Question 1

The opening or expansion of international trade usually affects all members of society:&#10;A)positively&#10;B)negatively&#10;C)most positively but some negatively&#10;D)most negatively but some positively

Accepted Answer

The opening or expansion of international trade usually affects all members of society positively, as it increases access to goods and services, creates job opportunities, and promotes economic growth. However, some individuals or groups may be negatively affected, such as those in industries that face increased competition from imports or those in lower-skilled labor markets. Therefore, while the overall effect is positive, there are some who may experience negative consequences.

Question 2

Today roughly _____ million people live in countries other than the one in which they were born.&#10;A)500&#10;B)100&#10;C)50&#10;D)200

Accepted Answer

D

Question 3

The gravity model of international trade predicts that trade between two nations is larger&#10;A)the larger the two nations&#10;B)the closer the nations&#10;C)the more open are the two nations&#10;D)all of the above

Accepted Answer

The gravity model of international trade takes into account three main factors: the size of the economies, the distance between them, and their openness to trade. Therefore, the best choice is D, as all three factors are positively correlated with the level of trade between two nations according to the gravity model.

Question 4

Today,how many people live on less that $1 a day across the globe.&#10;A)Roughly 1 billion&#10;B)Roughly 1 million&#10;C)Roughly 1 trillion&#10;D)Roughly 100 million

Accepted Answer

According to the World Bank, as of 2019, approximately 9.2% of the world's population lives in extreme poverty, which translates to roughly 689 million people living on less than $1.90 a day. However, if we lower the threshold to $1 a day, the number of people living in extreme poverty would be even higher, estimated to be around 1 billion.

Question 5

International trade is similar to interregional trade in that both must overcome:&#10;A)distance and space&#10;B)trade restrictions&#10;C)differences in currencies&#10;D)differences in monetary systems

Accepted Answer

Both international and interregional trade must overcome the challenges of distance and space, as goods need to be transported over potentially long distances regardless of whether the trade is happening within a country or between countries.

Question 6

Economic theory:&#10;A)seeks to explain economic events&#10;B)seeks to predict economic events&#10;C)abstracts from the many detail that surrounds an economic event&#10;D)all of the above

Accepted Answer

Economic theory seeks to explain economic events, predict economic events, and abstract from the many details that surround an economic event.

Question 7

Over time,the economic interdependence of nations has:&#10;A)grown&#10;B)diminished&#10;C)remained unchanged&#10;D)cannot say

Accepted Answer

The trend of globalization has led to an increase in trade and investment opportunities around the world, resulting in a growing economic interdependence among nations. This is evidenced by the expansion of international trade agreements, multinational corporations operating in multiple countries, and the growth of global financial markets.

Question 8

The 2008 and 2009 financial and economic crisis began in&#10;A)U.S.subprime housing mortgage markets&#10;B)Chinese export markets&#10;C)The Japanese stock market&#10;D)Russian foreign exchange markets

Accepted Answer

The 2008 and 2009 financial and economic crisis began in the U.S. subprime housing mortgage markets. This crisis was caused by the collapse of the housing market, which led to a liquidity crisis in the US banking system, triggering a global credit crisis. It resulted in the bankruptcy of many banks, including Lehman Brothers, and massive government bailouts of financial institutions. The crisis spread globally, causing a significant economic downturn throughout the world.

Question 9

An increase in the dollar price of a foreign currency usually:&#10;A)benefit U.S.importers&#10;B)benefits U.S.exporters&#10;C)benefit both U.S.importers and U.S.exporters&#10;D)harms both U.S.importers and U.S.exporters

Accepted Answer

When the dollar price of a foreign currency increases, it means the dollar has depreciated relative to that currency. This makes U.S. goods cheaper for foreign buyers, thus benefiting U.S. exporters by potentially increasing their sales abroad.

Question 10

Economic interdependence is greater for:&#10;A)small nations&#10;B)large nations&#10;C)developed nations&#10;D)developing nations

Accepted Answer

The answer of Economic interdependence is greater for:&#10;A)small nations&#10;B)large nations&#10;C)developed...

Question 11

A rough measure of the degree of economic interdependence of a nation is given by:&#10;A)the size of the nations' population&#10;B)the percentage of its population to its GDP&#10;C)the percentage of a nation's imports and exports to its GDP&#10;D)all of the above

Accepted Answer

The answer of A rough measure of the degree of...

Question 12

International trade theory refers to:&#10;A)the microeconomic aspects of international trade&#10;B)the macroeconomic aspects of international trade&#10;C)open economy macroeconomics or international finance&#10;D)all of the above

Accepted Answer

The answer of International trade theory refers to:&#10;A)the microeconomic aspects...

Question 13

Which of the following products are not produced at all in the United States?&#10;A)Coffee,tea,cocoa&#10;B)steel,copper,aluminum&#10;C)petroleum,coal,natural gas&#10;D)typewriters,computers,airplanes

Accepted Answer

The answer of Which of the following products are not...

Question 14

Which of the following is not an assumption generally made in the study of international economics?&#10;A)two nations&#10;B)two commodities&#10;C)perfect international mobility of factors&#10;D)two factors of production

Accepted Answer

The answer of Which of the following is not an...

Question 15

Which of the following statements with regard to international economics is true?&#10;A)It is a relatively new field&#10;B)it is a relatively old field&#10;C)most of its contributors were not economists&#10;D)none of the above

Accepted Answer

The answer of Which of the following statements with regard...

Question 16

Today the largest net exporter of capital in terms of the total world percentage is&#10;A)Japan&#10;B)The United States&#10;C)Russia&#10;D)China

Accepted Answer

The answer of Today the largest net exporter of capital...

Question 17

International trade is most important to the standard of living of:&#10;A)the United States&#10;B)Switzerland&#10;C)Germany&#10;D)England

Accepted Answer

The answer of International trade is most important to the...

Question 18

International economics deals with:&#10;A)the flow of goods,services,and payments among nations&#10;B)policies directed at regulating the flow of goods,services,and payments&#10;C)the effects of policies on the welfare of the nation&#10;D)all of the above

Accepted Answer

The answer of International economics deals with:&#10;A)the flow of goods,services,and...

Question 19

In the study of international economics:&#10;A)international trade policies are examined before the bases for trade&#10;B)adjustment policies are discussed before the balance of payments&#10;C)the case of many nations is discussed before the two-nations case&#10;D)none of the above

Accepted Answer

The answer of In the study of international economics:&#10;A)international trade...

Question 20

Which of the following is not the subject matter of international finance?&#10;A)foreign exchange markets&#10;B)the balance of payments&#10;C)the basis and the gains from trade&#10;D)policies to adjust balance of payments disequilibria

Accepted Answer

The answer of Which of the following is not the...

Question 21

Identify some of the topics that international economics studies

Accepted Answer

The answer of Identify some of the topics that international...

Question 22

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

Accepted Answer

The answer of Identify some of the criticisms of the...

Question 23

What does the term &#34;globalized world&#34; mean?

Accepted Answer

The answer of What does the term &#34;globalized world&#34; mean?...

Question 24

What does the gravity model suggest?

Accepted Answer

The answer of What does the gravity model suggest?...

Question 25

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

Accepted Answer

The answer of Identify at least three of the major...

Deck 1: Introduction