diminished 
C)  remained unchanged 
D)  cannot say 
A)  grown 
B)  diminished 
C)  remained unchanged 
D)  cannot say

Question 10

The opening or expansion of international trade usually affects all members of society:

Accepted Answer

A)  positively 
B)  negatively 
C)  most positively but some negatively 
D)  most negatively but some positively 
A)  positively 
B)  negatively 
C)  most positively but some negatively 
D)  most negatively but some positively

Question 11

International trade is similar to interregional trade in that both must overcome:

Accepted Answer

A)  distance and space 
B)  trade restrictions 
C)  differences in currencies 
D)  differences in monetary systems 
A)  distance and space 
B)  trade restrictions 
C)  differences in currencies 
D)  differences in monetary systems

Question 12

An increase in the dollar price of a foreign currency usually:

Accepted Answer

A)  benefit U.S. importers 
B)  benefits U.S. exporters 
C)  benefit both U.S. importers and U.S. exporters 
D)  harms both U.S. importers and U.S. exporters 
A)  benefit U.S. importers 
B)  benefits U.S. exporters 
C)  benefit both U.S. importers and U.S. exporters 
D)  harms both U.S. importers and U.S. exporters

Question 13

International trade theory refers to:

Accepted Answer

A)  the microeconomic aspects of international trade 
B)  the macroeconomic aspects of international trade 
C)  open economy macroeconomics or international finance 
D)  all of the above 
A)  the microeconomic aspects of international trade 
B)  the macroeconomic aspects of international trade 
C)  open economy macroeconomics or international finance 
D)  all of the above

Question 14

A rough measure of the degree of economic interdependence of a nation is given by:

Accepted Answer

A)  the size of the nations' population 
B)  the percentage of its population to its GDP 
C)  the percentage of a nation's imports and exports to its GDP 
D)  all of the above 
A)  the size of the nations' population 
B)  the percentage of its population to its GDP 
C)  the percentage of a nation's imports and exports to its GDP 
D)  all of the above

Question 15

Which of the following is not an assumption generally made in the study of international economics?

Accepted Answer

A)  two nations 
B)  two commodities 
C)  perfect international mobility of factors 
D)  two factors of production 
A)  two nations 
B)  two commodities 
C)  perfect international mobility of factors 
D)  two factors of production

Question 16

Economic interdependence is greater for:

Accepted Answer

A)  small nations 
B)  large nations 
C)  developed nations 
D)  developing nations 
A)  small nations 
B)  large nations 
C)  developed nations 
D)  developing nations

Question 17

Which of the following products are not produced at all in the United States?

Accepted Answer

A)  Coffee, tea, cocoa 
B)  steel, copper, aluminum 
C)  petroleum, coal, natural gas 
D)  typewriters, computers, airplanes 
A)  Coffee, tea, cocoa 
B)  steel, copper, aluminum 
C)  petroleum, coal, natural gas 
D)  typewriters, computers, airplanes

Question 18

International trade is most important to the standard of living of:

Accepted Answer

A)  the United States 
B)  Switzerland 
C)  Germany 
D)  England 
A)  the United States 
B)  Switzerland 
C)  Germany 
D)  England

Question 19

Identify some of the criticisms of the anti-globalization movement.

Accepted Answer

Increased world inco

Question 20

Economic theory:

Accepted Answer

A)  seeks to explain economic events 
B)  seeks to predict economic events 
C)  abstracts from the many detail that surrounds an economic event 
D)  all of the above 
A)  seeks to explain economic events 
B)  seeks to predict economic events 
C)  abstracts from the many detail that surrounds an economic event 
D)  all of the above

Exam 1: Introduction

Today the largest net exporter of capital in terms of the total world percentage is

What does the gravity model suggest?

International economics deals with:

Today,how many people live on less that $1.25 a day across the globe.

What does the term "globalized world" mean?

Identify some of the topics that international economics studies

The gravity model of international trade predicts that trade between two nations is larger

The 2008 and 2009 financial and economic crisis began in

Over time,the economic interdependence of nations has:

The opening or expansion of international trade usually affects all members of society:

International trade is similar to interregional trade in that both must overcome:

An increase in the dollar price of a foreign currency usually:

International trade theory refers to:

A rough measure of the degree of economic interdependence of a nation is given by:

Which of the following is not an assumption generally made in the study of international economics?

Economic interdependence is greater for:

Which of the following products are not produced at all in the United States?

International trade is most important to the standard of living of:

Identify some of the criticisms of the anti-globalization movement.

Economic theory:

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

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