Question 1

As a result of contractionary monetary policy,the open-economy outcome,compared to the closed-economy outcome,features a ___________ fall in Real GDP and a ____________ fall in the price level.

Accepted Answer

A)  larger;larger
B)  larger;smaller
C)  smaller;larger
D)  smaller;smaller A

Question 2

The average tariff rate in the US today is about 40 percent,but it was only 1.6 percent in 1946.

Accepted Answer

A) True 
 B)False  False

Question 3

Globalization is closely aligned with which of the following?

Accepted Answer

A)  increased free enterprise
B)  more government control of markets
C)  less freedom of movement for people
D)  less freedom of movement for goods A

Question 4

If U.S.real interest rates fall,international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States.

Accepted Answer

A)  upward;upward
B)  upward;downward
C)  downward;upward
D)  downward;downward

Question 5

According to the textbook,some people refer to the period from ___________________ as the First Era of globalization.

Accepted Answer

A)  the late 1700s to the late 1800s
B)  the mid-1900s to the late 1980s
C)  the late 1600s to the mid-1800s
D)  the mid-1800s to the late 1920s

Question 6

According to the KOF Swiss Economic Institute's globalization indices for the world,globalization

Accepted Answer

A)  has been on a downward trend.
B)  has been constant since 1970.
C)  was on an upward trend in the 1970s and 1980s,but has more recently been on a downward trend.
D)  has been on an upward trend.

Question 7

If an economy's exports are $560 billion and its net exports are -$130 billion,its imports are

Accepted Answer

A)  $690 billion.
B)  $430 billion.
C)  -$430 billion.
D)  -$690 billion.

Question 8

If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay ________________ for foreign inputs,and the U.S.SRAS curve will shift __________________.

Accepted Answer

A)  less;rightward
B)  less;leftward
C)  more;rightward
D)  more;leftward

Question 9

One study from the United Kingdom (cited in the textbook)showed that almost ______ times as many firms that faced global competition reported innovations in product or process compared to firms that did not face global competition.

Accepted Answer

A)  three
B)  six
C)  nine
D)  twelve

Question 10

Dollar depreciation raises United States Real GDP when the __________ shift of the AD curve exceeds the _________________ shift of the SRAS curve.

Accepted Answer

A)  rightward;rightward
B)  rightward;leftward
C)  leftward;rightward
D)  leftward;leftward

Question 11

Suppose the supply of Malaysian rubber increases.If U.S.producers purchase this rubber as an input,in the United States,this would cause a

Accepted Answer

A)  rightward shift of the AD curve.
B)  leftward shift of the AD curve.
C)  rightward shift of the SRAS curve.
D)  leftward shift of the SRAS curve.

Question 12

According to the textbook,in which of the following countries was tipping found to occur very infrequently?

Accepted Answer

A)  Mexico
B)  United States
C)  Egypt
D)  Vietnam

Question 13

Some of the benefits of globalization include

Accepted Answer

A)  increased international trade.
B)  greater income per person.
C)  lower prices for goods.
D)  greater product variety.
E)  all of the above

Question 14

When the United States moves upward along the J-curve,it is because a depreciation of the dollar is having the _____________ effect of _____________ the number of dollars spent on imports.

Accepted Answer

A)  long-run;increasing
B)  long-run;reducing
C)  short-run;increasing
D)  short-run;reducing

Question 15

If Japan's Real GDP rises,this tends to _________________ United States exports,shifting the United States AD curve to the __________________.

Accepted Answer

A)  raise;right
B)  raise;left
C)  lower;right
D)  lower;left

Question 16

In 1946 the average tariff rate in the United States was around ___________ percent,while the average tariff in 2012 was about ____________ percent.

Accepted Answer

A)  14.0;2.4
B)  18.7;12.8
C)  40.0;1.8
D)  30.2;21.0

Question 17

The United States SRAS curve may shift to the left if we ____________________ Malaysia and the dollar ________________ against the Malaysian ringgit.

Accepted Answer

A)  buy raw materials from;appreciates
B)  buy raw materials from;depreciates
C)  sell finished goods to;appreciates
D)  sell finished goods to;depreciates

Question 18

In 2000,the top 100 transnational companies produced about _____________ percent of the entire world's output,which was approximately as much as what ________________ produced that year.

Accepted Answer

A)  4.1;Japan
B)  4.3;the United Kingdom
C)  10.9;China
D)  25.1;the United States

Question 19

Which of the following statements is true?

Accepted Answer

A)  Economists are fairly certain that globalization leads to an increased standard of living.
B)  During the 1990s,the annual percentage change in output per person was negative in globalized developing countries,but positive in less globablized countries.
C)  When it comes to globalization it is generally easier to see the benefits than to see the costs.
D)  The benefits of globalization are more visible than the costs,since they tend to be concentrated on a relatively smaller group of people.

Question 20

A rise in the price of foreign inputs leads to a

Accepted Answer

A)  rightward shift of the AD curve.
B)  leftward shift of the AD curve.
C)  rightward shift of the SRAS curve.
D)  leftward shift of the SRAS curve.

Exam 23: International Finance

As a result of contractionary monetary policy,the open-economy outcome,compared to the closed-economy outcome,features a _ fall in Real GDP and a __ fall in the price level.

The average tariff rate in the US today is about 40 percent,but it was only 1.6 percent in 1946.

Globalization is closely aligned with which of the following?

If U.S.real interest rates fall,international repercussions put _ pressure on the price level and __ pressure on Real GDP in the United States.

According to the textbook,some people refer to the period from ___________________ as the First Era of globalization.

According to the KOF Swiss Economic Institute's globalization indices for the world,globalization

If an economy's exports are $560 billion and its net exports are -$130 billion,its imports are

If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay for foreign inputs,and the U.S.SRAS curve will shift __.

One study from the United Kingdom (cited in the textbook) showed that almost ______ times as many firms that faced global competition reported innovations in product or process compared to firms that did not face global competition.

Dollar depreciation raises United States Real GDP when the shift of the AD curve exceeds the _______ shift of the SRAS curve.

Suppose the supply of Malaysian rubber increases.If U.S.producers purchase this rubber as an input,in the United States,this would cause a

According to the textbook,in which of the following countries was tipping found to occur very infrequently?

Some of the benefits of globalization include

When the United States moves upward along the J-curve,it is because a depreciation of the dollar is having the _ effect of _ the number of dollars spent on imports.

If Japan's Real GDP rises,this tends to _ United States exports,shifting the United States AD curve to the __.

In 1946 the average tariff rate in the United States was around _ percent,while the average tariff in 2012 was about __ percent.

The United States SRAS curve may shift to the left if we ____ Malaysia and the dollar against the Malaysian ringgit.

In 2000,the top 100 transnational companies produced about _ percent of the entire world's output,which was approximately as much as what ____ produced that year.

Which of the following statements is true?

A rise in the price of foreign inputs leads to a