Question 1

GDP has several major exclusions, including:

Accepted Answer

A)  economic activity that does not occur in a market. 
B)  items resold during the period. 
C)  legally sold items that are non-taxable. 
D)  illegal activity. 
E)  all of the above.

Question 2

Tourism is an example of international trade in services.

Accepted Answer

A) True 
 B)False

Question 3

For all types of economies imports and exports have grown faster than GDP.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following time periods was one of unusually rapid growth in the world economy?

Accepted Answer

A)  1850-1914 
B)  1914-1945 
C)  1929-1939 
D)  1914-1920 
E)  1936-1940

Question 5

The total GDP of the low-income economies is a little over $1 trillion.

Accepted Answer

A) True 
 B)False

Question 6

What is the current division of the economic output of the world in terms of the share generated by the U.S. versus the rest of the world? How has the U.S. share changed since World War II, and how is it likely to change in the next 20 years?

Accepted Answer

The answer of What is the current division of the...

Question 7

International trade is much more important than domestic economic activities such as consumption by the public or investment.

Accepted Answer

A) True 
 B)False

Question 8

A simultaneous drop in GDP in the U.S., Germany, and Japan would reduce the probability of a global recession.

Accepted Answer

A) True 
 B)False

Question 9

The study of microeconomics has nothing to do with the study of international economics.

Accepted Answer

A) True 
 B)False

Question 10

The total GDP of the world economy is approximately:

Accepted Answer

A)  $10 trillion. 
B)  $15 trillion. 
C)  $32 trillion. 
D)  $45 trillion. 
E)  $86 trillion.

Question 11

In the U.S., for the last 50 years the percentage of GDP accounted for by imports and exports has been continually falling.

Accepted Answer

A) True 
 B)False

Question 12

The total output of the world economy in a month is greater than the total volume of foreign exchange trading for a month.

Accepted Answer

A) True 
 B)False

Question 13

The study of international trade is completely unrelated to the principles of microeconomics.

Accepted Answer

A) True 
 B)False

Question 14

Changes in foreign economic conditions never have any noticeable impact on the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is false?

Accepted Answer

A)  The world economy grew at a fast rate between 1850 and 1914. 
B)  The world economy grew at a slow rate between 1915 and 1945. 
C)  The world economy grew at a fast rate between 1946 and 1973. 
D)  The world economy has been growing at a fast rate since 1973. 
E)  none of the above

Question 16

Trade in services is less 'visible' than trade in merchandise because:

Accepted Answer

A)  the value of services is more difficult to measure. 
B)  services lower valuation makes them less important and thus less visible. 
C)  the study of services is older and needs to be studied less. 
D)  services are such a small percentage of GDP. 
E)  Service imports cannot be counted accurately.

Question 17

Nearly 70% of world imports and exports are accounted for by the high-income economies.

Accepted Answer

A) True 
 B)False

Question 18

Trading in the foreign exchange markets has reached a level of $15 trillion per day.

Accepted Answer

A) True 
 B)False

Question 19

The global economic boom, which lasted from 1850 to 1914, was partially attributable to rapid advances in transportation and communication.

Accepted Answer

A) True 
 B)False

Question 20

The U.S. state with the highest Gross State Product (GSP) is:

Accepted Answer

A)  New York. 
B)  Texas. 
C)  Florida. 
D)  California. 
E)  Florida

Exam 1: Introduction: An Overview of the World Economy

GDP has several major exclusions, including:

Tourism is an example of international trade in services.

For all types of economies imports and exports have grown faster than GDP.

Which of the following time periods was one of unusually rapid growth in the world economy?

The total GDP of the low-income economies is a little over $1 trillion.

What is the current division of the economic output of the world in terms of the share generated by the U.S. versus the rest of the world? How has the U.S. share changed since World War II, and how is it likely to change in the next 20 years?

International trade is much more important than domestic economic activities such as consumption by the public or investment.

A simultaneous drop in GDP in the U.S., Germany, and Japan would reduce the probability of a global recession.

The study of microeconomics has nothing to do with the study of international economics.

The total GDP of the world economy is approximately:

In the U.S., for the last 50 years the percentage of GDP accounted for by imports and exports has been continually falling.

The total output of the world economy in a month is greater than the total volume of foreign exchange trading for a month.

The study of international trade is completely unrelated to the principles of microeconomics.

Changes in foreign economic conditions never have any noticeable impact on the U.S. economy.

Which of the following statements is false?

Trade in services is less 'visible' than trade in merchandise because:

Nearly 70% of world imports and exports are accounted for by the high-income economies.

Trading in the foreign exchange markets has reached a level of $15 trillion per day.

The global economic boom, which lasted from 1850 to 1914, was partially attributable to rapid advances in transportation and communication.

The U.S. state with the highest Gross State Product (GSP) is: