Thẻ ghi nhớ: ECO201 - NEW SU26 | Quizlet

The most vocal political pressure for tariffs is generally made by (Soạn bởi Thủy Tiên)

A. producers lobbying for import tariffs.

B. consumers lobbying for export tariffs.

C. consumers lobbying for import tariffs.

D. consumers lobbying for lower import tariffs.

E. producers lobbying for export tariffs.

A

Average national income per-capita in the riches economies is _______ times that of the average in the

poorest developing economies.

A. 115

B. 95

C. 73

D. 44

Ε. 57

B

Which of the following are characteristic of a developing country?

A. extensive embrace of free trade policies

B. low inflation

C. high national savings

D. rampant tax evasion and underground economic activity

E. strong credit institutions

D

Why does the LL schedule have a negative slope?

A. The economic stability loss from pegging to the area's currencies rises as the degree of economic interdependence rises.

B. The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence rises.

C. The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence falls.

D. The economic stability loss from pegging to the area's currencies rises as the degree of economic activity increases.

E. The economic stability loss from pegging to the area's currencies is constant, even as the degree of economic activity increases.

B

In the U.S., banks

A. may not be forced by bank examiner to adjust their balance sheets by writing off loans the examiner thinks will not be repaid.

B. may be forced by bank examiner to adjust their balance sheets by writing off loans the examiner thinks will not be repaid.

C. may be forced by bank examiner to adjust their balance sheets by writing off loans the examiner thinks will not be repaid only if the Fed and the FDIC examiners agree.

D. may be forced by bank examiner to adjust their balance sheets by writing off loans the examiner thinks will not be repaid only if the Fed and the Office of the Comptroller of the Currency examiners agree.

E. may be forced by bank examiner to adjust their balance sheets by paying off loans the examiner thinks will not be repaid.

B

What is "too big to fail" policy?

A. It is a government's policy to protect big banks when they get into trouble because their failures may set off

a chain reaction that throws the entire financial system into crisis.

B. It is a government's policy to prevent small and medium sized banks from becoming too big to get into trouble.

C. It is a government's policy to make banks become more interconnected so that their creditors can be fully protected.

D. It is a government's policy to avoid a vicious circle of moral hazard to stabilize the financial system.

A

How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.80 dollars per British pound?

A. 10 British pounds

B. 25 British pounds

C. 20 British pounds

D. 30 British pounds

E. 40 British pounds

B

The market in which households, firms, and financial institutions buy and sell foreign currencies to make international payments is called the

A. foreign exchange market.

B. currency market.

C. money market.

D. international market

E. trading market.

A

What is the impact of agricultural subsidies in rich countries on poor countries?

A. They harm farmers in poor countries by lowering world prices.

B. They benefit farmers in poor countries by increasing world prices.

C. They have no impact on farmers in poor countries.

D. They only affect consumers in rich countries.

A

What happens to the price in the home market when a tariff is imposed?

A. The price falls.

B. The price remains the same.

C. The price fluctuates randomly.

D. The price rises.

D

International trade reduces the risk by allowing both parties to trade to divide their wealth among a wide spectrum of assets. This is described as

A. portfolio diversification.

B. portfolio unification.

C. risk aversion.

D. asset swap.

A

Which of the following statements about the central bank is TRUE?

A. Only the central bank may hold foreign reserves and intervene officially in exchange markets.

B. Central banks have little power to affect macroeconomic conditions-

C. Today, central banks' reserves consist largely of gold.

D. The Federal Reserve holds only a small level of official reserve assets other than gold.

E. Central banks never inject money into the economy-

A

What is the effect of a tariff on a small country?

A. The price in the home market rises by the full amount of the tariff.

B. The price in the home market falls.

C. The price in the foreign market rises-

D. The price in the foreign market remains constant.

A

During the period from 1978-2019, the difference between annual inflation rates of EU countries and the German inflation rate

A. grew at an accelerating rate.

B. remained fairly constant.

C. largely disappeared.

D. went through periods of hyperinflation.

E. trended upward at a declining rate.

C

If a developing country institutes a currency board, it relinquishes control over having

A. monetary policy autonomy.

B. exchange rate stability.

C. freedom of capital movement.

D. freedom of labor movement.

E. all of its funds.

A

A bank faced with a large and sudden loss of deposits is likely to shut down despite a fundamentally sound balance sheet. Why could this be?

A. Banks have accountants that are too optimistic.

B. Banks purposely lie about their balance sheets in order to attract more clients.

C. Many bank assets are illiquid and cannot be sold quickly to meet deposit obligations without substantial loss to the bank.

D. Many banks operate on a budget that exceeds their actual reserves.

E. Many banks will shut down to preserve their interest profits-

C

In the instances where a loan has been issued under certain terms and has to be repaid, what happens when the borrower does not uphold these stipulations?

A. call

B. option

C. payment

D. default

E. fraud

D

The balance of payments has become a central issue for the United States because

A. when the balance of payments is not balanced, society is unbalanced.

B. the US. economy cannot grow when the balance of payments is in deficit.

C. the US. once ran a large trade surplus of about $40 billion.

D. the US. has run huge trade deficits in every year since 1982.

E. the US. never experienced a surplus in its balance of payments.

D

Besides world trade growth, what can explain the growth of international banking since the 1960s?

A. war in the Middle East

B. government focus on banking regulation

C. an increase in world travel

D. the emergence of developing countries like China

E. desire of depositors to hold currencies outside the jurisdiction of the countries that issue them

E

What is the collective action problem in trade policy?

A. The tendency for small groups with large losses to advocate for protectionism.

B. The difficulty in organizing large groups to advocate for free trade.

C. The challenge of negotiating trade agreements.

D. The problem of enforcing trade policies.

B

In April 2009, Financial Stability Board was established to

A. monitor the global financial system and make recommendations for global policy coordination and reform.

B. implement Base lll recommendations.

C. regulate systemically important nonbank financial institutions.

D. eliminate the problem of "too big to fail."

A

Each commodity super cycle since the 19th century usually lasted

A. about 30 to 40 years.

B. about 20 to 30 years.

C. about 10 to 20 years.

D. about 5 to 10 years.

A

In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?

A. a shift in strategy that emphasized exports rather than imports

B. an increase in wages

C. an increase in the labor force

D. an increase in the money supply

E. an emphasis on education, leading to a highly productive labor force

A

The excess supply curve of a product we (H) import from foreign countries (F) increases as

A. excess supply of country F increases.

B. Excess supply of country H increases.

C. excess demand of country H increases.

D. excess supply of country F decreases.

E. excess demand of country F increases.

A

The domestic market failure argument is a particular case of the theory of

A. the second best

B. the efficiency case for free trade.

C. the third best

D. the sufficing principle.

E. the optimum, or first-best.

A

How would you define a currency board?

A. the process by which non-pegged interest rates are allowed to fluctuate

B. the stockpiling of international reserves by developing countries

C. using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone

D. a constraint placed on monetary policy

E. The monetary base is backed entirely by foreign currency and the central bank holds no domestic assets.

E

What is one of the main arguments for free trade?

A. It allows resources to be allocated most efficiently.

B. It increases government revenue.

C. It decreases competition.

D. It limits economies of scale.

A

In 2019, about

A. 4.3 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.

B. 16.8 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.

C. 32.3 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.

D. 39 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.

E. 88.3 percent of foreign exchange transactions involved exchanges of foreign currencies for U.S. dollars.

E

Which one of the following statements is FALSE? (Soạn bởi Thủy Tiên)

A. The United States had accumulated substantial foreign wealth by the early 1980s.

B. The 1980s witnessed a sustained current account deficit of proportions unprecedented in the twentieth century.

C. In 1989, the country became a net debtor to foreigners for the first time since World War I.

D. U.S. foreign debt has continued to grow and now stands at 50 percent of GNP at the start of 2020.

E. The U.S. foreign debt was paid off in the 1990s, allowing the U.S. to attain a current account surplus. However, the deficit has returned in recent years.

E

The gravity model explains why

A. countries with oil reserves tend to export oil.

B. capital rich countries export capital intensive products.

C. European countries rely most often on natural resources.

D. intra-industry trade is relatively more important than other forms of trade between neighboring countries.

E. trade between Sweden and Germany exceeds that between Sweden and Spain.

E

Which one of the following statements is TRUE for Norway, a non-euro country?

A. Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

B. Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

C. Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows.

D. Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows.

E. Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.

E

Approximately what percent of all world production of goods and services is exported to other countries?

A. 30%

B. 50%

C. 90%

D. 10%

E. 100%

A

An export subsidy will cause the terms of trade of the ______ country to ______ and will ________ the country.

A. importing; suffer; benefit

B. importing; improve; harm

C. exporting; suffer; harm

D. importing; suffer; harm

E. exporting; improve; benefit

C

Trade theory suggests that Japan would gain from a subsidy the United States provides its grain farmers if the gains to Japanese consumers of wheat products more than offsets the losses to Japanese wheat farmers. This would occur as long as Japan

A. has a comparative advantage in wheat.

B. has an absolute advantage in producing wheat.

C. is a net importer in bilateral trade flows with the United States.

D. is a net importer of wheat.

E. is involved in intra-industry trade with the United States.

D

Which of the following statements is TRUE?

A. Bank failures inflict serious financial harm on individual depositors.

B. Bank failures do not inflict serious financial harm on individual depositors.

C. Bank failures inflict not only serious financial harm on individual depositors, but also harm the macroeconomic stability of the economy.

D. Bank failures inflict serious financial harm on individual depositors, but fortunately do not harm the macroeconomic stability of the economy.

E. Bank failures only inflict serious financial harm on the macroeconomic stability of the economy.

C

How does an import quota affect the price of the import?

A. It lowers the price.

B. It keeps the price constant.

C. It raises the price.

D. It has no effect on the price.

C

The largest trading of foreign exchange occurs in

A. New York.

B. London.

C. Tokyo.

D. Frankfurt.

E. Singapore.

B

Which of the following statements is TRUE?

A. Events in developing countries have a significant impact on welfare and policies in more advanced economies.

B. Events in developing countries have an insignificant impact on welfare and policies in more advanced economies.

C. Events in developing countries have no impact on welfare and policies in more advanced economies.

D. Events in developing countries have a global impact on welfare and policies in all countries including closed economies.

A

What is the impact of an export subsidy on the exporting country?

A. It increases consumer surplus.

B. It has no effect on consumer or producer surplus.

C. It decreases both consumer and producer surplus.

D. It decreases consumer surplus and increases producer surplus.

D

The Asian crisis demonstrated that

A. a country can be vulnerable to a currency crisis even if its own position looks healthy by normal measures.

B. a country can never be vulnerable to a currency crisis if its own position looks healthy by normal measures.

C. a country can avoid a currency crisis if it is closely connected with the world capital market.

D. a country can take preventive measures to protect itself from contagious market disturbances.

A

The severity and breadth of the 2007-2009 crisis have led to initiatives to reform both national financial systems and the international system in order to

A. fill gaps in existing regulatory frameworks while also paying more attention to the macroeconomic causes and consequences of banking problems.

B. avoid financial crisis permanently in the future.

C. make it easy for banks to get around capital requirements.

D. to set up an omniscient global financial authority responsible for monitoring and regulating the systems.

A

Imagine that there are two countries, Home and Far Far Away, and that residents of each own only one asset, domestic land yielding an annual harvest of mangoes. Assume that the yield on the land is uncertain. Half the time, Home's land yields a harvest of 5,000 tons of mangoes at the same time as Far Far Away's land yields a harvest of 2,500 tons. The other half of the time the outcomes are reversed. The average for each country mango harvest is

A. 2500.

B. 2750.

C. 3500.

D. 3750.

E. 3000.

D

A foreign exchange swap

A. is a spot sale of a currency.

B. make up a negligible proportion of all foreign exchange trading.

C. is a forward repurchase of the currency.

D. is a spot sale of a currency combined with a forward repurchase of the currency.

E. is a spot sale of a currency combined with a forward sale of the currency.

D

A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is know as a(n)

A. countervailing tariff policy.

B. international dumping policy.

C. redistribution quota policy.

D. trade adjustment assistance policy

E. beggar thy neighbor policy.

E

What is a preferential trading agreement?

A. An agreement that imposes tariffs on all member countries.

B. An agreement that lowers tariffs between member countries but not for the rest of the world.

C. An agreement that eliminates all trade barriers globally.

D. An agreement that increases tariffs on non-member countries.

B

Suppose one is offered a gamble in which you win $1,000 half the time but lose $1,000 half the time. The average payoff on this gamble—its expected value—is: 0.5 $1,000 + 0.5 (-$1,000) = $0.

Under such circumstances:

A. no one will take the gamble.

B. risk-averse individuals will take the gamble.

C. risk-loving individuals will not take the gamble.

D. risk-neutral individuals will not take the gamble.

E. risk-loving and risk-neutral individuals may take the gamble.

E

Spain had been percent poorer than the United States in 1960, was only around percent poorer in 2017 — thereby having narrowed the earlier income gap.

A. 58; 38

B. 38; 28

C. 58; 28

D. 62; 38

C

Why does the gravity model work? (Soạn bởi Thủy Tiên)

A. Large economies became large because they were engaged in international trade.

B. Large economies tend to have large incomes and tend to spend more on imports.

C. Large economies have relatively large incomes; and hence spend more on government promotion of trade and investment.

D. Large economies tend to avoid trading with small economies.

E. Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country.

B

The importers' ability to obtain foreign goods today in return for a promise to repay soon after they have sold the goods to domestic customers is an example of

A. intertemporal trade.

B. trade of assets for assets.

C. risk-free trade.

D. pure asset swap.

A

Today US. protectionism is concentrated in high—tech industries.

A. high-tech industries.

B. industries in which Japan has a comparative advantage.

C. labor-intensive industries.

D. computer intensive industries.

E. capital-intensive industries.

B ( chapter 9)

Two related and essential tools to get a complete picture of the macroeconomic linkages among economies that engage in international trade include

A. national income accounting and balance of payment accounting.

B. public accounting and government accounting.

C. foreign currency accounting and balance of payment accounting.

D. corporate accounting and foreign exchange accounting.

A

Which of the following statements is NOT true regarding a bank failure?

A. A bank fails when its profit is much lower and it is unable to compete with other local banks.

B. A bank fails when it is unable to meet its obligations to its depositors and other creditors.

C. A bank fails when it is unable to repay its short-tenn liabilities, including demand deposits without notice.

D. A bank fails when some of the bank's borrowers are unable to repay their loans or the bank's assets decline in value for some other reason.

E. A bank fails when faced with a large and sudden loss of deposits - a bank run.

A

When there are external economies of scale, an increase in the size of the market will

A. not affect the number of firms, but will lower the cost per unit.

B. decrease the number of firms and lower the cost per unit.

C. decrease the number of firms and raise the cost per unit.

D. increase the number of firms and raise the cost per unit.

E. increase the number of firms and lower the cost per unit.

E

If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must

A. have no effect on its terms of trade.

B. harm world terms of trade.

C. harm its terms of trade.

D. decrease its marginal propensity to consume.

E. improve its terms of trade.

C

If the goods' money prices do NOT change, a depreciation of the dollar against the pound

A. makes British sweaters cheaper in terms of American jeans.

B. makes British sweaters more expensive in terms of American jeans.

C. makes American jeans more expensive in terms of British sweaters.

D. doesn't change the relative price of sweaters and jeans.

E. makes British jeans more expensive in Britain.

B

Which one of the following statements is the MOST accurate?

