Question 1

Exports are:

Accepted Answer

A)  goods or services purchased from a foreign resident. 
B)  goods or services sold to foreign residents. 
C)  goods only sold to foreigners-you cannot sell services to foreigners. 
D)  services only-exports do not include goods. 
A)  goods or services purchased from a foreign resident. 
B)  goods or services sold to foreign residents. 
C)  goods only sold to foreigners-you cannot sell services to foreigners. 
D)  services only-exports do not include goods.

Question 2

Why do larger countries tend to have lower ratios of international trade to GDP than smaller countries?

Accepted Answer

A)  Larger countries tend to have more trade between states or provinces within their borders than smaller countries. 
B)  Larger countries tend to have higher tariffs than smaller countries. 
C)  Larger countries tend to trade with other larger countries. 
D)  Larger countries tend to have larger trade deficits than smaller countries. 
A)  Larger countries tend to have more trade between states or provinces within their borders than smaller countries. 
B)  Larger countries tend to have higher tariffs than smaller countries. 
C)  Larger countries tend to trade with other larger countries. 
D)  Larger countries tend to have larger trade deficits than smaller countries.

Question 3

If the value of a nation's imports is more than the value of its exports, then the nation is experiencing:

Accepted Answer

A)  a trade deficit. 
B)  a trade surplus. 
C)  balanced trade. 
D)  a trade balance. 
A)  a trade deficit. 
B)  a trade surplus. 
C)  balanced trade. 
D)  a trade balance.

Question 4

Currently, which of the following countries is the world's largest exporter of goods and services (in dollar volume)?

Accepted Answer

A)  China 
B)  the United States 
C)  Japan 
D)  Germany 
A)  China 
B)  the United States 
C)  Japan 
D)  Germany

Question 5

Most foreign direct investment between industrial countries is:

Accepted Answer

A)  egalitarian FDI. 
B)  balanced FDI. 
C)  horizontal FDI. 
D)  vertical FDI. 
A)  egalitarian FDI. 
B)  balanced FDI. 
C)  horizontal FDI. 
D)  vertical FDI.

Question 6

Which of the following is NOT included in the calculation of a country's gross domestic product (GDP)?

Accepted Answer

A)  the value of all its intermediate goods produced in a year 
B)  the value of all its exports produced in a year 
C)  the value of all its final consumption goods produced in a year 
D)  All of these are included in the calculation of a country's gross domestic product. 
A)  the value of all its intermediate goods produced in a year 
B)  the value of all its exports produced in a year 
C)  the value of all its final consumption goods produced in a year 
D)  All of these are included in the calculation of a country's gross domestic product.

Question 7

A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:

Accepted Answer

A)  a goods' import. 
B)  a service export. 
C)  a service import. 
D)  a goods' export. 
A)  a goods' import. 
B)  a service export. 
C)  a service import. 
D)  a goods' export.

Question 8

Which of the following countries is NOT a member of the Organization for Economic Cooperation and Development?

Accepted Answer

A)  China 
B)  the United States 
C)  Germany 
D)  the United Kingdom 
A)  China 
B)  the United States 
C)  Germany 
D)  the United Kingdom

Question 9

Suppose that a country has a low ratio of trade to GDP. Which of the following may be a possible explanation for this?

Accepted Answer

A)  The country has low tariffs on imports. 
B)  The country is geographically distant from the rest of the world. 
C)  The country is very large. 
D)  The country produces only agricultural products. 
A)  The country has low tariffs on imports. 
B)  The country is geographically distant from the rest of the world. 
C)  The country is very large. 
D)  The country produces only agricultural products.

Question 10

Which of the following transactions is NOT a trade flow?

Accepted Answer

A)  domestic residents' purchases of foreign-made goods 
B)  domestic residents' purchases of foreign-provided services 
C)  domestic residents' purchases of foreign stocks and bonds 
D)  domestic residents' purchases of foreign-produced software 
A)  domestic residents' purchases of foreign-made goods 
B)  domestic residents' purchases of foreign-provided services 
C)  domestic residents' purchases of foreign stocks and bonds 
D)  domestic residents' purchases of foreign-produced software

Question 11

The article "A Sea Change in Shipping 50 Years Ago" states that the amount of cargo carried in a ship and the speed of the ship __________ from 1950 to 1976.

Accepted Answer

A)  increased 
B)  decreased 
C)  stayed the same 
D)  were not related 
A)  increased 
B)  decreased 
C)  stayed the same 
D)  were not related

Question 12

Which of the following countries is NOT a member of the European Union?

Accepted Answer

A)  Denmark 
B)  Finland 
C)  Norway 
D)  Sweden 
A)  Denmark 
B)  Finland 
C)  Norway 
D)  Sweden

Question 13

What is an import quota?

Accepted Answer

A)  a limit on the quantity of a certain import 
B)  a tax on the value of an import 
C)  a health or safety precaution affecting goods that may cause long-term harm to humans or animals 
D)  a bureaucratic rule that can be overridden by the Secretary for International Trade 
A)  a limit on the quantity of a certain import 
B)  a tax on the value of an import 
C)  a health or safety precaution affecting goods that may cause long-term harm to humans or animals 
D)  a bureaucratic rule that can be overridden by the Secretary for International Trade

Question 14

Which country is the source of the largest number of immigrants from Latin America in the United States?

Accepted Answer

A)  Brazil 
B)  Colombia 
C)  Mexico 
D)  Venezuela 
A)  Brazil 
B)  Colombia 
C)  Mexico 
D)  Venezuela

Question 15

If the trade-to-GDP ratio is 25% and the overall value of trade (imports plus exports) is $175 billion, then the GDP is:

Accepted Answer

A)  $250 billion. 
B)  $700 billion. 
C)  $1 trillion. 
D)  $0.5 trillion. 
A)  $250 billion. 
B)  $700 billion. 
C)  $1 trillion. 
D)  $0.5 trillion.

Exports are:

Why do larger countries tend to have lower ratios of international trade to GDP than smaller countries?

If the value of a nation's imports is more than the value of its exports, then the nation is experiencing:

Currently, which of the following countries is the world's largest exporter of goods and services (in dollar volume)?

Most foreign direct investment between industrial countries is:

Which of the following is NOT included in the calculation of a country's gross domestic product (GDP)?

A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:

Which of the following countries is NOT a member of the Organization for Economic Cooperation and Development?

Suppose that a country has a low ratio of trade to GDP. Which of the following may be a possible explanation for this?

Which of the following transactions is NOT a trade flow?

The article "A Sea Change in Shipping 50 Years Ago" states that the amount of cargo carried in a ship and the speed of the ship __________ from 1950 to 1976.

Which of the following countries is NOT a member of the European Union?

What is an import quota?

Which country is the source of the largest number of immigrants from Latin America in the United States?

If the trade-to-GDP ratio is 25% and the overall value of trade (imports plus exports) is $175 billion, then the GDP is:

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

Filters

Exam 1: Trade in the Global Economy

Exports are:

Why do larger countries tend to have lower ratios of international trade to GDP than smaller countries?

If the value of a nation's imports is more than the value of its exports, then the nation is experiencing:

Currently, which of the following countries is the world's largest exporter of goods and services (in dollar volume)?

Most foreign direct investment between industrial countries is:

Which of the following is NOT included in the calculation of a country's gross domestic product (GDP)?

A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:

Which of the following countries is NOT a member of the Organization for Economic Cooperation and Development?

Suppose that a country has a low ratio of trade to GDP. Which of the following may be a possible explanation for this?

Which of the following transactions is NOT a trade flow?

The article "A Sea Change in Shipping 50 Years Ago" states that the amount of cargo carried in a ship and the speed of the ship __________ from 1950 to 1976.

Which of the following countries is NOT a member of the European Union?

What is an import quota?

Which country is the source of the largest number of immigrants from Latin America in the United States?

If the trade-to-GDP ratio is 25% and the overall value of trade (imports plus exports) is $175 billion, then the GDP is:

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

Filters