International Econ Midterm

Froggy Jumps

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Test your trade knowledge

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Jess

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International Econ Midterm


Froggy Jumps International Econ MidtermVersion en ligne Test your trade knowledge par Jess 1 During the period of decline of great nations, which of the following combination of things tends to happen? a economic decline and high taxes b economic growth and high taxes c economic decline and low taxes 2 Which of the following represents a time of growth in power, wealth, arts and science, characterized by openness, tolerance and confidence? a Silver Age b Bronze Age c Golden Age 3 Genetics and other evidence indicate modern humans originated in .. a America b Africa c Eurasia 4 During the period of growth of great nations, which of the following combination of things tends to happen? a economic decline and high taxes b economic growth and low taxes c economic growth and high taxes 5 Toward the end of which century was slavery (meaning chattal slavery) ended throughout almost all of the world by an international convention? a 17th Century (meaning the 1600s) b 20th Century (meaning the 1900s) c 19th Century (meaning the 1800s) 6 Through natural selection, how did humans adapt themselves to the many different climates they encountered when they spread themselves over the world? a skin color b number of eyes c clothing 7 Through culture, how did humans adapt themselves to the many different climates they encountered when they spread themselves over the world? a number of eyes b counting c clothing 8 Which of the following represents the time humans could fashion tools from (and only from) metals with a relatively low melting point? a Iron Age b Bronze Age c Silver Age 9 From the earliest times, modern humans painted images on cave walls, This is an example of ... a complex tool-making b religious observance c cultural expression 10 Which of the following was the first animal domesticated by humans? a cat b dog c sheep 11 During the period of growth of great nations, which of the following combination of things tends to happen? a advances in the arts and sciences; and, declines in virtues such as courage, honesty and generosity b advances in both the arts and sciences; and, in virtues such as courage, honesty and generosity c declines in the arts and sciences; and, advances in virtues such as courage, honesty and generosity 12 In the first great migration, humans traveled along the southern edge of Asia until they reached ... a America b Australia c Eurasia 13 From the earliest times, modern humans buried the dead with ceremony, such as burying the dead with several elongated knifes. This is an example of ... a complex tool-making b cultural expression c religious observance 14 Which of the following was the second animal domesticated by humans? a cow b sheep c Dog 15 In the second great migration, humans went in several directions. They went to each of the following places EXCEPT ... a Australia b Eurasia c America 16 Which of the following river or rivers is associated with the ancient civilization of Sumer? a Nile b Tigris and Euphrates c Yellow and Yangtze 17 Where was the first place in the world where slavery (meaning chattel slavery) was prohibited? a Europe b Africa c America 18 Wages paid construction workers in England during 1200 to 2000 indicate ... a wages were rising prior to 1800; and, have since been fluctuating about a flat trend b wages were falling prior to 1800; and, have since been fluctuating about a flat trend c wages fluctuated about a flat trend prior to 1800; and, have since been rising 19 Which of the following is associated with Thomas Malthus? a the iron law of wages b the universe began as a singular event known as "the Big Bang" c increase in productivity due to specialization and trade 20 Which of the following is associated with Adam Smith? a the iron law of wages b increase in productivity due to specialization and trade c a cycle involving the rise and fall of great nations 21 What is the correlation between economic freedom and GDP per capita? a at first negative and then positive b positive c Negative 22 During the Little Ice Age that preceded the Industrial Revolution, the average height of Northern European men ... a fell; following Industrial Revolution, Northern Europeans grown taller before Little Ice Age b rose after Industrial Revolution, Northern Europeans has returned to height of before Lil Ice Age c fell after Industrial Rev, the Northern Europeans has returned to height of before Little Ice Age 23 During the 19th Century, whale oil became a popular source of energy for producing light. But, it looked as though whales were being hunted to extinction. What then became the main source of energy for producing light? a natural gas b oil c nuclear power 24 Prior to the Industrial Revolution, when wages were low ... a more children would survive to adulthood and wages would then rise b fewer children would survive to adulthood and wages would then fall c fewer children would survive to adulthood and wages would then rise 25 Using the example of pin manufacture, Adam Smith argued that productivity increased when ... a robots replaced workers b teams of workers were organized in which each member performed only one step c individual workers performed all of the steps 26 During the