Global Economy Midterm

25 Questions | By Globaleconomics | Updated: Dec 14, 2012 | Attempts: 160

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What are the fourskill sets economists predict will be most valuable in the future globaleconomy? ble T Why do nations trade? What is scarcity? What is the law ofsupply and demand?

Questions and Answers

1.

Most trading on exchange rate markets is related to _______________ and ______________.
- A.
  
  International exchange and management of the risks of possible future changes in exchange rates.
- B.
  
  International investments and management of the opportunities available with possible future changes in exchange rates.
- C.
  
  Domestic investments and management of the risks of possible future changes in exchange rates.
- D.
  
  International investments and management of the risks of possible future changes in exchange rates.
Correct Answer
A. International exchange and management of the risks of possible future changes in exchange rates.
2.

The 3 Factors are New Global ___________, National ____________ to Globalization, and Changes in _________.1.2.3.

Correct Answer
blankk
3.

A high inflation rate means that your currency buys less.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True
4.

There are two main ways to deal with floating exchange rate risks. What are they? (Select two)
- A.
  
  Limit the number of transactions you do that involve long term commitments that would reduce the risks to some extent
- B.
  
  Increase the number of transactions you do that involve long term commitments that would reduce the risks to some extent
- C.
  
  Use financial contracts that would hedge some of the risks with floating exchange rates
- D.
  
  Use fixed exchange rates that would hedge some of the risks with floating exchange rates
Correct Answer(s)
A. Limit the number of transactions you do that involve long term commitments that would reduce the risks to some extent
C. Use financial contracts that would hedge some of the risks with floating exchange rates
5.

The overwhelming majority of trades in 2007 were the exchange of Euro's.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False
6.

What is the main difference(s) between microeconomics and macroeconomics?
7.

Please define 2 economic indicators.
8.

GATT stands for ____________________.
- A.
  
  General Agreement on Tariffs and Tencent
- B.
  
  General Arithmetic on Tariffs and Trade
- C.
  
  General Agreement on Tariffs and Trade
- D.
  
  General Agreement on Terrible Trades
Correct Answer
C. General Agreement on Tariffs and Trade
9.

All of the following are skills sets economists predict will be most valuable in the future global economy except?
- A.
  
  Sales
- B.
  
  Bureaucratic
- C.
  
  Investment
- D.
  
  Service
- E.
  
  Computer
Correct Answer
C. Investment
10.

Please give an example of the law of supply and demand.
11.

__________ is the problem of infinite human needs and wants, in a world of finite resources.

Correct Answer
scarcity
12.

Many countries in the late 1940s realized that the reductions in world trade in wartime and during the Depression had hurt their economies
- A.
  
  True
- B.
  
  False
Correct Answer
A. True
13.

An example of a change that significantly reduced the cost of transportation of goods is_______________.
- A.
  
  Health Regulations
- B.
  
  Barriers to trade
- C.
  
  Guns
- D.
  
  Containerization
Correct Answer
D. Containerization
14.

The countries of the world could not and did not want to drop the trade barrier’s of the 1930’s that pushed countries apart such as heavy tariffs.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False
15.

All of the following are examples of the effects of globalization except
- A.
  
  A department store put's items on lay away
- B.
  
  A McDonald's open up in India
- C.
  
  An American fashion designer uses cultural ideas from Chinese pop to make clothes
- D.
  
  It is less costly to ship goods from China than to make them in Europe
Correct Answer
A. A department store put's items on lay away
16.

The US and other major currencies of the world use _______ exchange rates.
- A.
  
  Fixed
- B.
  
  Soft-Pegged
- C.
  
  Self Regulated
- D.
  
  Floating
Correct Answer
D. Floating
17.

A strong currency means you can __________________________________.
- A.
  
  Buy less imports so imports decrease but the foreign currency that exporters earn is worth more so exports tend to rise.
- B.
  
  Buy more imports so imports rise but the foreign currency that exporters earn is worthless so exports tend to fall.
- C.
  
  Buy less imports so imports fall but the foreign currency that exporters earn is worthless so exports tend to fall.
- D.
  
  Buy more imports so imports rise but the foreign currency that exporters earn is worth more so exports tend to rise.
Correct Answer
B. Buy more imports so imports rise but the foreign currency that exporters earn is worthless so exports tend to fall.
18.

A common issue with China in the first decade of the 21st century is that china has fixed its exchange rate at a fairly low level which is helping its exports but also leading to humungous and unsustainable large trade surpluses.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False
19.

You can always keep the foreign exchange value of your currency rising as long as you are willing to keep accumulating foreign exchange reserves.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False
20.

What is an economy?
- A.
  
  The factors of production, exchange, distribution, and consumption of goods and services of a country or other area.
- B.
  
  The factors of production, exchange, distribution, and consumption in a country or other area.
- C.
  
