Econ

135 Questions | Total Attempts: 141

SettingsSettingsSettings
Please wait...
Econ Quizzes & Trivia

Questions and Answers
  • 1. 
    Globalization:
    • A. 

      Increases efficiency in production

    • B. 

      May lead to job losses

    • C. 

      Is inevitable

    • D. 

      All of the above

  • 2. 
    The anti-globalization movement blames globalization for
    • A. 

      Increasing poverty and world income inequalities

    • B. 

      Child labor

    • C. 

      Environmental pollution

    • D. 

      All of the above d. all of the above all of the above

  • 3. 
    Which of the following products are not produced at all in the United States?
    • A. 

      Coffee, tea, cocoa

    • B. 

      Steel, copper, aluminum

    • C. 

      Petroleum, coal, natural gas

    • D. 

      Typewriters, computers, airplanes

  • 4. 
    International trade is most important to the standard of living of:
    • A. 

      The United States

    • B. 

      Switzerland

    • C. 

      Germany

    • D. 

      England

  • 5. 
    Over time, the economic interdependence of nations has:
    • A. 

      Grown

    • B. 

      Diminished

    • C. 

      Remained unchanged

    • D. 

      Cannot say

  • 6. 
    A rough measure of the degree of economic interdependence of a nation is given by:
    • A. 

      The size of the nations' population

    • B. 

      The ratio of its population to its GDP

    • C. 

      The ratio of a nation's imports and exports to its GDP

    • D. 

      All of the above

  • 7. 
    Economic interdependence is greater for:
    • A. 

      Small nations

    • B. 

      Large nations

    • C. 

      Developed nations

    • D. 

      Developing nations

  • 8. 
    Immigration benefits the United States by:
    • A. 

      Increasing the availability of skilled and technical people

    • B. 

      Increasing the availability of all kinds of labor

    • C. 

      Increasing the supply of capital

    • D. 

      All of the above

  • 9. 
    Capital move across national boundaries to:
    • A. 

      Earn higher interest

    • B. 

      Earn higher profit

    • C. 

      Diversify risk

    • D. 

      All of the above

  • 10. 
    International economics deals with:
    • A. 

      The flow of goods, services and payments among nations

    • B. 

      Policies directed at regulating the flow of goods, services and payments

    • C. 

      The effects of policies affecting international trade and finance on the welfare of the nation

    • D. 

      All of the above

  • 11. 
    International trade theory refers to:
    • A. 

      The microeconomic aspects of international trade

    • B. 

      The macroeconomic aspects of international trade

    • C. 

      Open-economy macroeconomics or international finance

    • D. 

      All of the above

  • 12. 
    Which of the following is not the subject matter of international finance?
    • A. 

      Foreign exchange markets

    • B. 

      The balance of payments

    • C. 

      The basis and the gains from trade

    • D. 

      Policies to adjust balance of payments disequilibria

  • 13. 
    International trade is similar to interregional trade in that both must overcome:
    • A. 

      Distance and space

    • B. 

      Trade restrictions

    • C. 

      Differences in currencies

    • D. 

      Differences in monetary systems

  • 14. 
    The opening or expansion of international trade usually affects all members of society:
    • A. 

      Positively

    • B. 

      Negatively

    • C. 

      Most positively but some negatively

    • D. 

      Most negatively but some positively

  • 15. 
    The most serious international economic problem is:
    • A. 

      The rise of trade protectionism in advanced countries

    • B. 

      Job losses arising from globalization in advanced countries

    • C. 

      Deep poverty in some developing countries.

    • D. 

      It benefits all people

  • 16. 
    The Mercantilists did not advocate:
    • A. 

      Free trade

    • B. 

      Stimulating the nation's exports

    • C. 

      Restricting the nations' imports

    • D. 

      The accumulation of gold by the nation

  • 17. 
    According to Adam Smith, international trade was based on:
    • A. 

      Absolute advantage

    • B. 

      Comparative advantage

    • C. 

      Both absolute and comparative advantage

    • D. 

      Neither absolute nor comparative advantage

  • 18. 
    What proportion of international trade is based on absolute advantage?
    • A. 

      All

    • B. 

      Most

    • C. 

      Some

    • D. 

      None

  • 19. 
    The commodity in which the nation has the smallest absolute disadvantage is the commodity of it’s:
    • A. 

      Absolute disadvantage

    • B. 

      Absolute advantage

    • C. 

      Comparative disadvantage

    • D. 

      Comparative advantage

  • 20. 
    If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation A has a comparative advantage in commodity X, then nation B must have:
    • A. 

      An absolute advantage in commodity Y

    • B. 

      An absolute disadvantage in commodity Y

    • C. 

      A comparative disadvantage in commodity Y

    • D. 

      A comparative advantage in commodity Y

  • 21. 
    If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input):
    • A. 

      Nation A has a comparative disadvantage in commodity X

    • B. 

      Nation B has a comparative disadvantage in commodity Y

    • C. 

      Nation A has a comparative advantage in commodity X

    • D. 

      Nation A has a comparative advantage in neither commodity

  • 22. 
      With reference to the statement in Question 21:
    • A. 

      Px/Py=1 in nation A

    • B. 

      Px/Py=3 in nation B

    • C. 

      Py/Px=1/3 in nation B

    • D. 

      All of the above

  • 23. 
    With reference to the statement in Question 21, if 3X is exchanged for 3Y:
    • A. 

      Nation A gains 2X

    • B. 

      Nation B gains 6Y

    • C. 

      Nation A gains 3Y

    • D. 

      Nation B gains 3Y

  • 24. 
    With reference to the statement of Question 21, the range of mutually beneficial trade between nation A and B is:
    • A. 

      3Y < 3X < 5Y

    • B. 

      5Y < 3X < 9Y

    • C. 

      3Y < 3X < 9Y

    • D. 

      1Y < 3X < 3Y

  • 25. 
    If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:
    • A. 

      There will be no trade between the two nations

    • B. 

      The relative price of X is the same in both nations

    • C. 

      The relative price of Y is the same in both nations

    • D. 

      All of the above