Question 1

The primary benefits of international trade include:

Accepted Answer

A)  the more efficient use of world resources and higher living standards. 
B)  greater stability of domestic output,employment,and the price level. 
C)  diminished dependence on foreign supplies of goods and materials. 
D)  greater economic security for our domestic producers. 
A)  the more efficient use of world resources and higher living standards. 
B)  greater stability of domestic output,employment,and the price level. 
C)  diminished dependence on foreign supplies of goods and materials. 
D)  greater economic security for our domestic producers.

Question 2

As a percentage of GDP (total output),U.S.exports are:

Accepted Answer

A)  about 20 percent. 
B)  lower than in some other industrial countries,including Germany and Canada. 
C)  less today than they were in the 1970s. 
D)  the highest in the world. 
A)  about 20 percent. 
B)  lower than in some other industrial countries,including Germany and Canada. 
C)  less today than they were in the 1970s. 
D)  the highest in the world.

Question 3

If the exchange rate changes from $1 = 2 euros to $1 = 3 euros:

Accepted Answer

A)  the dollar has appreciated in value. 
B)  the dollar has depreciated in value. 
C)  the dollar has neither appreciated nor depreciated,but the euro has appreciated in value. 
D)  U.S.exports to Europe will increase. 
A)  the dollar has appreciated in value. 
B)  the dollar has depreciated in value. 
C)  the dollar has neither appreciated nor depreciated,but the euro has appreciated in value. 
D)  U.S.exports to Europe will increase.

Question 4

Critics of trade adjustment assistance argue that:

Accepted Answer

A)  the small fraction of workers losing jobs to international trade are no more deserving of assistance than others suffering job loss. 
B)  it raises prices for consumers. 
C)  it keeps firms operating in industries where they are no longer competitive. 
D)  it reduces the incentive for firms to invest in new technologies to maintain competitiveness. 
A)  the small fraction of workers losing jobs to international trade are no more deserving of assistance than others suffering job loss. 
B)  it raises prices for consumers. 
C)  it keeps firms operating in industries where they are no longer competitive. 
D)  it reduces the incentive for firms to invest in new technologies to maintain competitiveness.

Question 5

Which of the following sets of countries were among those admitted to the European Union in 2004?

Accepted Answer

A)  Spain,Portugal,and Turkey. 
B)  Estonia,Bulgaria,and Switzerland. 
C)  Poland,Hungary,and the Czech Republic. 
D)  Belgium,the Netherlands,and Luxembourg. 
A)  Spain,Portugal,and Turkey. 
B)  Estonia,Bulgaria,and Switzerland. 
C)  Poland,Hungary,and the Czech Republic. 
D)  Belgium,the Netherlands,and Luxembourg.

Question 6

The largest goods exports of the United States (in dollar volume,2012)are:

Accepted Answer

A)  energy products,agricultural products,metals,and chemicals. 
B)  petroleum,automobiles,clothing,and household appliances. 
C)  iron and steel,clothing,beef,and sugar. 
D)  aircraft,glassware,television sets,and furniture. 
A)  energy products,agricultural products,metals,and chemicals. 
B)  petroleum,automobiles,clothing,and household appliances. 
C)  iron and steel,clothing,beef,and sugar. 
D)  aircraft,glassware,television sets,and furniture.

Question 7

Terms of trade of 1X = 5Y will be acceptable to two countries that have domestic opportunity costs of 1X = 4Y and 1X = 1Y,respectively.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following nations is not a member of the European Union?

Accepted Answer

A)  Switzerland. 
B)  France. 
C)  Germany. 
D)  Italy. 
A)  Switzerland. 
B)  France. 
C)  Germany. 
D)  Italy.

Question 9

Import quotas 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 reduce the world prices of exported goods. 
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 reduce the world prices of exported goods.

Question 10

Depreciation of the dollar will:

Accepted Answer

A)  increase the prices of U.S.imports but decrease the prices of U.S.exports. 
B)  decrease the prices of U.S.imports but increase the prices of U.S.exports. 
C)  increase the prices of both U.S.imports and exports. 
D)  decrease the prices of both U.S.imports and exports. 
A)  increase the prices of U.S.imports but decrease the prices of U.S.exports. 
B)  decrease the prices of U.S.imports but increase the prices of U.S.exports. 
C)  increase the prices of both U.S.imports and exports. 
D)  decrease the prices of both U.S.imports and exports.

Question 11

Answer the question on the basis of the following table,which indicates the dollar price of luta,the currency used in the hypothetical economy of Luteland: $\begin{array}{c}
\begin{array}{c}
\underline{\text {Quantity of Luta}}\
\underline{\text {Demanded (Billions)}}\
200 \
400 \
600 \
800
\end{array}
\begin{array}{c}
\underline{\text {Dollar Price}}\
\underline{\text {of Luta }}\
 \$ 10 \
8 \
6 \
2
\end{array}
\begin{array}{c}
\underline{\text {Quantity of Luta}}\
\underline{\text {Supplied (Billions)}}\
650 \
400 \
200 \
150
\end{array}
\end{array}$
 Refer to the table.The equilibrium dollar price of luta is:

Accepted Answer

A)  $10. 
B)  $8. 
C)  $6. 
D)  $2. 
A)  $10. 
B)  $8. 
C)  $6. 
D)  $2.

Question 12

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.Which one of the following terms of trade would be acceptable to both countries?

Accepted Answer

A)  1 unit of X for 3 units of Y. 
B)  1 unit of X for 5 units of Y. 
C)  1 unit of X for 12 units of Y. 
D)  1 unit of X for 1 unit of Y. 
A)  1 unit of X for 3 units of Y. 
B)  1 unit of X for 5 units of Y. 
C)  1 unit of X for 12 units of Y. 
D)  1 unit of X for 1 unit of Y.

Question 13

The WTO is comprised of 28 European nations.

Accepted Answer

A) True 
 B)False

Question 14

The United States' exports are approximately what percentage of U.S.GDP?

Accepted Answer

A)  3-4 percent. 
B)  20-25 percent. 
C)  14-17 percent. 
D)  30-34 percent. 
A)  3-4 percent. 
B)  20-25 percent. 
C)  14-17 percent. 
D)  30-34 percent.

Question 15

The largest goods imports of the United States (in dollar volume)are:

Accepted Answer

A)  chemicals,consumer durables,aircraft,and grain. 
B)  petroleum,household appliances,metals,and apparel. 
C)  iron and steel,clothing,electronic equipment,and sugar. 
D)  aircraft,paper products,television sets,and furniture. 
A)  chemicals,consumer durables,aircraft,and grain. 
B)  petroleum,household appliances,metals,and apparel. 
C)  iron and steel,clothing,electronic equipment,and sugar. 
D)  aircraft,paper products,television sets,and furniture.

Question 16

NAFTA refers to the:

Accepted Answer

A)  National Association of Free Trade Agencies. 
B)  National Alliance for Foreign Trade and Assistance. 
C)  North American Free Trade Agreement. 
D)  Northern Alliance for Tariff Adjustment. 
A)  National Association of Free Trade Agencies. 
B)  National Alliance for Foreign Trade and Assistance. 
C)  North American Free Trade Agreement. 
D)  Northern Alliance for Tariff Adjustment.

Question 17

Answer the question on the basis of the following production possibilities data for Landia and Scandia: Landia Production Possibilities:

$\begin{array} { l c c c c c }  & \underline { A } & \underline { B } & \underline { C }  & \underline { D } & \underline { E }  \
\text { Fish }&8&6&4&2&0\
 \text { Chips } & 0 & 10 & 20 & 30 & 40 \end{array}$

Scandia Production Possibilities:

$\begin{array} { c c c c c } &\underline { A } & \underline { B } & \underline { C } & \underline { D } & \underline { E } \
\text { Fish } &16 & 12 & 8 & 4 & 0 \
\text { Chips } &0 & 12 & 24 & 36 & 48 \end{array}$ Refer to the given data.On the basis of the production possibilities data shown:

Accepted Answer

A)  Landia has a comparative advantage in chips while Scandia has a comparative advantage in fish. 
B)  Landia has a comparative advantage in fish while Scandia has a comparative advantage in chips. 
C)  both Landia and Scandia have a comparative advantage in fish. 
D)  both Landia and Scandia have a comparative advantage in chips. 
A)  Landia has a comparative advantage in chips while Scandia has a comparative advantage in fish. 
B)  Landia has a comparative advantage in fish while Scandia has a comparative advantage in chips. 
C)  both Landia and Scandia have a comparative advantage in fish. 
D)  both Landia and Scandia have a comparative advantage in chips.

Question 18

Global competition:

Accepted Answer

A)  forces domestic producers to become more efficient and to improve product quality. 
B)  drives up prices worldwide. 
C)  reduces employment worldwide. 
D)  creates higher flows of international migration than without trade. 
A)  forces domestic producers to become more efficient and to improve product quality. 
B)  drives up prices worldwide. 
C)  reduces employment worldwide. 
D)  creates higher flows of international migration than without trade.

Question 19

An important outcome of the Uruguay Round of GATT negotiations was:

Accepted Answer

A)  a worldwide reduction of agricultural export subsidies. 
B)  establishment of the European Union. 
C)  the elimination of all tariffs and quotas worldwide. 
D)  establishment of the World Bank. 
A)  a worldwide reduction of agricultural export subsidies. 
B)  establishment of the European Union. 
C)  the elimination of all tariffs and quotas worldwide. 
D)  establishment of the World Bank.

Question 20

Which of these groups of nations are all members of the eurozone?

Accepted Answer

A)  The United Kingdom,France,and Switzerland. 
B)  France,Germany,and Italy. 
C)  Denmark,Sweden,and Norway. 
D)  Russia,Poland,and Hungary. 
A)  The United Kingdom,France,and Switzerland. 
B)  France,Germany,and Italy. 
C)  Denmark,Sweden,and Norway. 
D)  Russia,Poland,and Hungary.

The primary benefits of international trade include:

As a percentage of GDP (total output),U.S.exports are:

If the exchange rate changes from $1 = 2 euros to $1 = 3 euros:

Critics of trade adjustment assistance argue that:

Which of the following sets of countries were among those admitted to the European Union in 2004?

The largest goods exports of the United States (in dollar volume,2012)are:

Terms of trade of 1X = 5Y will be acceptable to two countries that have domestic opportunity costs of 1X = 4Y and 1X = 1Y,respectively.

Which of the following nations is not a member of the European Union?

Import quotas are:

Depreciation of the dollar will:

Answer the question on the basis of the following table,which indicates the dollar price of luta,the currency used in the hypothetical economy of Luteland: 200 400 600 800 \ 10 8 6 2 650 400 200 150 Refer to the table.The equilibrium dollar price of luta is:

The WTO is comprised of 28 European nations.

The United States' exports are approximately what percentage of U.S.GDP?

The largest goods imports of the United States (in dollar volume)are:

NAFTA refers to the:

Global competition:

An important outcome of the Uruguay Round of GATT negotiations was:

Which of these groups of nations are all members of the eurozone?

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 primary benefits of international trade include:

As a percentage of GDP (total output),U.S.exports are:

If the exchange rate changes from $1 = 2 euros to $1 = 3 euros:

Critics of trade adjustment assistance argue that:

Which of the following sets of countries were among those admitted to the European Union in 2004?

The largest goods exports of the United States (in dollar volume,2012)are:

Terms of trade of 1X = 5Y will be acceptable to two countries that have domestic opportunity costs of 1X = 4Y and 1X = 1Y,respectively.

Which of the following nations is not a member of the European Union?

Import quotas are:

Depreciation of the dollar will:

Answer the question on the basis of the following table,which indicates the dollar price of luta,the currency used in the hypothetical economy of Luteland: 200 400 600 800 \ 10 8 6 2 650 400 200 150 Refer to the table.The equilibrium dollar price of luta is:

The WTO is comprised of 28 European nations.

The United States' exports are approximately what percentage of U.S.GDP?

The largest goods imports of the United States (in dollar volume)are:

NAFTA refers to the:

Global competition:

An important outcome of the Uruguay Round of GATT negotiations was:

Which of these groups of nations are all members of the eurozone?

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