International Economics Review

What is the total value of all the goods and services produced within a country in a given year called?

• Deficit Spending

• National Debt

• Macroeconomics

• Gross Domestic Product

In order to protect local food processors and production from competitively priced imports, Saudi Arabia institutes a maximum 40% charge on imported food. Currently, a 40% import duty rate applies to fresh, dried/processed dates and 25% on wheat flour. What kind of trade barrier is being described here?

• embargo

• quota

• subsidy

• tariff

Which country did not allow rice to be imported until 1994?

• Japan

• North Korea

• China

• The United States

What is the best description of the Indian government's requirement for a special import license for motorcycles?

• a tariff

• an import quota

• a trade barrier

• an export subsidy

Which of the following companies has its headquarters in Atlanta?

• Coca-Cola

• Microsoft

• Apple

• Amazon

In 2012, what was the total value of Georgia's exports?

• $25.9 billion

• $35.9 billion

• $45.9 billion

• $55.9 billion

Which of the following is home to the world's busiest airport?

• New York

• Los Angeles

• Georgia

• Texas

What happens to a country's imports and exports when its currency has a high value?

• Imports are less expensive, and exports are less expensive.

• Imports are more expensive, and exports are more expensive.

• Imports are less expensive, and exports are more expensive.

• Imports are more expensive, and exports are less expensive.

________ is the amount of domestic currency compared to an equivalent amount of foreign currency.

• The Euro

• The US Dollar

• The Yen

• Exchange Rate

The price of a Japanese-made pen in Japan is ¥500. If at the current exchange rate a German buyer can buy the pen in Japan for €100, then which of the following is the exchange rate between the two currencies?

• €5/¥

• €500/¥

• ¥0.2/€

• ¥5/€

• ¥20/€

Answer explanation

€100 can buy a ¥500 pen; therefore, the exchange rate can be expressed as ¥500/€100 =¥5/€1, i.e. 5 yen per 1 euro (¥5/€), or the exchange rate can be expressed as €500/ ¥100 =€5/¥1, i.e. 0.2 euro per 1 yen (€0.2/¥).