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| 1 | |
Illegal immigration of workers is an example of an international resource flow. |
| | A) | True |
| | B) | False |
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| 2 | |
Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
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Refer to the tables. The range of the terms of trade that would be acceptable to both countries is: |
| | A) | between 1 unit of X for 1 unit of Y and 1 unit of X for 2 units of Y |
| | B) | between 4 units of X for 1 unit of Y and 2 units of X for 1 unit of Y |
| | C) | between 1 unit of X for 2 units of Y and 1 unit of X for 4 units of Y |
| | D) | between 2 units of X for 1 unit of Y and 1 unit of X for 1 units of Y |
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| 3 | |
The United States: |
| | A) | leads the world in the percentage of its GDP that is traded |
| | B) | leads the world in the dollar volume of exports and imports |
| | C) | exports more than it imports |
| | D) | is importing a smaller percentage of its GDP now compared with 40 years ago |
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| 4 | |
Which of the following best illustrates an international resource flow? |
| | A) | A U.S. firm builds an auto production facility in Canada |
| | B) | A Canadian firm buys U.S. Treasury bonds with its excess cash |
| | C) | A U.S. firm purchases the right to distribute and market a new anti-cancer drug developed in India |
| | D) | A U.S. trucking company picks up and delivers goods produced in a Mexican maquiladora production facility |
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| 5 | |
Great Britain and Denmark are members of the Euro Zone. |
| | A) | True |
| | B) | False |
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| 6 | |
Answer the next question(s) on the basis of the following table that indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
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Refer to the above table. The equilibrium exchange rate in this market is: |
| | A) | 8 luta for one dollar |
| | B) | 6 luta for one dollar |
| | C) | 0.167 luta for one dollar |
| | D) | 0.125 luta for one dollar |
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| 7 | |
In terms of absolute dollar volume, which of the following is not among the top three leading export nations? |
| | A) | Mexico |
| | B) | United States |
| | C) | Germany |
| | D) | Japan |
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| 8 | |
Over the past several years, the volume of world trade has: |
| | A) | decreased because of increased government regulation of trade through tariffs and quotas |
| | B) | decreased because of the decline in incomes brought on by global recession |
| | C) | increased because of increased government regulation of trade through tariffs and quotas |
| | D) | increased because of improvements in communications and transportation |
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| 9 | |
Which one of the following do economists generally agree was a contributing cause of the Great Depression? |
| | A) | Kennedy Round of GATT |
| | B) | Reciprocal Trade Agreements Act of 1934 |
| | C) | Doha Round of WTO |
| | D) | Smoot-Hawley Tariff Act of 1930 |
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| 10 | |
U.S. exports: |
| | A) | average 4-6 percent of GDP, as do imports |
| | B) | average 18-20 percent of GDP, while imports average 10-12 percent |
| | C) | average 10-12 percent of GDP, while imports average 15-17 percent |
| | D) | average 1-2 percent of GDP, while imports average 4-6 percent |
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