Deck 1: Introduction

Question 1

The opening or expansion of international trade usually affects all members of society:

A)positively
B)negatively
C)most positively but some negatively
D)most negatively but some positively

Answer 1

C

Question 2

Today roughly _____ million people live in countries other than the one in which they were born.

A)500
B)100
C)50
D)200

Answer 2

D

Question 3

The gravity model of international trade predicts that trade between two nations is larger

A)the larger the two nations
B)the closer the nations
C)the more open are the two nations
D)all of the above

Answer 3

D

Question 4

Today,how many people live on less that $1 a day across the globe.

A)Roughly 1 billion
B)Roughly 1 million
C)Roughly 1 trillion
D)Roughly 100 million

Question 5

International trade is similar to interregional trade in that both must overcome:

A)distance and space
B)trade restrictions
C)differences in currencies
D)differences in monetary systems

Question 6

Economic theory:

A)seeks to explain economic events
B)seeks to predict economic events
C)abstracts from the many detail that surrounds an economic event
D)all of the above

Question 7

Over time,the economic interdependence of nations has:

A)grown
B)diminished
C)remained unchanged
D)cannot say

Question 8

The 2008 and 2009 financial and economic crisis began in

A)U.S.subprime housing mortgage markets
B)Chinese export markets
C)The Japanese stock market
D)Russian foreign exchange markets

Question 9

An increase in the dollar price of a foreign currency usually:

A)benefit U.S.importers
B)benefits U.S.exporters
C)benefit both U.S.importers and U.S.exporters
D)harms both U.S.importers and U.S.exporters

Question 10

Economic interdependence is greater for:

A)small nations
B)large nations
C)developed nations
D)developing nations

Question 11

A rough measure of the degree of economic interdependence of a nation is given by:

A)the size of the nations' population
B)the percentage of its population to its GDP
C)the percentage of a nation's imports and exports to its GDP
D)all of the above

Question 12

International trade theory refers to:

A)the microeconomic aspects of international trade
B)the macroeconomic aspects of international trade
C)open economy macroeconomics or international finance
D)all of the above

Question 13

Which of the following products are not produced at all in the United States?

A)Coffee,tea,cocoa
B)steel,copper,aluminum
C)petroleum,coal,natural gas
D)typewriters,computers,airplanes

Question 14

Which of the following is not an assumption generally made in the study of international economics?

A)two nations
B)two commodities
C)perfect international mobility of factors
D)two factors of production

Question 15

Which of the following statements with regard to international economics is true?

A)It is a relatively new field
B)it is a relatively old field
C)most of its contributors were not economists
D)none of the above

Question 16

Today the largest net exporter of capital in terms of the total world percentage is

A)Japan
B)The United States
C)Russia
D)China

Question 17

International trade is most important to the standard of living of:

A)the United States
B)Switzerland
C)Germany
D)England

Question 18

International economics deals with:

A)the flow of goods,services,and payments among nations
B)policies directed at regulating the flow of goods,services,and payments
C)the effects of policies on the welfare of the nation
D)all of the above

Question 19

In the study of international economics:

A)international trade policies are examined before the bases for trade
B)adjustment policies are discussed before the balance of payments
C)the case of many nations is discussed before the two-nations case
D)none of the above

Question 20

Which of the following is not the subject matter of international finance?

A)foreign exchange markets
B)the balance of payments
C)the basis and the gains from trade
D)policies to adjust balance of payments disequilibria

Question 21

Identify some of the topics that international economics studies

Question 22

Identify some of the criticisms of the anti-globalization movement.

Question 23

What does the term "globalized world" mean?

Question 24

What does the gravity model suggest?

Question 25

Identify at least three of the major international problems facing the world today.