Question 1

The European Union (EU)is a free trade zone comprising all the nations of eastern and western Europe.

Accepted Answer

A) True 
 B)False  False

Question 2

If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound,then:

Accepted Answer

A)  the dollar has appreciated in value. 
B)  Americans will import more British goods. 
C)  the British will buy fewer U.S.goods. 
D)  the dollar has depreciated in value. 
A)  the dollar has appreciated in value. 
B)  Americans will import more British goods. 
C)  the British will buy fewer U.S.goods. 
D)  the dollar has depreciated in value. D

Question 3

The spending by Americans while traveling in Europe best illustrates a:

Accepted Answer

A)  trade flow. 
B)  labor flow. 
C)  financial flow. 
D)  technology flow. 
A)  trade flow. 
B)  labor flow. 
C)  financial flow. 
D)  technology flow. C

Question 4

Critics of the North American Free Trade Agreement (NAFTA)feared that it would:

Accepted Answer

A)  increase the flow of illegal Mexican immigrants to the United States. 
B)  cause the European Union and Japan to raise trade barriers against U.S.goods. 
C)  cause a massive loss of U.S.jobs to Mexico. 
D)  increase foreign ownership of assets in the United States. 
A)  increase the flow of illegal Mexican immigrants to the United States. 
B)  cause the European Union and Japan to raise trade barriers against U.S.goods. 
C)  cause a massive loss of U.S.jobs to Mexico. 
D)  increase foreign ownership of assets in the United States.

Question 5

All else equal,U.S.exports to Germany create a:

Accepted Answer

A)  demand for European euros. 
B)  supply of European euros. 
C)  supply of American dollars. 
D)  shortage of European euros. 
A)  demand for European euros. 
B)  supply of European euros. 
C)  supply of American dollars. 
D)  shortage of European euros.

Question 6

Import quotas are taxes or duties on imported products.

Accepted Answer

A) True 
 B)False

Question 7

Immigration of workers is an example of a goods and services flow.

Accepted Answer

A) True 
 B)False

Question 8

The European Union (EU)comprises a group of European nations that have:

Accepted Answer

A)  abolished tariffs among one another and established a system of common tariffs with respect to nonmember nations. 
B)  fully integrated their economies by establishing a central bank,a common currency,and a coordinated set of governmental budgetary policies. 
C)  agreed to trade only among one another. 
D)  eliminated all tariffs and trade barriers with nonmember nations. 
A)  abolished tariffs among one another and established a system of common tariffs with respect to nonmember nations. 
B)  fully integrated their economies by establishing a central bank,a common currency,and a coordinated set of governmental budgetary policies. 
C)  agreed to trade only among one another. 
D)  eliminated all tariffs and trade barriers with nonmember nations.

Question 9

All else equal,U.S.imports from Germany create a:

Accepted Answer

A)  demand for European euros. 
B)  supply of European euros. 
C)  demand for American dollars. 
D)  surplus of European euros. 
A)  demand for European euros. 
B)  supply of European euros. 
C)  demand for American dollars. 
D)  surplus of European euros.

Question 10

Proponents of the WTO argue that free international trade and investment will:

Accepted Answer

A)  reduce economic growth rates in the industrial economies. 
B)  reduce employment in developing nations. 
C)  eliminate world poverty. 
D)  increase living standards of all trading nations. 
A)  reduce economic growth rates in the industrial economies. 
B)  reduce employment in developing nations. 
C)  eliminate world poverty. 
D)  increase living standards of all trading nations.

Question 11

The physical export of motorcycles from the United States to Mexico best illustrates a:

Accepted Answer

A)  trade flow. 
B)  resource flow. 
C)  financial flow. 
D)  technology flow. 
A)  trade flow. 
B)  resource flow. 
C)  financial flow. 
D)  technology flow.

Question 12

In recent years,the United States has:

Accepted Answer

A)  exported more goods and services than it has imported. 
B)  imported more goods and services than it has exported. 
C)  realized an approximate balance in its imports and exports. 
D)  experienced a falling absolute dollar amount of imports and a rising absolute dollar amount of exports. 
A)  exported more goods and services than it has imported. 
B)  imported more goods and services than it has exported. 
C)  realized an approximate balance in its imports and exports. 
D)  experienced a falling absolute dollar amount of imports and a rising absolute dollar amount of exports.

Question 13

Trade flows measure the:

Accepted Answer

A)  movement of resources between nations. 
B)  exports and imports of goods and services. 
C)  transfer of information from one nation to another. 
D)  transfer of money between nations. 
A)  movement of resources between nations. 
B)  exports and imports of goods and services. 
C)  transfer of information from one nation to another. 
D)  transfer of money between nations.

Question 14

Since the signing of the North American Free Trade Agreement (NAFTA)in 1993:

Accepted Answer

A)  total employment in the United States has slightly declined. 
B)  total employment in the United States has greatly increased. 
C)  Mexican exports to the United States have declined. 
D)  productivity growth in Canada,Mexico,and the United States has stagnated. 
A)  total employment in the United States has slightly declined. 
B)  total employment in the United States has greatly increased. 
C)  Mexican exports to the United States have declined. 
D)  productivity growth in Canada,Mexico,and the United States has stagnated.

Question 15

The primary economic advantage of the European Union (EU)to its members is that:

Accepted Answer

A)  the tax structures of each participating nation have been made nearly identical. 
B)  each nation is free to formulate its own antitrust and agricultural policies. 
C)  participating nations must all use a common currency. 
D)  the reduction of trade barriers permits producers to achieve mass-production economies. 
A)  the tax structures of each participating nation have been made nearly identical. 
B)  each nation is free to formulate its own antitrust and agricultural policies. 
C)  participating nations must all use a common currency. 
D)  the reduction of trade barriers permits producers to achieve mass-production economies.

