International Economics, 7th Edition BY James Gerber
Email: richard@qwconsultancy.com
International Economics, 7e (Gerber) Chapter 1 The United States in a Global Economy 1.1 Introduction: International Economic Integration 1) There are no questions for this section. Topic: Introduction: International Economic Integration 1.2 Elements of International Economic Integration 1) Countries such as the United States that have large populations tend to have A) higher trade-to-GDP ratios. B) lower trade-to-GDP ratios. C) relatively greater capital outflows. D) relatively smaller capital outflows. Answer: B Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.2 Compute the trade-to-GDP ratio and explain its significance. AACSB: Application of knowledge 2) The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be A) 0.1. B) 0.2. C) 0.5. D) -0.1. Answer: C Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.2 Compute the trade-to-GDP ratio and explain its significance. AACSB: Application of knowledge 3) The trade-to-GDP ratio is calculated by A) exports divided by GDP. B) imports divided by GDP. C) exports plus imports divided by GDP. D) exports minus imports divided by GDP. Answer: C Topic: Elements of International Economic Integration Difficulty: Easy Objective: LO 1.2 Compute the trade-to-GDP ratio and explain its significance. AACSB: Application of knowledge
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4) A relative measure of the importance of trade is A) the dollar value of trade. B) trade as a percentage of GDP. C) the dollar value of trade adjusted for inflation. D) trade as a percentage of investment. Answer: B Topic: Elements of International Economic Integration Difficulty: Easy Objective: LO 1.2 Compute the trade-to-GDP ratio and explain its significance. AACSB: Application of knowledge 5) An important factor that increased international capital flows in the latter part of the 1800s was A) the creation of the International Monetary Fund. B) the creation of numerous regional trade agreements. C) the rapid rate of East Asian economic growth. D) technological innovations. Answer: D Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge 6) Labor mobility was A) less in 1900 than in 2010. B) unimportant to global integration until the 1960s. C) greater in 1900 than in 2010. D) never controversial. Answer: C Topic: Elements of International Economic Integration Difficulty: Easy Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge
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7) A major impact of the transatlantic telegraph was A) a reduction in time required to complete a financial transaction between New York and London B) an increase in labor flows across the Atlantic. C) a decrease in trade barriers between the United States and Europe. D) an increase in trade conflicts between the United States and Europe. Answer: A Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge 8) The trade-to-GDP ratio for the United States reached its lowest point of the last 100 years A) around 1970. B) around World War II. C) around World War I. D) around 2008. Answer: B Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge 9) Countries that have high rates of savings also have A) high rates of investment. B) low rates of investment. C) stock market bubbles. D) low rates of growth. Answer: A Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge
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10) Since the end of World War II, A) world trade has grown more slowly than world GDP in the same time period. B) world trade has grown more slowly than during the years leading up to World War II. C) the trade-to-GDP ratios of most countries have fallen. D) world trade has grown more rapidly than world output. Answer: D Topic: Elements of International Economic Integration Difficulty: Easy Objective: LO 1.1 Discuss historical measures of international economic integration with data on trade, capital flows, and migration. AACSB: Application of knowledge 11) One of the reasons we know that international labor mobility has been higher at other times is because A) the percent of our population that was foreign born was higher. B) wages were lower. C) labor was important in agriculture. D) the population was younger. Answer: A Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.3 Describe three factors in the world economy today that are different from the economy at the end of the first wave of globalization. AACSB: Application of knowledge 12) One important difference between the international economy of today and the economy of 100 years ago is A) that labor is much more mobile. B) for the first time, technological innovations have reduced the barrier of distance. C) for the first time, capital is mobile. D) the presence of international bodies such as the IMF and World Bank. Answer: D Topic: Elements of International Economic Integration Difficulty: Moderate Objective: LO 1.3 Describe three factors in the world economy today that are different from the economy at the end of the first wave of globalization. AACSB: Application of knowledge
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