International Economics - The Final Quiz - Part 1

9 Questions | Total Attempts: 431

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Economics Quizzes & Trivia

Quiz set for the course of professor Tajoli, part 1: globalization, balance of payments. May your balance of trade be always equal to zero.


Questions and Answers
  • 1. 
    Which of the following country will probably have a LOW degree of openness?
    • A. 

      A middle-east oil exporter.

    • B. 

      A relatively small country with a strong specialization in state-of-the-art microchips.

    • C. 

      A rich country with high degree of productivity in different industries.

    • D. 

      A relatively small country that export high-quality agricultural product

    • E. 

      Degree of openness of these countries are not clear.

  • 2. 
    Poor countries tend to have high openness.
    • A. 

      True

    • B. 

      False

  • 3. 
    The exchange ratio (nominal) between the Colombian Peso and the US dollar (measured as Peso/$) in a certain year doubles its value; the average income of the Colombian inhabitants however does not show particular modifications, and so do their consumption possibilities. Given that Colombia import from US a negligible percentage of its total import, what is the effect on the Colombian GDP calculated in US dollar with the purchase power parity method?
    • A. 

      It double.

    • B. 

      It decreases.

    • C. 

      It remains constant.

    • D. 

      It increase but not double.

    • E. 

      There are not enough data to answer.

  • 4. 
    The so-called total resources available in the country are formalized (referring to the classical GDP Equation) as:
    • A. 

      GDP

    • B. 

      GDP + IMP

    • C. 

      GDP - EXP

    • D. 

      GDP + (IMP - EXP)

    • E. 

      C + I + G

  • 5. 
    An increase in investments by the firms of a country can be, in the short term, the cause of a trade surplus.
    • A. 

      True

    • B. 

      False

  • 6. 
    Put this transaction in the right part of the balance of payment: A. Aid received from foreign country due to natural disaster. B. Income from foreign investments in production activities. C. Trade Balance. D. Outward FDI.
    • A. 

      Current account: C, D; Financial and capital: A, B.

    • B. 

      Current account: B, C; Financial and capital: A, D.

    • C. 

      Current account: C; Financial and capital: A, B, D.

    • D. 

      Current account: A, B; Financial and capital: C, D.

  • 7. 
    Which of these goods must NOT be included in the computation of the Gross National Product of Ireland
    • A. 

      Beer produced by a not-listed company owned by an Ireland family that employs workers of different nationalities.

    • B. 

      Beer company owned by Ireland citizens that owns no asset in Ireland but two production facilities in India.

    • C. 

      Beer company that employs only Ireland citizens and sells only in Ireland but is owned by an US firm.

    • D. 

      The production of these three alternatives are all included in the GNP.

  • 8. 
    If in a given country citizens do not own foreign firm, GNP and GDP coincide.
    • A. 

      True

    • B. 

      False

  • 9. 
    Developing countries tend to have a GNP ______ the GDP, respect to the developed ones.
    • A. 

      Higher than

    • B. 

      Equal to

    • C. 

      Lower than

    • D. 

      There isn't a clear difference in GDP/GNP between developed and developing countries.

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