Question 1

Following World War II,The U.S.:

Accepted Answer

A)   became less open
B)   negotiated reductions in trade barriers with other countries
C)   passed a number of protective tariffs
D)   concentrated on armament production

Question 2

____ is the ability of a firm/industry,under free and fair market conditions,to design,produce,and market goods and services that are better and/or cheaper than those of other firms/industries.

Accepted Answer

A)   Competitiveness
B)   Protectionism
C)   Comparative advantage
D)   Absolute advantage

Question 3

Multilateral trade negotiations have led to

Accepted Answer

A)   Continued trade liberalization
B)   Financial liberalization
C)   Increased investment
D)   All of the above

Question 4

The movement to free international trade is most likely to generate short-term unemployment in which industries?

Accepted Answer

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

Question 5

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

Accepted Answer

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

Question 6

Economic interdependence occurs through

Accepted Answer

A)   trade
B)   labor migratin
C)   capital flows
D)   all of these

Question 7

Regarding the applicability of free trade to cigarettes,it is correct to say:

Accepted Answer

A)   the rules of free trade apply to cigarettes
B)   the rules of free trade should not apply to cigarettes
C)   a and b are the topic of current debate
D)   ​there are special rules applying to cigarettes world-wide

Question 8

What are the challenges of the international trading system?

Accepted Answer

Among the challenges that the ...

Question 9

With globalization and import competition,U.S.prices have generally:

Accepted Answer

A)   increased
B)   decreased
C)   remained stable
D)   all of these at various times

Question 10

In the long run,competitiveness depends on an industry's natural resources,its stock of machinery and equipment,and the skill of its workers in creating goods that people want to buy.

Accepted Answer

A) True 
 B)False

Question 11

Increased foreign competition tends to:

Accepted Answer

A)   Intensify inflationary pressures 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

Question 12

Increased foreign competition tends to increase profits of domestic import-competing companies.

Accepted Answer

A) True 
 B)False

Question 13

Most of the world's population now lives in countries that are:

Accepted Answer

A)   integrated into world markets
B)   becoming integrated into world markets
C)   near poverty
D)   a and b

Question 14

Producing goods for export produces:

Accepted Answer

A)   jobs
B)   income
C)   tariffs
D)   a and b

Question 15

International trade benefits:

Accepted Answer

A)   all workers
B)   most workers
C)   many workers
D)   None of these is correct

Question 16

Free traders maintain that an open economy is advantageous in that it provides all of the following except:

Accepted Answer

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 wage levels for all domestic workers

Question 17

A main advantage of specialization results from:

Accepted Answer

A)   Economies 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

Question 18

International trade in goods and services is sometimes used as a substitute for all of the following except:

Accepted Answer

A)   International movements of capital
B)   International movements of labor
C)   Domestic production of the same goods and services
D)   Domestic production of different goods and services

Question 19

The United States exports a larger percentage of its gross domestic product than Japan,Germany,and Canada.

Accepted Answer

A) True 
 B)False

Question 20

Current trade rules permit countries to enact measures to protect the health and safety of their citizens as long as all goods are treated equally,the tobacco companies argue.

Accepted Answer

A) True 
 B)False

Exam 1: The International Economy and Globalization

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

Correct AnswerverifiedShow Answer

Following World War II,The U.S.:

Correct AnswerverifiedShow Answer

Producing goods for export produces:

Correct AnswerverifiedShow Answer

The movement to free international trade is most likely to generate short-term unemployment in which industries?

Correct AnswerverifiedShow Answer

In the long run,competitiveness depends on an industry's natural resources,its stock of machinery and equipment,and the skill of its workers in creating goods that people want to buy.

Correct AnswerverifiedShow Answer

____ is the ability of a firm/industry,under free and fair market conditions,to design,produce,and market goods and services that are better and/or cheaper than those of other firms/industries.

Correct AnswerverifiedShow Answer

Current trade rules permit countries to enact measures to protect the health and safety of their citizens as long as all goods are treated equally,the tobacco companies argue.

Correct AnswerverifiedShow Answer

The United States exports a larger percentage of its gross domestic product than Japan,Germany,and Canada.

Correct AnswerverifiedShow Answer

Free traders maintain that an open economy is advantageous in that it provides all of the following except:

Correct AnswerverifiedShow Answer

With globalization and import competition,U.S.prices have generally:

Correct AnswerverifiedShow Answer

Increased foreign competition tends to:

Correct AnswerverifiedShow Answer

Multilateral trade negotiations have led to

Correct AnswerverifiedShow Answer

Increased foreign competition tends to increase profits of domestic import-competing companies.

Correct AnswerverifiedShow Answer

International trade benefits:

Correct AnswerverifiedShow Answer

Economic interdependence occurs through

Correct AnswerverifiedShow Answer

A main advantage of specialization results from:

Correct AnswerverifiedShow Answer

What are the challenges of the international trading system?

Correct AnswerverifiedAmong the challenges that the ...View AnswerShow Answer

Regarding the applicability of free trade to cigarettes,it is correct to say:

Correct AnswerverifiedShow Answer

International trade in goods and services is sometimes used as a substitute for all of the following except:

Correct AnswerverifiedShow Answer

Most of the world's population now lives in countries that are:

Correct AnswerverifiedShow Answer

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Among the challenges that the ...
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