Exam (elaborations)
Global Economics International Edition 13th Edition by Robert J. Carbaugh - Test Bank
- Course
- Institution
Global Economics International Edition 13th Edition by Robert J. Carbaugh - Test Bank
[Show more]
Seller
Follow
evileye251
Reviews received
Content preview
,CHAPTER 1—THE INTERNATIONAL ECONOMY AND GLOBALIZATIONMULTIPLE CHOICE
1. A primary reason why nations conduct international trade is because:
a. Some nations prefer to produce one thing while others produce other things
b. Resources are not equally distributed among all trading nations
c. Trade enhances opportunities to accumulate profits
d. Interest rates are not identical in all trading nations
ANS: B PTS: 1
2. A main advantage of specialization results from:
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
ANS: A PTS: 1
3. International trade in goods and services is sometimes used as a substitute for all of the following
except:
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
ANS: D PTS: 1
4. If a nation has an open economy, it means that the nation:
a. Allows private ownership of capital
b. Has flexible exchange rates
c. Has fixed exchange rates
d. Conducts trade with other countries
ANS: D PTS: 1
5. International trade forces domestic firms to become more competitive in terms of:
a. The introduction of new products
b. Product design and quality
c. Product price
d. All of the above
ANS: D PTS: 1
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, 6. The movement to free international trade is most likely to generate short-term unemployment in which
industries?
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
ANS: B PTS: 1
7. International trade is based on the idea that:
a. Exports should exceed imports
b. Imports should exceed exports
c. Resources are more mobile internationally than are goods
d. Resources are less mobile internationally than are goods
ANS: D PTS: 1
8. Arguments for free trade are sometimes disregarded by politicians because:
a. Maximizing domestic efficiency is not considered important
b. Maximizing consumer welfare may not be a chief priority
c. There exist sound economic reasons for keeping one's economy isolated from other
economies
d. Economists tend to favor highly protected domestic markets
ANS: B PTS: 1
9. How much physical output a worker producers in an hour's work depends on:
a. The worker's motivation and skill
b. The technology, plant, and equipment in use
c. How easy the product is to manufacture
d. All of the above
ANS: D PTS: 1
10. The largest amount of trade with the United States in recent years has been conducted by:
a. Canada
b. Germany
c. Chile
d. United Kingdom
ANS: A PTS: 1
11. Increased foreign competition tends to:
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
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: C PTS: 1
12. ____ 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.
a. Competitiveness
b. Protectionism
c. Comparative advantage
d. Absolute advantage
ANS: A PTS: 1
13. A firm's ____, relative to that of other firms, is generally regarded as the most important determinant
of competitiveness.
a. Income level
b. Tastes and preferences
c. Governmental regulation
d. Productivity
ANS: D PTS: 1
14. Free traders maintain that an open economy is advantageous in that it provides all of the following
except:
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
ANS: D PTS: 1
15. Recent pressures for protectionism in the United States have been motivated by all of the following
except:
a. U.S. firms shipping component production overseas
b. High profit levels for American corporations
c. Sluggish rates of productivity growth in the United States
d. High unemployment rates among American workers
ANS: B PTS: 1
16. International trade tends to cause welfare losses to at least some groups in a country:
a. The less mobile the country's resources
b. The more mobile the country's resources
c. The lower the country's initial living standard
d. The higher the country's initial living standard
ANS: A PTS: 1
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller evileye251. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $26.74. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now