Question 16

Approximately half of the U.S.international trade is with:

Accepted Answer

A)  the nations of Eastern Europe. 
B)  the developing countries of Africa,Asia,and Latin America. 
C)  other industrialized nations,for example,Canada,Japan,and the countries of the European Union. 
D)  China. 
A)  the nations of Eastern Europe. 
B)  the developing countries of Africa,Asia,and Latin America. 
C)  other industrialized nations,for example,Canada,Japan,and the countries of the European Union. 
D)  China.

Question 17

Offshoring often results from:

Accepted Answer

A)  diminished human capital of American workers. 
B)  overly restrictive trade policies. 
C)  a change in comparative advantage. 
D)  a desire to help out workers in low-income economies. 
A)  diminished human capital of American workers. 
B)  overly restrictive trade policies. 
C)  a change in comparative advantage. 
D)  a desire to help out workers in low-income economies.

Question 18

Exchange rates are particularly important because:

Accepted Answer

A)  they present a challenge to financial speculators. 
B)  they link the price levels of various nations to one another. 
C)  they represent exceptions to the laws of demand and supply. 
D)  equilibrium is never achieved in such markets. 
A)  they present a challenge to financial speculators. 
B)  they link the price levels of various nations to one another. 
C)  they represent exceptions to the laws of demand and supply. 
D)  equilibrium is never achieved in such markets.

Question 19

Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta: Alpha Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } }  & \underline { \mathrm { C } } & \underline{ \mathrm { D } } \ 
\text { Product } X & 3 & 2 & 1 & 0 \ \text { Product } Y & 0 & 4 & 8 & 12 \end{array}$

Beta Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } }  & \underline { \mathrm { B } } & \underline { \mathrm { C } }  & \underline { \mathrm { D } } \
\text { Product } X  &6&4&2&0\
\text { Product } Y & 0 & 4 & 8 & 12 \end{array}$ Refer to the tables.According to the concept of comparative advantage:

Accepted Answer

A)  Alpha should specialize in X;Beta,in Y. 
B)  Beta should produce some X and some Y. 
C)  Alpha should produce some X and some Y. 
D)  Beta should specialize in X;Alpha,in Y. 
A)  Alpha should specialize in X;Beta,in Y. 
B)  Beta should produce some X and some Y. 
C)  Alpha should produce some X and some Y. 
D)  Beta should specialize in X;Alpha,in Y.

Question 20

Which of the following statements is correct?

Accepted Answer

A)  U.S.exports and imports have been decreasing as a percentage of U.S.GDP,but the U.S.share of total world trade has been increasing. 
B)  U.S.exports and imports have been decreasing as a percentage of U.S.GDP and the U.S.share of total world trade has been declining. 
C)  U.S.exports and imports have been expanding as a percentage of U.S.GDP and the U.S.share of total world trade has been increasing. 
D)  U.S.exports and imports have been expanding as a percentage of U.S.GDP,but the U.S.share of total world trade has been declining. 
A)  U.S.exports and imports have been decreasing as a percentage of U.S.GDP,but the U.S.share of total world trade has been increasing. 
B)  U.S.exports and imports have been decreasing as a percentage of U.S.GDP and the U.S.share of total world trade has been declining. 
C)  U.S.exports and imports have been expanding as a percentage of U.S.GDP and the U.S.share of total world trade has been increasing. 
D)  U.S.exports and imports have been expanding as a percentage of U.S.GDP,but the U.S.share of total world trade has been declining.

The European Union (EU)is a free trade zone comprising all the nations of eastern and western Europe.

If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound,then:

The spending by Americans while traveling in Europe best illustrates a:

Critics of the North American Free Trade Agreement (NAFTA)feared that it would:

All else equal,U.S.exports to Germany create a:

Import quotas are taxes or duties on imported products.

Immigration of workers is an example of a goods and services flow.

The European Union (EU)comprises a group of European nations that have:

All else equal,U.S.imports from Germany create a:

Proponents of the WTO argue that free international trade and investment will:

The physical export of motorcycles from the United States to Mexico best illustrates a:

In recent years,the United States has:

Trade flows measure the:

Since the signing of the North American Free Trade Agreement (NAFTA)in 1993:

The primary economic advantage of the European Union (EU)to its members is that:

Approximately half of the U.S.international trade is with:

Offshoring often results from:

Exchange rates are particularly important because:

Which of the following statements is correct?

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 42: The United States and the Global Economy

The European Union (EU)is a free trade zone comprising all the nations of eastern and western Europe.

If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound,then:

The spending by Americans while traveling in Europe best illustrates a:

Critics of the North American Free Trade Agreement (NAFTA)feared that it would:

All else equal,U.S.exports to Germany create a:

Import quotas are taxes or duties on imported products.

Immigration of workers is an example of a goods and services flow.

The European Union (EU)comprises a group of European nations that have:

All else equal,U.S.imports from Germany create a:

Proponents of the WTO argue that free international trade and investment will:

The physical export of motorcycles from the United States to Mexico best illustrates a:

In recent years,the United States has:

Trade flows measure the:

Since the signing of the North American Free Trade Agreement (NAFTA)in 1993:

The primary economic advantage of the European Union (EU)to its members is that:

Approximately half of the U.S.international trade is with:

Offshoring often results from:

Exchange rates are particularly important because:

Which of the following statements is correct?

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters