Question 1

If incomes rise rapidly in the United States and U.S.preferences for foreign goods strengthen,we would expect:

Accepted Answer

A)  the dollar to appreciate in value. 
B)  the dollar to depreciate in value. 
C)  the dollar price of foreign monies to decrease. 
D)  U.S.exports to increase. 
A)  the dollar to appreciate in value. 
B)  the dollar to depreciate in value. 
C)  the dollar price of foreign monies to decrease. 
D)  U.S.exports to increase.

Question 2

Mexican importers are suppliers of pesos in the foreign exchange market.

Accepted Answer

A) True 
 B)False

Question 3

The Trade Adjustment Assistance Act of 2002:

Accepted Answer

A)  enacts temporary tariffs to enable firms hurt by foreign competition to transition to new industries or improve their international competitiveness. 
B)  subsidizes firms for a maximum of two years as they try to establish themselves in foreign markets. 
C)  provides price supports on domestically produced goods for up to 52 weeks. 
D)  provides financial help for up to 78 weeks for workers displaced by imports or plant relocations abroad. 
A)  enacts temporary tariffs to enable firms hurt by foreign competition to transition to new industries or improve their international competitiveness. 
B)  subsidizes firms for a maximum of two years as they try to establish themselves in foreign markets. 
C)  provides price supports on domestically produced goods for up to 52 weeks. 
D)  provides financial help for up to 78 weeks for workers displaced by imports or plant relocations abroad.

Question 4

Which of the following statements is correct?

Accepted Answer

A)  The United States' combined exports and imports are smaller absolutely,but larger as a percentage of GDP,than other nations'. 
B)  A number of other nations have exports and imports that are absolutely larger than those of the United States. 
C)  The United States' combined exports and imports are absolutely larger than any other nation's,but the exports and imports of many other nations are a larger percentage of their GDPs. 
D)  The United States' combined exports and imports are larger absolutely and as a percentage of GDP than any other nation's. 
A)  The United States' combined exports and imports are smaller absolutely,but larger as a percentage of GDP,than other nations'. 
B)  A number of other nations have exports and imports that are absolutely larger than those of the United States. 
C)  The United States' combined exports and imports are absolutely larger than any other nation's,but the exports and imports of many other nations are a larger percentage of their GDPs. 
D)  The United States' combined exports and imports are larger absolutely and as a percentage of GDP than any other nation's.

Question 5

In terms of absolute dollar volume,the world's leading export nations are:

Accepted Answer

A)  Germany,the United States,and China. 
B)  the United States,Japan,and Canada. 
C)  Japan,China,and the United Kingdom. 
D)  Japan,the United States,and France. 
A)  Germany,the United States,and China. 
B)  the United States,Japan,and Canada. 
C)  Japan,China,and the United Kingdom. 
D)  Japan,the United States,and France.

Question 6

In economic terms,the purpose of the fair-trade movement is to:

Accepted Answer

A)  lower prices for consumers of imported good. 
B)  reduce the adverse environmental effects of international trade. 
C)  redistribute gains from international trade in favor of low-income producers and workers. 
D)  prevent the overextraction of scarce raw materials from low-income economies. 
A)  lower prices for consumers of imported good. 
B)  reduce the adverse environmental effects of international trade. 
C)  redistribute gains from international trade in favor of low-income producers and workers. 
D)  prevent the overextraction of scarce raw materials from low-income economies.

Question 7

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.The domestic opportunity cost of 1 fish in Landia is:

Accepted Answer

A)  10 chips. 
B)  2 chips. 
C)  4 chips. 
D)  5 chips. 
A)  10 chips. 
B)  2 chips. 
C)  4 chips. 
D)  5 chips.

Question 8

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.Which of the following would be feasible terms of trade between Landia and Scandia?

Accepted Answer

A)  1 fish for 4 chips. 
B)  1 fish for 6 chips. 
C)  1 fish for 7 chips. 
D)  2 fish for 4 chips. 
A)  1 fish for 4 chips. 
B)  1 fish for 6 chips. 
C)  1 fish for 7 chips. 
D)  2 fish for 4 chips.

Question 9

France,Germany,and Italy are all members of the eurozone.

Accepted Answer

A) True 
 B)False

Question 10

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.The domestic opportunity cost of one unit of X in Beta 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.

Question 11

The main problem posed by trade blocs for nonmember nations is that:

Accepted Answer

A)  member nations may achieve growth rates that exceed those of nonmember nations. 
B)  nonmembers must exchange their currencies for foreign monies before they can engage in export or import transactions. 
C)  nonmembers face tariffs that member nations do not. 
D)  member nations refuse to participate in tariff negotiations sponsored by GATT. 
A)  member nations may achieve growth rates that exceed those of nonmember nations. 
B)  nonmembers must exchange their currencies for foreign monies before they can engage in export or import transactions. 
C)  nonmembers face tariffs that member nations do not. 
D)  member nations refuse to participate in tariff negotiations sponsored by GATT.

Question 12

Which of the following is a true statement?

Accepted Answer

A)  The United States has the world's largest ratio of exports to GDP. 
B)  The United States is almost entirely dependent on other countries in obtaining items such as silk,nickel,tin,and coffee. 
C)  U.S.exports to China greatly exceed U.S.imports from China. 
D)  Since 1947 the United States has accounted for a rising percentage of total world trade. 
A)  The United States has the world's largest ratio of exports to GDP. 
B)  The United States is almost entirely dependent on other countries in obtaining items such as silk,nickel,tin,and coffee. 
C)  U.S.exports to China greatly exceed U.S.imports from China. 
D)  Since 1947 the United States has accounted for a rising percentage of total world trade.