early part of the Industrial Revolution, wood was the main source of energy, But, it looked as though England was going to run out of wood. What then became the main source of energy for factories, railroads and steam power? a oil b coal c natural gas 27 Prior to the Industrial Revolution, when wages were high ... a more children would survive to adulthood and wages would then fall b fewer children would survive to adulthood and wages would then rise c more children would survive to adulthood and wages would then rise 28 While there are only winners in the long-run with free trade, there are some losers in the short-run when countries move to free trade. Which of the following are losers in the short-run when a country moves to free trade? a producers in the expanding sector (where the country has the comparative advantage) b producers in the shrinking sector (where other countries have the comparative advantage) c the country (as a whole) 29 Before trade, Country A can produce one more unit of Good X at the opportunity cost of three units of Good Y; and, Country B can produce one more unit of Good X and the opportunity cost of five units of Good Y. With trade, what will tend to happen? a Country A will produce more of Good X; and, Country B will produce more of Good Y b Country A will produce more of Good Y; and, Country B will produce more of Good X c Both Country A and B will produce more of Good X 30 According to Paul Krugman, as cost of transportation falls ... a production is dispersed over more places and trade decreases b production is concentrated in fewer places and trade increases c production is dispersed over more places and trade increases 31 Michael Porter emphasizes which of the following? a how climate and geography give countries natural advantages b the role of managers in making their firm's competitive advantage c how investment in physical capital gives countries a comparative advantage in manufacturing 32 Pairs of countries can have a trade imbalance with each other, and yet have an overall balance of trade, because of ... a competitive advantage b the law of comparative advantage c triangle trade 33 David Ricardo is associated with . a competitive advantage b the law of comparative advantage c triangle trade 34 Which of the following is true of countries with the highest trade openness as compared to countries with the lowest trade openness? Countries with the highest trade openness ... a countries have higher GDP per capita and lower unemployment rates b countries with the high have lower GDP per capita and higher unemployment rates c have both lower GDP per capita and unemployment rates 35 Nowadays, how do economists explain trade complexity? a how investment in human capital gives countries a comparative advantage in services b how investment in physical capital gives countries a comparative advantage in manufacturing. c manufacturing, services, human capital, physical capital, geography, and climate. ALL OF THESE 36 Until recently, how did economists characterize international trade? a rich countries export manufactured goods; and, poor nations export minerals and agricultural goods b rich export services highwage manu goods middle export lowwage manu goods poor ex minerals ag goods c rich countries export minerals and agricultural goods; and, poor nations export manufactured goods 37 Michael Porter is associated with ... a competitive advantage b triangle trade c the law of comparative advantage 38 Let's say there is a world price for a good, Pw, that is lower than a country's domestic equilibrium price for the good without trade, Pe. What happens when the country goes from no trade to free trade? a both domestic production and domestic consumption of the good increase b domestic production of the good decreases and domestic consumption of the good increases c both domestic production and domestic consumption of the good decrease 39 Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. What happens to consumer surplus and to producer surplus (or profit)? a both consumer surplus and producer surplus (or profit) decrease b consumer surplus decreases and producer surplus (or profit) increases c consumer surplus increases and producer surplus (or profit) decreases 40 Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. What happens to price and to social surplus (equal to the sum of consumer surplus and producer surplus [or profit])? a both price and social surplus decrease b both price and social surplus increase c price increases and social surplus decreases 41 What is the most likely response to a tariff (or tariff increase), by those opposing it? a foreign producer of the good subject to the tariff or tariff increase will seek retaliatory tariffs b domestic producers of the good subject to the tariff or tariff increase will seek retaliatory tariff c foreign consumers of the good subject to the tariff will support free trade-oriented politicians 42 During the three decades leading up to the U.S. Civil War (1830-1860), ... a Southern farmers succeeded in raising tariff rates b Northern manufacturers succeeded in lowering tariff rates c Southern farmers succeeded in lowering tariff rates 43 What is a tax on imported goods (but not on domestically-produced goods) that completely reduces imports of that good? a high tariff b deadweight loss c quota 44 For a short time following the Smoot-Hawley Tariff in 1930, ... a agricultural employment in the U.S. rose b manufacturing employment in the U.S. rose c agricultural employment in the U.S. fell 45 Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. Which of the following doesn't happen to consumer surplus? a consumer surplus increases b a part of consumer surplus is transferred to government revenue c a part of consumer surplus is simply lost 46 What is a quantitative restriction on imported goods? a moderate tariff b quota c deadweight loss 47 Quotas work because of all of the following except ... a domestic consumers don't realize what's going on b foreign producers are hurt c domestic producers are helped 48 Surveys indicate that ... a Americans tend to support free trade during good times and oppose free trade during bad times b Americans tend to oppose free trade during both good and bad times c Americans tend to support free trade during both good and bad times 49 What is a tax on imported goods (but not on domestically-produced goods) that only partially reduces imports of that good? a moderate tariff b deadweight loss c high tariff 50 The nations of Argentina, Brazil, Uruguay and Venezuela, along with some others, are members of what trade agreement? a Mercosur b West African Community c ASEAN (Association of South East Asia Nations) 51 In the successful Uruguay Round of trade negotiations ... a Rich = extension trade agree to intellectual property developing = reduced barriers to trade textile b Rich countries sought reduced barriers to trade in textiles without reciprocity c Rich = reduce barrier trade in textiles developing=extension of trade agree to intellectual property 52 The EU (European Union) is a Customs Union. Since it is a Customs Union, it probably features ... a each member country having its own currency b tariffs and other barriers to trade between member countries c free movement of labor and capital between member countries 53 In the successful Uruguay Round of trade negotiations ... a Rich=extension trade agreement to services developing countries reduced barriers to trade in ag good b Developing countries sought reduced barriers to trade in agricultural goods without reciprocity c Developing countries sought extension of the trade agreement to services without reciprocity 54 The nations of Indonesia, Malaysia, Singapore and Thailand, along with some others, are members of what trade agreement? a ASEAN (Association of South East Asia Nations) b Mercosur c West African Community 55 Compare trade today as governed by the World Trade Organization to trade in the past during the Golden Ages of China, Rome and Islam. a In the past, trade depended on empires; but, in the present trade is between sovereign countries b In the present as in the past, trade depends on empires c In the past, trade was between sovereign countries; but, in the present trade depends on empires 56 In the unsuccessful Doha Round of trade negotiations ... a rich countries-trade agreement to services. developing reduced barriers to trade in ag goods b Developing countries sought reduced barriers to trade in agricultural goods without reciprocity c Rich=reduced barriers trade in ag good developing countries extension of trade agreement to services 57 Among the concerns of the World Trade Organization is anti-dumping legislation. What is anti-dumping legislation? a sales by foreign producers below cost b regulations favoring domestic producers c a tax on foreign products (not on domestic products) 58 NAFTA recently renamed USMCA was world's first north-south trade agreement. That is a trade agreement between highly advanced countries US and Canada and a developing country Mexico. What kind of gain from trade was the idea of this trade agreement? a comparative advantage as described by David Ricardo b developing a shared culture and language c increase competition via economie of scale and variety as described by Paul Krugman % Michael Porter 59 From the General Agreement on Tariffs and Trade (GATT) of 1947 through the organization of World Trade Organization (WTO) in 1995, the number of member countries ... a grew from 23 to 161 b was more or less steady at about 23 c declined from 161 to 23 60 During the first four decades following the formation of the US 1790-1830 a Northern manufacturers succeeded in raising tariff rates b Southern farmers succeeded in lowering tariff rates c Northern manufacturers succeeded in lowering tariff rates 61 After other countries retaliated against the Smoot-Hawley Tariff in 1930... a agricultural employment in the US fell b agricultural employment in the US rose c manufacturing employment in the US rose 62 Which trade agreements provide for free trade between its member nations? a both customs unions and free trade agreements b custom unions but not free trade agreements c free trade agreements but not custom unions 63 Compare trade today as governed by the World Trade Organization to trade in the past during the Golden Ages of China, Rome, and Islam. a In the past, trade depended on empires, but in the present trade is between sovereign countries b In the past, trade was between sovereign countries, but in the present trade depends on empires c In the present as in the past, trade depends on empires 64 The EU is a customs union. Since it is a customs union, it probably features... a Free movement of labor and capital between member countries b tariffs and other barriers to trade between member countries c each member country having its own