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1 Copyright © 2018 Pearson Education, Inc.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
- higher trade-to-GDP ratios.
- lower trade-to-GDP ratios.
- relatively greater capital outflows.
- 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
- exports divided by GDP.
- imports divided by GDP.
- exports plus imports divided by GDP.
- 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
(International Economics, 7e James Gerber) (Test Bank all Chapters) 1 / 4
2 Copyright © 2018 Pearson Education, Inc.4) A relative measure of the importance of trade is
- the dollar value of trade.
- trade as a percentage of GDP.
- the dollar value of trade adjusted for inflation.
- 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
- the creation of the International Monetary Fund.
- the creation of numerous regional trade agreements.
- the rapid rate of East Asian economic growth.
- 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
- less in 1900 than in 2010.
- unimportant to global integration until the 1960s.
- greater in 1900 than in 2010.
- 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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3 Copyright © 2018 Pearson Education, Inc.7) A major impact of the transatlantic telegraph was
- a reduction in time required to complete a financial transaction between New York and
- an increase in labor flows across the Atlantic.
- a decrease in trade barriers between the United States and Europe.
- an increase in trade conflicts between the United States and Europe.
London
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
- around 1970.
- around World War II.
- around World War I.
- 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
- high rates of investment.
- low rates of investment.
- stock market bubbles.
- 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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4 Copyright © 2018 Pearson Education, Inc.10) Since the end of World War II,
- world trade has grown more slowly than world GDP in the same time period.
- world trade has grown more slowly than during the years leading up to World War II.
- the trade- to-GDP ratios of most countries have fallen.
- 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
- the percent of our population that was foreign born was higher.
- wages were lower.
- labor was important in agriculture.
- 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
- that labor is much more mobile.
- for the first time, technological innovations have reduced the barrier of distance.
- for the first time, capital is mobile.
- 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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