Question 13

The business-to-business (B2B)retrieval of prices of foreign resources via the Internet best illustrates a(n):

Accepted Answer

A)  trade flow. 
B)  capital and labor flow. 
C)  financial flow. 
D)  information flow. 
A)  trade flow. 
B)  capital and labor flow. 
C)  financial flow. 
D)  information flow.

Question 14

The countries comprising NAFTA are:

Accepted Answer

A)  Canada,the United States,and Puerto Rico. 
B)  the United States,Mexico,and Chile. 
C)  the United States,the United Kingdom,and France. 
D)  Canada,Mexico,and the United States. 
A)  Canada,the United States,and Puerto Rico. 
B)  the United States,Mexico,and Chile. 
C)  the United States,the United Kingdom,and France. 
D)  Canada,Mexico,and the United States.

Question 15

Supporters of offshoring claim that its benefits include:

Accepted Answer

A)  increased demand for workers in complementary jobs. 
B)  keeping U.S.firms profitable by lowering production costs. 
C)  reduced prices for consumers. 
D)  all of these. 
A)  increased demand for workers in complementary jobs. 
B)  keeping U.S.firms profitable by lowering production costs. 
C)  reduced prices for consumers. 
D)  all of these.

Question 16

Supporters of trade adjustment assistance claim that it benefits an economy because it:

Accepted Answer

A)  keeps domestic firms competitive in international markets. 
B)  increases political acceptance of trade barrier reductions. 
C)  raises the prices of imports competing with domestic firms. 
D)  does all of these. 
A)  keeps domestic firms competitive in international markets. 
B)  increases political acceptance of trade barrier reductions. 
C)  raises the prices of imports competing with domestic firms. 
D)  does all of these.

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.Assume that before specialization and trade Landia was producing combination C and Scandia was producing combination B.If these two nations now specialize completely based on comparative advantage,the total gains from specialization and trade would be:

Accepted Answer

A)  8 fish and 2 chips. 
B)  10 fish and 4 chips. 
C)  0 fish and 8 chips. 
D)  4 fish and 6 chips. 
A)  8 fish and 2 chips. 
B)  10 fish and 4 chips. 
C)  0 fish and 8 chips. 
D)  4 fish and 6 chips.

Question 18

If the Japanese yen appreciates relative to the Swedish krona,then the krona:

Accepted Answer

A)  will be more expensive to the Japanese. 
B)  may either appreciate or depreciate relative to the yen. 
C)  will appreciate relative to the yen. 
D)  will depreciate relative to the yen. 
A)  will be more expensive to the Japanese. 
B)  may either appreciate or depreciate relative to the yen. 
C)  will appreciate relative to the yen. 
D)  will depreciate relative to the yen.

Question 19

The introduction and use of the euro are expected to:

Accepted Answer

A)  increase the rate of inflation slightly in the eurozone nations. 
B)  increase poverty substantially in eurozone nations. 
C)  increase international trade among the eurozone nations. 
D)  increase income inequality within the eurozone nations. 
A)  increase the rate of inflation slightly in the eurozone nations. 
B)  increase poverty substantially in eurozone nations. 
C)  increase international trade among the eurozone nations. 
D)  increase income inequality within the eurozone nations.

Question 20

The World Trade Organization (WTO):

Accepted Answer

A)  sets tariffs to balance international trade among nations. 
B)  is the successor to GATT. 
C)  is better known as the European Union. 
D)  sets exchange rates to balance international trade among nations. 
A)  sets tariffs to balance international trade among nations. 
B)  is the successor to GATT. 
C)  is better known as the European Union. 
D)  sets exchange rates to balance international trade among nations.

If incomes rise rapidly in the United States and U.S.preferences for foreign goods strengthen,we would expect:

Mexican importers are suppliers of pesos in the foreign exchange market.

The Trade Adjustment Assistance Act of 2002:

Which of the following statements is correct?

In terms of absolute dollar volume,the world's leading export nations are:

In economic terms,the purpose of the fair-trade movement is to:

France,Germany,and Italy are all members of the eurozone.

The main problem posed by trade blocs for nonmember nations is that:

Which of the following is a true statement?

The business-to-business (B2B)retrieval of prices of foreign resources via the Internet best illustrates a(n):

The countries comprising NAFTA are:

Supporters of offshoring claim that its benefits include:

Supporters of trade adjustment assistance claim that it benefits an economy because it:

If the Japanese yen appreciates relative to the Swedish krona,then the krona:

The introduction and use of the euro are expected to:

The World Trade Organization (WTO):

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

If incomes rise rapidly in the United States and U.S.preferences for foreign goods strengthen,we would expect:

Mexican importers are suppliers of pesos in the foreign exchange market.

The Trade Adjustment Assistance Act of 2002:

Which of the following statements is correct?

In terms of absolute dollar volume,the world's leading export nations are:

In economic terms,the purpose of the fair-trade movement is to:

France,Germany,and Italy are all members of the eurozone.

The main problem posed by trade blocs for nonmember nations is that:

Which of the following is a true statement?

The business-to-business (B2B)retrieval of prices of foreign resources via the Internet best illustrates a(n):

The countries comprising NAFTA are:

Supporters of offshoring claim that its benefits include:

Supporters of trade adjustment assistance claim that it benefits an economy because it:

If the Japanese yen appreciates relative to the Swedish krona,then the krona:

The introduction and use of the euro are expected to:

The World Trade Organization (WTO):

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