A. Since dollar and yen interest rates are measured in comparable terms, they can move quite differently over time.

B. Since dollar and yen interest rates are not measured in comparable terms, they can move quite differently over time.

C. Since dollar and yen interest rates are measured in comparable terms, they move quite the same over time.

D. Since dollar and yen interest rates are measured in comparable terms, they still move quite differently over time.

E. Since dollar and yen interest rates are so similar, they move quite the same way over time.

D

A country cannot produce a mix of products with a higher value than where

A. the isovalue line is above the production possibility frontier.

B. the isovalue line is below the production possibility frontier.

C. the isovalue line is tangent with the indifference curve.

D. the isovalue line is tangent to the production possibility frontier.

E. the isovalue line intersects the production possibility frontier.

D

Since the period following World War II (the early 1950s), the proportion of most countries' production being used in some other country

A. remained constant.

B. increased

C. decreased.

D. fluctuated widely with no clear trend.

E. increased slightly before dropping off.

B ( lưu ý có 3 câu hỏi tương tự, đáp án vẫn là increased)

What is consumer surplus?

A. The amount producers gain from sales.

B. The amount consumers gain from purchases.

C. The difference between the price paid and the cost of production.

D. The revenue collected by the government from tariffs.

B

Which of the following statements is TRUE for the US?

A. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $250,000.

B.The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $100,000.

C.The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $10,000.

D. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against natural disasters up to $100,000.

E. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against floods up to $100,000.

A

Capital markets of poor developing countries that liberalized their financial systems to allow private asset trade with foreigners are called

A. direct foreign markets.

B. foreign exchange markets.

C. stock & bond markets.

D. emerging markets.

E. fledgling financial markets.

D

In the current Post-Industrial economy, international trade in services (including banking and financial services)

A. is an increasingly important component of global trade.

B. does not exist.

C. far surpasses the predictions of economist Alan Blinder.

D. is relatively stagnant.

E. dominates world trade.

A

In modern economies,

A. Outsourcing increases international labor mobility.

B. Restrictions on international labor mobility are common.

C. Restrictions on international labor mobility are rare.

D. Labor is far more mobile internationally than capital.

E. Labor is far more mobile internationally than it is intra-nationally.

B

Import-substituting industrialization has aggravated other problems, such as

A. income inequality and unemployment.

B. violence and crime.

C. gambling and overspending.

D. corruption and brain drain.

A

The infant industry argument was an important theoretical basis for

A. neo-colonialist theory of international exploitation.

B. import-substituting industrialization.

C. historiography of the industrial revolution in Western Europe-.

D. the East-Asian miracle.

E.the reduction of tariffs on Western Europe.

B

Between 1960 and 2017, the annual growth rate in percent per year was the highest in

A. South Korea.

B. United States.

C. Brazil.

D. Singapore.

E. China.

E

In June 2012, euro area finance ministers extended to Spain an ESM loan potentially as big as ______ to cover recapitalization of its ailing banks. But the country remained in turmoil.

A. €100 billion

B. €10 billion

C. €110 billion

D. €1 billion

A

Cost-benefit analysis of international trade

A. is empirically intractable.

B. never leads to government intervention in intemational trade.

C. focuses attention primarily on conflicts of interest within countries.

D. is basically useless.

E. focuses attention on conflicts of interest between countries.

C

Critics argued that

A. globalization was not helping workers in developing countries who suffered from low wages and associated poor working conditions.

B. globalization was helping workers in developing countries to earn higher wages under better working conditions.

C. globalization lowered further wages and worsened working conditions of workers in developing countries.

D. globalization did not increase employment in developing countries-

A

There are many ways developing countries finance their external deficits EXCEPT

A. bank finance.

B. portfolio investment in ownership of firms.

C. bond finance.

D. official lending.

E. foreign exchange rates.

E

Suppose that a country experiences growth strongly biased toward its export, cloth,

A. this will tend to leave the country's terms of trade unchanged.

B. this will tend to improve the country's terms of trade.

C. this will increase the price of cloth relative to the imported good.

D. this will tend to worsen the terms of trade for the country's trading partner.

E. this will tend to worsen the country's terms of trade.

E

Import substitution policies make use of

A. tariffs that discourage goods from entering a country.

B. quotas applied to goods that are shipped abroad.

C. production subsidies granted to industries with comparative advantage.

D. tax breaks granted to industries with comparative advantage.

E. production facilities provided by industrialized countries.

A

Over 50 years since the country launched a series if sweeping economic reforms in 1963, South Korea increased its real per capita GDP by a factor of about _______ , more than the increase that the United States has achieved over the past century.

A. 16

B. 10

C. 6

D. 20

A

In the two-country model of international labor mobility

A. migration may reduce global output, although some groups are made better off.

B. migration results in increased global output, and all groups are made better off.

C. migration has no effect on global output, although some groups are made worse off.

D. migration results in increased global output, although some groups are made worse off.

E. migration has no effect on global output, although some groups are made better off.

D

What is a specific tariff?

A. A tax levied as a fraction of the value of imported goods.

B. A fixed charge for each unit of imported goods.

C. A tax levied on exported goods.

D. A tax levied on domestic goods.

B

When a central bank lends to banks facing massive deposit outflows as much as they need to satisfy their depositors' claims, it is acting as a _______ to safeguard against financial panic conditional on the bank's sound management.

A. lender of last resort

B. life saver

C. problem solver

D. risk taker

A

Which of the following statements is NOT TRUE?

A. A localized industrial cluster improves efficiency because it limits the market size by only attracting local firms and local suppliers.

B. A localized industrial cluster improves efficiency because it can bring together many firms that collectively provide a large enough market to support a wide range of specialized suppliers.

C. A localized industrial cluster improves efficiency because it creates more competition, availability, and affordability of key inputs from a network of specialized suppliers.

D. A localized industrial cluster improves efficiency because it frees individual producers from the expense of developing capital equipment internally and by spreading the costs of development by using specialized suppliers.

A

Tariff rates on products imported into the U.S.

A. were prohibited by the Constitution.

B. have risen steadily since 1920.

C. have dropped substantially over the past 50 years.

D. were the government's main source of income in 2006.

E. reached an all time high in 2002.

C

Which of the following statements is MOST accurate?

A. A rise in the size and frequency of country-specific disturbances to the joining country's product markets raises the critical level of economic integration at which the exchange rate area is joined.

B. A rise in the size and frequency ...... country's product markets lowers the critical level of economic integration at which the exchange rate area is joined.

C. A decline in the size and frequency..... country's product markets raises the critical level of economic integration at which the exchange rate area is joined.

D. A rise in the size and frequency ...... country's product markets has no effect on the critical level of economic integration at which the exchange rate area is joined-

E. A decline in the size and frequency ..... country's product markets does not affect the level of economic integration at which the exchange rate area is joined.

A ( câu hỏi quá số từ nên chị rút gọn: .... = với cụm chị gạch chân)

There is a good case for subsidizing the industry

A. if firms in an industry generate knowledge that other firms can use as externalities.

B. if firms in an industry generate knowledge that other firms cannot use.

C. if firms in an industry do not generate any new knowledge to be shared.

D. if firms in an industry generate knowledge at a higher cost than benefits.

A

From 1990 to 2019, OECD countries' saving and investment ratios to output tend to be

A. positively related.

B. negatively related.

C. completely unrelated.

D. randomly related.

A

What are quota rents?

A. Government revenue from tariffs.

B. Subsidies paid to exporters.

C. Extra revenues earned by quota license holders.

D. Costs incurred by importers due to quotas.

C

Net unilateral transfers

A. are part of a national income.

B. are part of a country's product.

C. must be added to NNP in calculations of national income.

D. are part of a country's GNP.

E. Only A and C.

E

If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then an investor should:

A. invest only in dollars.

B. invest only in euros.

C. be indifferent between dollars and euros.

D. invest only in dollars if the exchange rate is expected to remain constant.

E. invest only in euros if the exchange rate is expected to remain constant.

D

Which of the following statements is TRUE?