  The realized social system of production, exchange, distribution, and consumption of goods and services of a country or other area.
- D.
  
  The realized political system of production, exchange, distribution, and consumption of goods and services of a country or other area.
Correct Answer
C. The realized social system of production, exchange, distribution, and consumption of goods and services of a country or other area.
21.

GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).
- A.
  
  True
- B.
  
  False
Correct Answer
A. True
22.

Economists typically use “purchasing power parity” (PPP) exchange rates, which seek to measure the same _________________________________.

Correct Answer
purchasing power between two or more countries
23.

GDP =
- A.
  
  GDP = corporate spending+ government investment + government spending + (exports − imports)
- B.
  
  GDP = consumption + gross investment + government spending
- C.
  
  GDP = consumption + government investment + government spending +
- D.
  
  GDP = consumption + gross investment + government spending + (exports − imports)
Correct Answer
D. GDP = consumption + gross investment + government spending + (exports − imports)
24.

Why do nations trade?

Correct Answer
scarce resources
25.

You have 100 points to distribute amongst your team members and yourself. List their names and yours below in Pin Yin along with the amount of points you would distribute to each person based on the quality and level of their participation.

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Current Version
Dec 14, 2012

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Nov 21, 2008

Quiz Created by
Globaleconomics

Global Economy Midterm

Most trading on exchange rate markets is related to _ and .

The 3 Factors are New Global ___, National to Globalization, and Changes in _.1.2.3.

A high inflation rate means that your currency buys less.

There are two main ways to deal with floating exchange rate risks. What are they? (Select two)

The overwhelming majority of trades in 2007 were the exchange of Euro's.

What is the main difference(s) between microeconomics and macroeconomics?

Please define 2 economic indicators.

GATT stands for ____________________.

All of the following are skills sets economists predict will be most valuable in the future global economy except?

Please give an example of the law of supply and demand.

__________ is the problem of infinite human needs and wants, in a world of finite resources.

Many countries in the late 1940s realized that the reductions in world trade in wartime and during the Depression had hurt their economies

An example of a change that significantly reduced the cost of transportation of goods is_______________.

The countries of the world could not and did not want to drop the trade barrier’s of the 1930’s that pushed countries apart such as heavy tariffs.

All of the following are examples of the effects of globalization except

The US and other major currencies of the world use _______ exchange rates.

A strong currency means you can __________________________________.

A common issue with China in the first decade of the 21st century is that china has fixed its exchange rate at a fairly low level which is helping its exports but also leading to humungous and unsustainable large trade surpluses.

You can always keep the foreign exchange value of your currency rising as long as you are willing to keep accumulating foreign exchange reserves.

What is an economy?

GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).

Economists typically use “purchasing power parity” (PPP) exchange rates, which seek to measure the same _________________________________.

GDP =

Why do nations trade?

You have 100 points to distribute amongst your team members and yourself. List their names and yours below in Pin Yin along with the amount of points you would distribute to each person based on the quality and level of their participation.

Global Economy Midterm

Most trading on exchange rate markets is related to _______________ and ______________.

The 3 Factors are New Global ___________, National ____________ to Globalization, and Changes in _________.1.2.3.

A high inflation rate means that your currency buys less.

There are two main ways to deal with floating exchange rate risks. What are they? (Select two)

The overwhelming majority of trades in 2007 were the exchange of Euro's.

What is the main difference(s) between microeconomics and macroeconomics?

Please define 2 economic indicators.

GATT stands for ____________________.

All of the following are skills sets economists predict will be most valuable in the future global economy except?

Please give an example of the law of supply and demand.

__________ is the problem of infinite human needs and wants, in a world of finite resources.

Many countries in the late 1940s realized that the reductions in world trade in wartime and during the Depression had hurt their economies

An example of a change that significantly reduced the cost of transportation of goods is_______________.

The countries of the world could not and did not want to drop the trade barrier’s of the 1930’s that pushed countries apart such as heavy tariffs.

All of the following are examples of the effects of globalization except

The US and other major currencies of the world use _______ exchange rates.

A strong currency means you can __________________________________.

A common issue with China in the first decade of the 21st century is that china has fixed its exchange rate at a fairly low level which is helping its exports but also leading to humungous and unsustainable large trade surpluses.

You can always keep the foreign exchange value of your currency rising as long as you are willing to keep accumulating foreign exchange reserves.

What is an economy?

GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).

Economists typically use “purchasing power parity” (PPP) exchange rates, which seek to measure the same _________________________________.

GDP =

Why do nations trade?

You have 100 points to distribute amongst your team members and yourself. List their names and yours below in Pin Yin along with the amount of points you would distribute to each person based on the quality and level of their participation.

Most trading on exchange rate markets is related to _ and .

The 3 Factors are New Global ___, National to Globalization, and Changes in _.1.2.3.