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| 1 | |
Which of the following best illustrates an international information flow? |
| | A) | The European aircraft consortium, Airbus, receives a report on the technical specifications for a new part from one of its U.S. suppliers |
| | B) | An Irish leasing company purchases a new Boeing aircraft |
| | C) | Its chief financial officer directs the Boeing Company to purchase German government bonds as a way of hedging domestic investments |
| | D) | The Boeing Company constructs a new production facility in China |
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| 2 | |
The U.S. is almost entirely dependent on other countries for: |
| | A) | rice |
| | B) | coal |
| | C) | tea |
| | D) | semiconductors |
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| 3 | |
The European Union: |
| | A) | consists of all countries that have adopted the euro as official currency |
| | B) | is a trading bloc of Western European countries |
| | C) | has imposed significant trade barriers among its member countries |
| | D) | has improved the prosperity of its members, reducing their demand for imports from the U.S. |
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| 4 | |
The "Uruguay Round" accomplished all of the following except: |
| | A) | creation of the WTO |
| | B) | creation of the GATT |
| | C) | reduction of overall tariffs |
| | D) | liberalized government rules on trade in services |
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| 5 | |
A government agency requires that all agricultural goods entering the country undergo an unduly long inspection process to assure product quality. This is an example of: |
| | A) | an export subsidy |
| | B) | a tariff |
| | C) | a nontariff barrier |
| | D) | a quota |
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| 6 | |
Compared to any other nation, the United States' exports and imports: |
| | A) | have grown at a slower rate |
| | B) | are larger both in absolute terms and relative to GDP |
| | C) | are larger in absolute terms |
| | D) | have grown at a faster rate |
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| 7 | |
Which of the following will tend to increase U.S. exports and reduce Mexican exports? |
| | A) | A decrease in the dollar price of the peso |
| | B) | An appreciation of the dollar relative to the peso |
| | C) | A depreciation of the peso relative to the dollar |
| | D) | An increase in the dollar price of the peso |
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| 8 | |
Which of the following is not currently a member of the Euro Zone? |
| | A) | France |
| | B) | Sweden |
| | C) | Austria |
| | D) | Finland |
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| 9 | |
Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
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In Beta, the domestic opportunity cost of one unit of good X is: |
| | A) | 1 unit of Y |
| | B) | 1.5 units of Y |
| | C) | 2 units of X |
| | D) | 3 units of Y |
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| 10 | |
Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
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According to the concept of comparative advantage: |
| | A) | Alpha should specialize in the production of X; Beta in the production of Y |
| | B) | Alpha should produce some of both goods X and Y |
| | C) | Beta should produce some of both goods X and Y |
| | D) | Beta should specialize in the production of X; Alpha in the production of Y |
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