Deck 1: Introduction: An Overview of the World Economy

Question 1

GDP is:

A) measured in physical units.
B) a measure of the economic growth rate.
C) the total market value of all final goods and services produced in a country in aYear.
D) a per capita measure.

Answer 1

the total market value of all final goods and services produced in a country in aYear.

Question 2

The average GDP per capita in the high-income economies is approximately:

A) $5,642.
B) $10,000.
C) $15,000.
D) $34,316.

Answer 2

$34,316.

Question 3

The GDP of the U.S. is approximately:

A) $12.4 trillion.
B) $14.6 trillion.
C) $20.4 trillion.
D) $32 trillion.

Answer 3

$12.4 trillion.

Question 4

The daily volume of trading in the foreign exchange market is:

A) $75 million.
B) $100 million.
C) $500 billion.
D) $2 trillion.

Question 5

Describe the two different parts of international economics.

Question 6

Why is the discipline of economics similar to medicine?

Question 7

What is the economic output of the world? How is this output divided among low-, middle-, and high-income economies?

Question 8

What is the current division of the economic output of the world in terms of the share generated by the U.S., Germany, and Japan 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?

Question 9

Describe the differences in GDP per capita among low-, middle-, and high-income economies. Give an example of each type of country.

Question 10

How important are imports and exports in relation to the economic output of the world?

Question 11

Why is trade in goods and services so concentrated among the high-income countries?

Question 12

What is the term used to describe the economic output of a state? Which country in the world economy is most similar to your state in terms of economic output?

Question 13

Describe the various components of international trade in services. How important is this trade relative to trade in goods?

Question 14

Describe the differences between foreign direct investment (FDI) and movements of portfolio capital.

Question 15

Explain why international trade in goods and services is becoming an increasing percentage of world economic output.

Question 16

In the last 150 years there have been three distinct periods of world economic growth. Describe these periods and explain why studying these past episodes may be relevant to your future career.

Question 17

Briefly describe what the term globalization means and what is the best way to analyze this term?