currency 65 Which trade agreements provide for a common trade policy with nations that are not members? a customs unions but not free trade agreements b both customs and free trade agreements c free trade agreements but not customs unions 66 Among the concerns of the World Trade Org is discrimination based on place of origin. What is discrimination based on place of origin? a regulations favoring domestic producers b sales by foreign producers below cost c a tax on foreign products 67 The South Asian Free Trade Agreement features two counties - Bhutan and Nepal - that are landlocked. What kind of gain from trade was a focus of this trade agreement? a free flow of goods b comparative advantage as described by David Ricardo c developing a shared culture and language 68 What broke the iron law of wages? a the accumulation of capital through saving and investment b cooling of the planet during the Little Ice Age c redistribution of wealth from the rich to the poor 69 In which of the following accounts is international tourism? a Merchandise Trade and Services Account b Capital Account c Income Account 70 In 1861, France invaded Mexico for non-payment of debt. Why didn't we, the U.S., immediately threaten France with war if they didn't leave? (p. 107) a Our army was busy at the time (with our own civil war) b we didn't care if the European powers re-colonized parts of America c we were confident Mexico would be able to defeat France on its own 71 In which of the following accounts are exports of goods? (see p. 97) a Merchandise Trade and Services Account b Capital Account c Income Account 72 Bonds that are rated AAA, as opposed to bonds that are rated BBB, tend to have ... (pp. 108-110) a little or no risk, and have a low interest rate b little or no risk, and have a moderately-high interest rate c moderately-high risk, and have a low interest rate 73 Since 2008, the U.S. has been running a Current Account deficit of 2 to 3 percent of GDP. This deficit is large because of ... (see pp. 98-99) a a huge merchandise trade deficit and a lesser unilateral transfers deficit b a huge merchandise trade surplus and a lesser unilateral transfers surplus c surpluses in services and income 74 In which of the following accounts are wages remitted by overseas workers (meaning workers in other countries)? (see p. 98) a Income Account b Capital Account c Merchandise Trade and Services Account 75 What is the main reason for the normal direction of capital flow? (p. 102) a higher expected returns in developing countries b higher expected returns in developed countries c lower risk in developed countries 76 In 1928, the U.S. and France promoted an international treaty known as the Kellogg-Briand Pact. This treaty ended "gun boat diplomacy." What was "gun boat diplomacy"? (see pp. 107-108) a the use of force by creditor nations against debtor nations in default b reduced reputation leading eventually to a cut-off of loans and other investments c reciprocal tariffs 77 Examination of 66 debt crises on 5 continents over a period of 8 centuries Kenneth S. Rogoff said that when countries build a debt in excess of a certain % of GDP they tend to default on their debt rather repay their debt as promised. What is this %? a 90 percent b 150 percent c 30 percent 78 In which of the following accounts are dividends received from foreign corporations? (see p. 98) a Income Account b Capital Account c Merchandise Trade and Services Account 79 Why is more capital accumulated through saving and investment when there is economic freedom? a Bc people work & save when keep what they produce & save bc entrepr more efficiently avail resources b c 80 Prior to the Industrial Revolution, standard of living of common people... a the subsistence level b c 81 According to Lloyd Reynolds, which is not a precondition for sustained economic growth a external war b internal order c national unification 82 America can produce one of manufactured good at 7 of agricultural, England can produce one more unit of manufactured good and opportunity cost of 5 units of agricultural goods. What will happen? a America will produce more agricultural goods and England will produce more manufactured goods b America will produce more manufactured good and England will produce more agricultural goods c They will produce the same amount 83 Which of the following is most likely to oppose a tariff? a foreign producers b c 84 What is the key thing to watch to see how concerned is the market for the risk of inflation? a the interest rate on government bonds? b c 85 When the real estate market or the stock market is booming in the US... a demand for the US dollar is strong and the US runs a larger current account deficit b demand for the US dollar is weak and the US runs a smaller current account c demand for the US dollar is strong and the US runs a smaller current account deficit 86 Wages paid agricultural workers in England during 1200 to 1800 indicate ... a negative correlation between wages & population prior to 1600 & wages were flat during 1600-1800 b positive correlation between wages & population prior to 1600 & wages were falling during 1600-1800 c negative correlation between wages & population prior to 1600 & wages were rising during 1600 - 1800 87 Which of the following is associated with Ibn Khaldun? a a cycle involving the rise and fall of great nations b the iron law of wages c increase in productivity due to specialization and trade

