Question 1

A trade bloc is:

Accepted Answer

A)  a tariff or quota that impedes imports. 
B)  a group of nations that allows free trade among member nations but restricts imports from nonmember nations via tariffs and quotas. 
C)  an area of a nation where manufacturers can import product components without paying tariffs. 
D)  a group of nations that advertise their common export goods abroad. 
A)  a tariff or quota that impedes imports. 
B)  a group of nations that allows free trade among member nations but restricts imports from nonmember nations via tariffs and quotas. 
C)  an area of a nation where manufacturers can import product components without paying tariffs. 
D)  a group of nations that advertise their common export goods abroad.

Question 2

Export subsidies are:

Accepted Answer

A)  maximum limits on the quantity or total value of specific products imported to a nation. 
B)  excise taxes or duties placed on imported products. 
C)  licensing requirements,unreasonable quality standards,and the like designed to impede imports. 
D)  government payments to domestic producers to enable them to charge lower prices and sell more goods in world markets. 
A)  maximum limits on the quantity or total value of specific products imported to a nation. 
B)  excise taxes or duties placed on imported products. 
C)  licensing requirements,unreasonable quality standards,and the like designed to impede imports. 
D)  government payments to domestic producers to enable them to charge lower prices and sell more goods in world markets.

Question 3

Foreign currency exchanges and interest payments on foreign debt are examples of:

Accepted Answer

A)  financial flows. 
B)  trade flows. 
C)  capital flows. 
D)  technology flows. 
A)  financial flows. 
B)  trade flows. 
C)  capital flows. 
D)  technology flows.

Question 4

A number of European nations have agreed to use the ___________ as a common currency.

Accepted Answer

A)  mark 
B)  pound 
C)  euro 
D)  continental 
A)  mark 
B)  pound 
C)  euro 
D)  continental

Question 5

Mexican imports of U.S.goods:

Accepted Answer

A)  create a supply of pesos. 
B)  create a supply of dollars. 
C)  reduce the demand for dollars. 
D)  have no effect on the peso-dollar exchange rate. 
A)  create a supply of pesos. 
B)  create a supply of dollars. 
C)  reduce the demand for dollars. 
D)  have no effect on the peso-dollar exchange rate.

Question 6

The emigration of software designers from India to the United States best illustrates a(n):

Accepted Answer

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

Question 7

The latest,ongoing international round of trade negotiations is called the:

Accepted Answer

A)  Bangkok Round. 
B)  Doha Round. 
C)  Seattle Round. 
D)  Stockholm Round. 
A)  Bangkok Round. 
B)  Doha Round. 
C)  Seattle Round. 
D)  Stockholm Round.

Question 8

The North American Free Trade Agreement (NAFTA):

Accepted Answer

A)  resulted from GATT negotiations at the Uruguay Round. 
B)  established a free trade zone encompassing Canada,Mexico,and the United States. 
C)  is also known as the Reciprocal Trade Act. 
D)  permits the former republics of the Soviet Union to export goods duty free to North America. 
A)  resulted from GATT negotiations at the Uruguay Round. 
B)  established a free trade zone encompassing Canada,Mexico,and the United States. 
C)  is also known as the Reciprocal Trade Act. 
D)  permits the former republics of the Soviet Union to export goods duty free to North America.

Question 9

The United States' most important trading partner in terms of dollar volume is:

Accepted Answer

A)  Mexico. 
B)  Canada. 
C)  Germany. 
D)  China. 
A)  Mexico. 
B)  Canada. 
C)  Germany. 
D)  China.

Question 10

(Consider This)According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

Accepted Answer

A)  we should buy everything from abroad. 
B)  people should only consume what they can produce themselves. 
C)  consumers should only buy goods from other states. 
D)  the best-quality goods are found in the United States. 
A)  we should buy everything from abroad. 
B)  people should only consume what they can produce themselves. 
C)  consumers should only buy goods from other states. 
D)  the best-quality goods are found in the United States.

Question 11

A change in the dollar price of yen from $1 = 100 yen to $1 = 50 yen will:

Accepted Answer

A)  make U.S.goods more expensive to the Japanese. 
B)  make Japanese goods less expensive to Americans. 
C)  increase U.S.exports and depress Japanese exports. 
D)  increase Japanese exports and depress U.S.exports. 
A)  make U.S.goods more expensive to the Japanese. 
B)  make Japanese goods less expensive to Americans. 
C)  increase U.S.exports and depress Japanese exports. 
D)  increase Japanese exports and depress U.S.exports.

Question 12

Which of the following nations is not a member of the eurozone?

Accepted Answer

A)  Italy. 
B)  Spain. 
C)  Germany. 
D)  The United Kingdom. 
A)  Italy. 
B)  Spain. 
C)  Germany. 
D)  The United Kingdom.

