Question 1

GDP per capita in middle-income economies is a little over $2,700 per year.

Accepted Answer

A) True 
 B)False  False

Question 2

The study of microeconomics focuses on the:

Accepted Answer

A)  interaction of international trade and domestic production of goods and services. 
B)  operation of the entire economy. 
C)  role of the banking system in the economy. 
D)  structure and performance of particular industries and markets. 
E)  GDP of a country. 
A)  interaction of international trade and domestic production of goods and services. 
B)  operation of the entire economy. 
C)  role of the banking system in the economy. 
D)  structure and performance of particular industries and markets. 
E)  GDP of a country. D

Question 3

Changes in U.S. macroeconomic policy may influence economies in the rest of the world.

Accepted Answer

A) True 
 B)False  True

Question 4

The size of the world economy is approximately:

Accepted Answer

A)  $15 trillion. 
B)  $20 trillion. 
C)  $32 trillion. 
D)  $45 trillion. 
E)  $73 trillion. 
A)  $15 trillion. 
B)  $20 trillion. 
C)  $32 trillion. 
D)  $45 trillion. 
E)  $73 trillion.

Question 5

The majority of economic activity is:

Accepted Answer

A)  international activity. 
B)  domestic activity. 
C)  trade block activity. 
D)  internationalization. 
E)  government spending. 
A)  international activity. 
B)  domestic activity. 
C)  trade block activity. 
D)  internationalization. 
E)  government spending.

Question 6

Describe the various components of international trade in services. How important is this trade relative to trade in goods?

Accepted Answer

International trade in services encompas

Question 7

The average GDP per capita in the low-income economies is approximately:

Accepted Answer

A)  $602. 
B)  $635. 
C)  $812. 
D)  $3,200. 
E)  $2,140. 
A)  $602. 
B)  $635. 
C)  $812. 
D)  $3,200. 
E)  $2,140.

Question 8

The largest economy of the world is:

Accepted Answer

A)  China. 
B)  Japan. 
C)  Germany. 
D)  the UK 
E)  none of the above 
A)  China. 
B)  Japan. 
C)  Germany. 
D)  the UK 
E)  none of the above

Question 9

International trade in services is significantly larger than international trade in merchandise.

Accepted Answer

A) True 
 B)False

Question 10

Foreign direct investment is investment by a company outside of its home country in plant and equipment.

Accepted Answer

A) True 
 B)False

Question 11

International trade in services is growing faster than international trade in goods.

Accepted Answer

A) True 
 B)False

Question 12

How important are imports and exports in relation to the economic output of the world?

Accepted Answer

Imports and exports are crucial componen

Question 13

What is the economic output of the world? How is this output divided among low-, middle-, and high-income economies?

Accepted Answer

The economic output of the world is meas

Question 14

Explain why international trade in goods and services is becoming an increasing percentage of world economic output.

Accepted Answer

International trade in goods and service

Question 15

Imports and exports of merchandise are each about 5% of world economic output.

Accepted Answer

A) True 
 B)False

Question 16

In the last 150 years there have been three distinct periods of world economic growth. Describe these periods and explain why studying these past episodes may be relevant to your future career.

Accepted Answer

The last 150 years have seen three disti

Question 17

We account for non-market and non-reported activities in the world economy by making a reasonable guess of their size and adding them to the official GDP statistics.

Accepted Answer

A) True 
 B)False

Question 18

The high-income economies account for about:

Accepted Answer

A)  40% of world output. 
B)  55% of world output. 
C)  60% of world output. 
D)  63% of world output. 
E)  78% of world output. 
A)  40% of world output. 
B)  55% of world output. 
C)  60% of world output. 
D)  63% of world output. 
E)  78% of world output.

Question 19

Why is trade in goods and services so concentrated among the high-income countries?

Accepted Answer

Trade in goods and services is highly co

Question 20

World exports and imports are about 24% of world output, respectively.

Accepted Answer

A) True 
 B)False

GDP per capita in middle-income economies is a little over $2,700 per year.

The study of microeconomics focuses on the:

Changes in U.S. macroeconomic policy may influence economies in the rest of the world.

The size of the world economy is approximately:

The majority of economic activity is:

Describe the various components of international trade in services. How important is this trade relative to trade in goods?

The average GDP per capita in the low-income economies is approximately:

The largest economy of the world is:

International trade in services is significantly larger than international trade in merchandise.

Foreign direct investment is investment by a company outside of its home country in plant and equipment.

International trade in services is growing faster than international trade in goods.

How important are imports and exports in relation to the economic output of the world?

What is the economic output of the world? How is this output divided among low-, middle-, and high-income economies?

Explain why international trade in goods and services is becoming an increasing percentage of world economic output.

Imports and exports of merchandise are each about 5% of world economic output.

In the last 150 years there have been three distinct periods of world economic growth. Describe these periods and explain why studying these past episodes may be relevant to your future career.

We account for non-market and non-reported activities in the world economy by making a reasonable guess of their size and adding them to the official GDP statistics.

The high-income economies account for about:

Why is trade in goods and services so concentrated among the high-income countries?

World exports and imports are about 24% of world output, respectively.

Why Countries Trade

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Macroeconomic Policy and Floating Exchange Rates

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters

Exam 1: Introduction: An Overview of the World Economy

GDP per capita in middle-income economies is a little over $2,700 per year.

The study of microeconomics focuses on the:

Changes in U.S. macroeconomic policy may influence economies in the rest of the world.

The size of the world economy is approximately:

The majority of economic activity is:

Describe the various components of international trade in services. How important is this trade relative to trade in goods?

The average GDP per capita in the low-income economies is approximately:

The largest economy of the world is:

International trade in services is significantly larger than international trade in merchandise.

Foreign direct investment is investment by a company outside of its home country in plant and equipment.

International trade in services is growing faster than international trade in goods.

How important are imports and exports in relation to the economic output of the world?

What is the economic output of the world? How is this output divided among low-, middle-, and high-income economies?

Explain why international trade in goods and services is becoming an increasing percentage of world economic output.

Imports and exports of merchandise are each about 5% of world economic output.

In the last 150 years there have been three distinct periods of world economic growth. Describe these periods and explain why studying these past episodes may be relevant to your future career.

We account for non-market and non-reported activities in the world economy by making a reasonable guess of their size and adding them to the official GDP statistics.

The high-income economies account for about:

Why is trade in goods and services so concentrated among the high-income countries?

World exports and imports are about 24% of world output, respectively.

Why Countries Trade

Comparative Advantage and the Production Possibilities Frontier

Factor Endowments and the Commodity Composition of Trade

Intra-Industry Trade

The Firm in the World Economy

International Factor Movements

Tariffs

Nontariff Distortions to Trade

International Trade Policy

Regional Economic Arrangements

International Trade and Economic Growth

National Income Accounting and the Balance of Payments

Exchange Rates and Their Determination: A Basic Model

Money, Interest Rates, and the Exchange Rate

Open Economy Macroeconomics

Macroeconomic Policy and Floating Exchange Rates

Fixed Exchange Rates and Currency Unions

International Monetary Arrangements

Capital Flows and the Developing Countries

Filters