A. Increased trade can shift the distribution of income within countries and create losers as well as winners.

B. Increased trade has no effect on the distribution of income within countries.

C. Increased trade can shift the distribution of income within countries and create only winners.

D. Increased trade can shift the distribution of income within countries and create only losers.

A

The earliest statement of the principle of comparative advantage is associated with

A. David Ricardo.

B. Adam Smith.

C. David Hume.

D. Bertil Ohlin.

E. Eli Heckscher.

A

Although emerging and developing countries make up a ______ share of the global economy measured by GDP, their financial markets are much ______ than those of the advanced economies.

A. large; smaller

B. small; larger

C. large; larger

D. small; smaller

A

Futures contracts differ from forward contracts in that

A. future contracts ensures you will receive a certain amount of foreign currency at a specified future date.

B. future contracts bind you into your end of the deal.

C. future contracts allow you to sell your contract on an organized futures exchange.

D. future contracts are a disadvantage if your views about the future spot exchange rate are to change.

E. futures contracts don't allow you to realize a profit or a loss right away.

C

Which of the following is NOT a major actor in the foreign exchange market?

A. corporations

B. central banks

C. commercial banks

D. non-bank financial institutions

E. tourists

E

Carbon tariffs are supposed

A. to charge importers of goods from countries without climate-change policies an amount proportional to the carbon dioxide emitted in the production of those goods.

B. to increase greenhouse gas emission.

C. to shift polluting production to countries with lax regulation.

D. to require both producers and consumers pay the highest price for greenhouse emission.

A

In the United States, (gross) investment has fluctuated between _______ of GNP in recent years.

A. 2 and 12 percent

B. 11 and 22 percent

C. 22 and 32 percent

D. 32 and 42 percent

E. 42 and 52 percent

B

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation? (Soạn bởi Thủy Tiên)

A. export promotion

B. import substitution

C. international commodity agreements

D. infant industry promotion

E. intra-industry trade practice

A

In the specific factors model, the effects of trade on welfare are ______ for mobile factors, _____ for fixed factors used to produce the exported good, and ______ for fixed factors used to produce the imported good

A. positive; positive; positive

B. ambiguous; negative; positive

C. positive; ambiguous; ambiguous

D. negative; ambiguous; ambiguous

E. ambiguous; positive; negative

E

The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?

A. Imports are only restricted when foreign-made goods do not meet domestic standards of quality.

B. Import restrictions are the result of trade wars between hostile countries.

C. Trade can have substantial effects on a country's distribution of income.

D. The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.

E. Restrictions on imports are intended to benefit domestic consumers.

C

The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to

A. differences in resources.

B. differences in technology.

C. gravity relationships among countries.

D. differences in preferences.

E. differences in labor productivity.

E

In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ______ unit labor requirements from 2 countries to compare opportunity costs.

A. 4

B. 5

C. 2

D. 3

Ε. 1

A

According to the Heckscher-Ohlin model

A. only the country with the more advanced technology gains from trade.

B. the gainers from trade could compensate the losers and still retain gains.

C. everyone gains from trade.

D. the scarce factor gains from trade and the abundant factor loses.

E. a country gains from trade if its exports have a high value added.

B

The distinction between international trade and international money is not entirely clear because

A. developments caused by purely monetary changes have no real effects.

B. real developments in the trade accounts do not have monetary implications.

C. most international trade involves monetary transactions.

D. the balance of payments includes only real measures.

E. trade models focus on real, or barter relationships.

C

In presence of external economies of scale, a country's industry with ______ cumulative output to date will experience a ______ unit cost.

A. higher; lower

B. higher; higher

C. lower; lower

D. higher; constant

A

Who sells what to whom

A. is determined by political rather than economic factors.

B. has been a major preoccupation of international economics.

C. is not a valid concern of international economics.

D. is not considered important for government foreign trade policy since such decisions are made in the private competitive market.

E. is less important than international economic theory.

B