Question 13

The United States exports a higher U.S.dollar volume of goods to Canada than to any other nation.

Accepted Answer

A) True 
 B)False

Question 14

The World Trade Organization (WTO):

Accepted Answer

A)  sets tariffs to balance international trade among nations. 
B)  is the successor to NAFTA. 
C)  hears and rules on trade disputes between nations. 
D)  sets exchange rates to balance international trade among nations. 
A)  sets tariffs to balance international trade among nations. 
B)  is the successor to NAFTA. 
C)  hears and rules on trade disputes between nations. 
D)  sets exchange rates to balance international trade among nations.

Question 15

The purchase by an American firm of the right to produce a prescription drug patented in Germany best illustrates a:

Accepted Answer

A)  trade flow. 
B)  capital flow. 
C)  goods and services flow. 
D)  technology flow. 
A)  trade flow. 
B)  capital flow. 
C)  goods and services flow. 
D)  technology flow.

Question 16

The terms of trade:

Accepted Answer

A)  show the ratio at which nations will exchange two goods. 
B)  show how the gains from trade can be equally shared. 
C)  show the value of one nation's currency in terms of another nation's currency. 
D)  compare the volume of a nation's exports and imports. 
A)  show the ratio at which nations will exchange two goods. 
B)  show how the gains from trade can be equally shared. 
C)  show the value of one nation's currency in terms of another nation's currency. 
D)  compare the volume of a nation's exports and imports.

Question 17

The average U.S.tariff rate on imported goods is about:

Accepted Answer

A)  5 percent. 
B)  12 percent. 
C)  37 percent. 
D)  50 percent. 
A)  5 percent. 
B)  12 percent. 
C)  37 percent. 
D)  50 percent.

Question 18

The physical import of DVD players to the United States from Japan best illustrates a:

Accepted Answer

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

Question 19

According to the concept of comparative advantage,a good should be produced in that nation where:

Accepted Answer

A)  its domestic opportunity cost is greatest. 
B)  money is used as a medium of exchange. 
C)  its domestic opportunity cost is least. 
D)  the terms of trade are maximized. 
A)  its domestic opportunity cost is greatest. 
B)  money is used as a medium of exchange. 
C)  its domestic opportunity cost is least. 
D)  the terms of trade are maximized.

Question 20

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 given tables.The domestic opportunity cost of one unit of X in Alpha is:

Accepted Answer

A)  2 units of Y. 
B)  4 units of Y. 
C)  1 unit of Y. 
D)  3 units of Y. 
A)  2 units of Y. 
B)  4 units of Y. 
C)  1 unit of Y. 
D)  3 units of Y.

A trade bloc is:

Export subsidies are:

Foreign currency exchanges and interest payments on foreign debt are examples of:

A number of European nations have agreed to use the ___________ as a common currency.

Mexican imports of U.S.goods:

The emigration of software designers from India to the United States best illustrates a(n):

The latest,ongoing international round of trade negotiations is called the:

The North American Free Trade Agreement (NAFTA):

The United States' most important trading partner in terms of dollar volume is:

(Consider This)According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

A change in the dollar price of yen from $1 = 100 yen to $1 = 50 yen will:

Which of the following nations is not a member of the eurozone?

The United States exports a higher U.S.dollar volume of goods to Canada than to any other nation.

The World Trade Organization (WTO):

The purchase by an American firm of the right to produce a prescription drug patented in Germany best illustrates a:

The terms of trade:

The average U.S.tariff rate on imported goods is about:

The physical import of DVD players to the United States from Japan best illustrates a:

According to the concept of comparative advantage,a good should be produced in that nation where:

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

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Exam 42: The United States and the Global Economy

A trade bloc is:

Export subsidies are:

Foreign currency exchanges and interest payments on foreign debt are examples of:

A number of European nations have agreed to use the ___________ as a common currency.

Mexican imports of U.S.goods:

The emigration of software designers from India to the United States best illustrates a(n):

The latest,ongoing international round of trade negotiations is called the:

The North American Free Trade Agreement (NAFTA):

The United States' most important trading partner in terms of dollar volume is:

(Consider This)According to Dallas Federal Reserve economist W.Michael Cox,taken to its extreme,the logic of "buying American" implies that:

A change in the dollar price of yen from $1 = 100 yen to $1 = 50 yen will:

Which of the following nations is not a member of the eurozone?

The United States exports a higher U.S.dollar volume of goods to Canada than to any other nation.

The World Trade Organization (WTO):

The purchase by an American firm of the right to produce a prescription drug patented in Germany best illustrates a:

The terms of trade:

The average U.S.tariff rate on imported goods is about:

The physical import of DVD players to the United States from Japan best illustrates a:

According to the concept of comparative advantage,a good should be produced in that nation where:

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