International Econ Midterm

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International Econ MidtermVersion en ligne

par Jess

During the period of decline of great nations, which of the following combination of things tends to happen?

Which of the following represents a time of growth in power, wealth, arts and science, characterized by openness, tolerance and confidence?

Genetics and other evidence indicate modern humans originated in ..

During the period of growth of great nations, which of the following combination of things tends to happen?

Toward the end of which century was slavery (meaning chattal slavery) ended throughout almost all of the world by an international convention?

Through natural selection, how did humans adapt themselves to the many different climates they encountered when they spread themselves over the world?

Through culture, how did humans adapt themselves to the many different climates they encountered when they spread themselves over the world?

Which of the following represents the time humans could fashion tools from (and only from) metals with a relatively low melting point?

From the earliest times, modern humans painted images on cave walls, This is an example of ...

Which of the following was the first animal domesticated by humans?

During the period of growth of great nations, which of the following combination of things tends to happen?

In the first great migration, humans traveled along the southern edge of Asia until they reached ...

From the earliest times, modern humans buried the dead with ceremony, such as burying the dead with several elongated knifes. This is an example of ...

Which of the following was the second animal domesticated by humans?

In the second great migration, humans went in several directions. They went to each of the following places EXCEPT ...

Which of the following river or rivers is associated with the ancient civilization of Sumer?

​​Where was the first place in the world where slavery (meaning chattel slavery) was prohibited?

Wages paid construction workers in England during 1200 to 2000 indicate ...

Which of the following is associated with Thomas Malthus?

Which of the following is associated with Adam Smith?

What is the correlation between economic freedom and GDP per capita?

During the Little Ice Age that preceded the Industrial Revolution, the average height of Northern European men ...

During the 19th Century, whale oil became a popular source of energy for producing light. But, it looked as though whales were being hunted to extinction. What then became the main source of energy for producing light?

Prior to the Industrial Revolution, when wages were low ...

​​Using the example of pin manufacture, Adam Smith argued that productivity increased when ...

During the early part of the Industrial Revolution, wood was the main source of energy, But, it looked as though England was going to run out of wood. What then became the main source of energy for factories, railroads and steam power?

Prior to the Industrial Revolution, when wages were high ...

While there are only winners in the long-run with free trade, there are some losers in the short-run when countries move to free trade. Which of the following are losers in the short-run when a country moves to free trade?

Before trade, Country A can produce one more unit of Good X at the opportunity cost of three units of Good Y; and, Country B can produce one more unit of Good X and the opportunity cost of five units of Good Y. With trade, what will tend to happen?

According to Paul Krugman, as cost of transportation falls ...

Michael Porter emphasizes which of the following?

Pairs of countries can have a trade imbalance with each other, and yet have an overall balance of trade, because of ...

David Ricardo is associated with .

Which of the following is true of countries with the highest trade openness as compared to countries with the lowest trade openness? Countries with the highest trade openness ...

Nowadays, how do economists explain trade complexity?

Until recently, how did economists characterize international trade?

Michael Porter is associated with ...

Let's say there is a world price for a good, Pw, that is lower than a country's domestic equilibrium price for the good without trade, Pe. What happens when the country goes from no trade to free trade?

Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. What happens to consumer surplus and to producer surplus (or profit)?

Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. What happens to price and to social surplus (equal to the sum of consumer surplus and producer surplus [or profit])?

What is the most likely response to a tariff (or tariff increase), by those opposing it?

During the three decades leading up to the U.S. Civil War (1830-1860), ...

What is a tax on imported goods (but not on domestically-produced goods) that completely reduces imports of that good?

For a short time following the Smoot-Hawley Tariff in 1930, ...

Let's say that a country in free trade that imports a particular good adopts a moderate tariff on that good. Which of the following doesn't happen to consumer surplus?

What is a quantitative restriction on imported goods?

Quotas work because of all of the following except ...

Surveys indicate that ...

What is a tax on imported goods (but not on domestically-produced goods) that only partially reduces imports of that good?

The nations of Argentina, Brazil, Uruguay and Venezuela, along with some others, are members of what trade agreement?

In the successful Uruguay Round of trade negotiations ...

The EU (European Union) is a Customs Union. Since it is a Customs Union, it probably features ...

In the successful Uruguay Round of trade negotiations ...

The nations of Indonesia, Malaysia, Singapore and Thailand, along with some others, are members of what trade agreement?

Compare trade today as governed by the World Trade Organization to trade in the past during the Golden Ages of China, Rome and Islam.

In the unsuccessful Doha Round of trade negotiations ...

Among the concerns of the World Trade Organization is anti-dumping legislation. What is anti-dumping legislation?

NAFTA recently renamed USMCA was world's first north-south trade agreement. That is a trade agreement between highly advanced countries US and Canada and a developing country Mexico. What kind of gain from trade was the idea of this trade agreement?

From the General Agreement on Tariffs and Trade (GATT) of 1947 through the organization of World Trade Organization (WTO) in 1995, the number of member countries ...

During the first four decades following the formation of the US 1790-1830

After other countries retaliated against the Smoot-Hawley Tariff in 1930...

Where was the first place in the world where slavery (meaning chattel slavery) was prohibited?

Using the example of pin manufacture, Adam Smith argued that productivity increased when ...