ECON 335 MIDTERM EXAM 2026-2027 EXAM COMPLETE WITH SOLUTIONS 26pages

1. Would large economies such as the United States that have large populations tend to have lower or higher openness indicators? Lower 2. A relative measure of the importance of trade is trade as a percentage of GDP. 3. The index of openness for a nation that had $400 million in exports, $400 million in imports, and GDP of $1,600 million would be? 0.5 Trade to GDP ratio = (exports + imports) /GDP 4. The openness indicator is measured as? exports plus imports divided by GDP. 5. An important factor that increased international capital flows in the second half of the nineteenth century was technological innovations. 6. Labor mobility was greater in 1900 than in 1999. 7. One important difference between the international economy of today and the economy of 100 years ago is the presence of international bodies such as the IMF and World Bank. 8. Economists overwhelmingly support more open markets because trade leads to a better allocation of resources inside countries. 9. One of the most important ways in which local instabilities are quickly spread to the international economy is through mobility of capital. 10.Smaller countries tend to have lower openness measures thanlarge countries False 11.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 beA) 0.1. B) 0.2. C) 0.5. D) -0.1. 12. The trade-to-GDP ratio is calculated by A) exports divided by GDP.