Scribd
Upload
30 views3 pages

Chapter 1 (Answers)

ECO320 CHAP1

Uploaded by

nam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
30 views3 pages

Chapter 1 (Answers)

ECO320 CHAP1

Uploaded by

nam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Multiple-Choice Questions for International Economics

by

Dr. Bob Carbaugh


Department of Economics
Central Washington University

Chapter 1: The International Economy and Globalization

1. A primary reason why nations conduct international trade is because:


a. Some nations prefer to produce one thing while others produce another
*b. Resources are not equally distributed to all trading nations
c. Trade enhances opportunities to accumulate profits
d. Interest rates are not identical in all trading nations

2. A main advantage of specialization results from:


*a. Economics of large scale production
b. The specializing country behaving as a monopoly
c. Smaller production runs resulting in lower unit costs.
d. High wages paid to foreign workers

3. International trade in goods and services is sometimes used as a substitute for all of the
following except:
a. International movements of capital.
b. International movements of labor.
c. International movements of technology
*d. Domestic production of different goods and services

4. If a nation has an open economy it means that the nation:


a. Allows private ownership of capital.
b. Has flexible exchange rates
c. Has fixed exchange rates
*d. Conducts trade with other countries

5. International trade forces domestic firms to become more competitive in terms of:
a. The introduction of new products
b. Product design and quality
c. Product price
*d. All of the above

6. The movement to free international trade is most likely to generate short-term unemployment in
which industries:
a. Industries in which there are neither imports nor exports
*b. Import-competing industries.
c. Industries that sell to domestic and foreign buyers
d. Industries that sell to only foreign buyers
7. International trade is based on the idea that:
a. Exports should exceed imports
b. Imports should exceed exports
c. Resources are more mobile internationally than are goods
*d. Resources are less mobile internationally than are goods

8. Arguments for free trade are sometimes disregarded by politicians because:


a. Maximizing domestic efficiency is not considered important
*b. Maximizing consumer welfare may not be a chief priority
c. There exist sound economic reasons for keeping one’s economy isolated from other
economies.
d. Economists tend to favor highly protected domestic markets

9. Increased foreign competition tend to


a. Intensify inflationary pressure at home
b. Induce falling output per worker-hour for domestic workers
*c. Place constraints on the wages of domestic workers
d. Increase profits of domestic import-competing industries

10. Free traders maintain that an open economy is advantageous in that it provides all of
the following except:
a. Increased competition for world producers
b. A wider selection of products for consumers
c. The utilization of the most efficient production methods
*d. Relatively high wages levels for all domestic workers

11. International trade tends to cause welfare losses to at least some groups in a country
*a. The less mobile the country’s resources
b. The more mobile the country’s resources
c. The lower the country’s initial living standard
d. The higher the country’s initial living standard

12. A feasible effect of international trade is that a (an):


*a. Monopoly in the home market becomes an oligopoly in the world market
b. Oligopoly in the home market becomes a monopoly in the world market
c. Purely competitive firm in the home market becomes an oligopolist
d. Purely competitive firm in the home market becomes a monopolist

13. International trade in goods and services tends to:


a. Increase all domestic costs and prices
b. Keep all domestic costs and prices at the same level
c. Lessen the amount of competition facing home manufacturers
*d. Increase the amount of competition facing home manufacturers

14. The real income of domestic producers and consumers can be increased by:
a. Technological progress, but not international trade
b. International trade, but not technological progress
*c. Technological progress and international trade
d. Neither technological progress nor international trade
15. Technological improvements are similar to international trade since they both:
a. Provide benefits for all producers and consumers
*b. Increase the nation’s aggregate income
c. Reduce unemployment for all domestic workers
d. Ensure that industries can operate at less than full capacity

16. A sudden shift from import tariffs to free trade may induce short-term unemployment in:
*a. Import-competing industries
b. Industries that are only exporters
c. Industries that sell domestically as well as export
d. Industries that neither import nor export

17. The most recent wave of globalization, which began in the 1980s, has emphasized
the outsourcing of:
*a. services and white-collar jobs
b. manufacturing and blue-collar jobs
c. natural resource extraction and mining jobs
d. agriculture and farming jobs

18. A country’s openness to international trade can be measured by the formula


a. Exports + Imports + GDP
b. Exports – Imports – GDP
*c. (Exports + Imports) / GDP
d. (Exports + Imports) X GDP

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy