WorksheetsInternational Economics_Chap01
Total questions: 20
Worksheet time: 30mins
An important insight of international economics is that when countries sell goods and services to each other,
the exchange is almost always mutually beneficial.
one country always benefits at the expense of the other.
it only benefits the low wage country.
it only benefits the high wage country.
The gravity model of international trade predicts that trade between two nations is larger when
the larger of two nations
the closer the nations
the more open are the two nations
all of above
Which of the following statements is TRUE?
Trade is mutually beneficial when countries exchange goods and services.
Trade is harmful if large disparities exist between countries in productivity.
Trade is harmful if large disparities exist between countries in wages.
Trading with less-advanced, lower-wage countries will drag down a country's standard of living.
which of followings is not the subject matter of international finance?
the foreign exchange markets
the balance of payments
basics and gains from trade
policies to adjust balance of payment disequilibria
International economics deals with:
the flows of goods, services, payments among nations
policies directed at regulating the flows of goods, services, payments among nations
the effects of policies on welfare of the nations
all of above
Who sells what to whom...
is not a valid concern of international economics.
is not considered important for government foreign trade policy since such decisions are made in the private competitive market.
is determined by political rather than economic factors.
has been a major preoccupation of international economics.
International economics can be divided into two broad sub-fields: .....
macro and micro.
developed and less developed.
international trade and international money.
monetary and barter.
International trade analysis focuses on....
the real transactions that involve a physical movement of goods or a tangible commitment of economic resources in the international economy.
the monetary side of the international economy.
the financial transactions such as foreign purchases of U.S. dollars.
the devaluation of currencies of the international economy.
International monetary analysis focuses on ...
the real side of the international economy.
the international investment side of the international economy.
the issues of international cooperation between Central Banks.
the monetary side of the international economy, such as currency exchange.
According to Gravity model, we expect the United States to trade less with:
Canada, Mexico
Japan, China
Bangladesh, Nepal
Germany
A rough measure of the economic relationship among nations, or their interdependence, is
GDP
GDP per capita
ratio of imports and exports to GDP
ratio of imports and exports to GDP/capita
The gravity model offers a logical explanation for the fact that...
trade between Asia and the U.S. has grown faster than NAFTA trade.
trade in services has grown faster than trade in goods.
trade in manufactures has grown faster than in agricultural products.
Intra-European Union trade exceeds international trade by the European Union.
The gravity model suggests that over time...
trade between all countries will increase.
the value of trade between two countries will be proportional to the product of the two countries' GDP.
world trade will eventually be swallowed by a black hole.
trade between neighboring countries will increase.
According to the Gravity Model, the reason why the United States trades more heavily with Germany, the United Kingdom, and France than with other countries in Europe is because of ...
their ties to the European Union.
mutual rights and responsibilities.
their currencies and trade policies.
the size of their economies.
Trade between British Columbia and a Canada province is likely much larger than trade with an equally distant U.S. state because of ...
negative effects of the borders.
size of local economy.
population.
religion.
In 2017, the biggest share of world trade is in
manufactured goods.
fuels and mining products.
agricultural products.
services.
Over the past 50 years, developing countries' exports have seen a(n) ________ in manufactured goods and a(n)_______ in agricultural products.
decrease; increase
increase; decrease
increase; increase
decrease; decrease
In the present, most of the exports from China are ....
primary products including agricultural.
technology intensive products.
manufactured goods.
services.
When a service previously done within a country is shifted to a foreign location, the change is known as ...
location shifting.
service outreaching.
service outsourcing.
global transferring.
What caused the ratio of world exports to world GDP to fall sharply before World War I and not return to 1913 level until 1970s?
Wars and protectionism.
Natural disasters.
Loss of interest among trading nations.
Invention of railroad and steamship.
