Question 1

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

International economics deals with all of these aspects - the flow of goods, services, and payments among nations, policies directed at regulating the flow of goods, services, and payments, and the effects of policies on the welfare of the nation. It is a broad field that encompasses multiple areas of study and analysis.

Question 2

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

International economics is a relatively old field that has been studied for centuries. The earliest recorded theories of international trade date back to the 18th century, with the contributions of Adam Smith, David Ricardo, and others.

Question 3

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

Coffee, tea, and cocoa are not produced in the United States.

Question 4

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

In the study of international economics, the typical approach is to first understand the bases for trade (why nations trade), then examine the balance of payments (to understand a country's financial and economic status in the international context), and often start with the simpler two-nations case before moving on to more complex scenarios involving many nations. Therefore, none of the provided options accurately describe the standard approach in international economics studies.

Question 5

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

While international trade may benefit most members of society by providing increased access to goods and services, cheaper prices, and job opportunities, there are always some who may be negatively affected by the changes. For example, domestic industries may struggle to compete with foreign imports, leading to job losses and economic decline in certain regions. Therefore, while international trade can have a positive impact on society as a whole, it may not benefit everyone equally.

Question 6

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 economic interdependence of nations has grown over time due to increasing globalization, international trade, and investment. Nations rely more on each other for resources, markets, and technology, leading to closer economic ties.

Question 7

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 8

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

Switzerland's economy is highly reliant on international trade. Its standard of living is significantly influenced by its ability to trade with other countries, as it imports a large portion of its food and raw materials and exports high-value goods like pharmaceuticals, machinery, and financial services.

Question 9

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 10

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 basis and the gains from trade are the subject matter of international trade, not international finance.

Question 11

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 answer of The gravity model of international trade predicts...

Question 12

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 13

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 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

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 16

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

The answer of Economic theory:&#10;A)seeks to explain economic events&#10;B)seeks to...

Deck 1: Introduction