Question 1

In 2001,the world GDP ______________,while the world trade level ____________ by 1 percent.

Accepted Answer

A) decreased,increased 
B) increased,decreased 
C) decreased,decreased 
D) increased,increased

Question 2

Slow growth in what two regions has led to calls for trade protectionism and dampened the growth of the entire world economy?

Accepted Answer

A) US and South America 
B) Japan and Europe 
C) US and Europe 
D) Japan and South America

Question 3

_____________ in the United States attracts funds from other nations.

Accepted Answer

A) An increase in net exports 
B) A decrease in interest rates 
C) An increase in the inflation rate 
D) An increase in interest rates

Question 4

The persistence of ________________ in exchange rates has led the international community to call for reforms of the current international monetary system.

Accepted Answer

A) excessive volatility and disequilibria 
B) long run stability 
C) arbitrage opportunities 
D) equilibrium

Question 5

An inflow of capital funds to the United States tends to increase the international value of the dollar,stimulating ____________ and discouraging ________________.

Accepted Answer

A) US exports,US imports 
B) US imports,economic activity abroad 
C) US economic activity,economic activity abroad 
D) US imports,US exports

Question 6

When interest rates increase in the United States,capital flows from abroad will:

Accepted Answer

A) increase 
B) decrease 
C) no change 
D) not be available anymore

Question 7

The increasing integration of economies around the world,particularly through trade and financial flows,is:

Accepted Answer

A) outsourcing 
B) macroeconomics 
C) globalization 
D) autarky

Question 8

Trade protectionism in industrial countries is one of the primary problems/issues faced by international economists and policymakers in today's economically interdependent world.Explain.

Accepted Answer

The answer of Trade protectionism in industrial countries is one...

Question 9

Which of the following analyzes the basis for and gains from trade?

Accepted Answer

A) Balance of payments 
B) Foreign exchange market 
C) International trade policy 
D) International trade theory

Question 10

During the last decade,almost _______ of United States' unemployed were jobless longer than one year.

Accepted Answer

A) 11% 
B) 30% 
C) 45% 
D) 55%

Question 11

The most effective trade policy would be _______________,which allows each nation to specialize in efficient production of commodities.

Accepted Answer

A) free trade 
B) protectionism 
C) a closed economy 
D) restricted trade

Question 12

Reform policies are being developed in struggling economies to prevent further economic collapses.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to the Global Economy

In 2001,the world GDP __,while the world trade level by 1 percent.