MCQs of Economics – The International Economy And Globalization

A primary reason why nations conduct international trade is because:

A main advantage of specialization results from:

International trade in goods and services is sometimes used as a substitute for all of the following except:

If a nation has an open economy it means that the nation:

International trade forces domestic firms to become more competitive in terms of:

The movement to free international trade is most likely to generate short-term unemployment in which industries:

International trade is based on the idea that:

Arguments for free trade are sometimes disregarded by politicians because:

Which American industry has least been affected by import competition in recent years:

The largest amount of trade with the United States in recent years has been conducted by:

Increased foreign competition tend to:

For the United states, exports plus imports are about _____ of its gross national product

Major trading partners of the United States including all of the following countries except:

Free traders maintain that an open economy is advantageous is that it provides all of the following except:

Recent pressures for protectionism in the United States have been motivated by all of the following except:

International trade tends to cause welfare losses to at least some groups in a country

For the United States automobiles are:

A feasible effect of international trade is that a (an):

International trade in goods and services tends to:

The real income of domestic producers and consumers can be increased by:

For the United States, commercial jetliners are:

Technological improvements are similar to international trade since they both:

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

A reduced share of the world export market for the United States would be attributed to:

The most wave of globalization which began in the 1980s has emphasized the outsourcing of:

The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the:

A significant portion of actual world trade patterns results from:

David Ricardo’s theory in favour of free trade uses the ideal of:

A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country

Term of trade for a country are the ratio of ____ to ____

One of the main advantages of trade economists suggest is:

The term tariff, as used in international trade refers to:

If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of:

Government payments made to domestic firms in order to encourage exports are called:

Tariffs are used to protect infant industries these industries are those which:

Economists suggest that an optimum tariff would be one which reduce imports to a point where:

Economic integration:

If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a:

When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call:

When countries from large trading blocs like the EU, the size of the bloc has the effect of improving their

What is not a feature of the EU as a single market?

Which of the following is not an argument for protectionism?

A demand switching policy could be

Free trade is based on the principle of:

If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is:

Tariffs:

The terms of trade measure:

In a floating exchange rate system:

The marginal propensity of consume is equal to:

If there is a balance of payments deficit then in a floating exchange rate system:

To prevent the external value of the currency from falling the government might:

International specialization takes place because of

International difference is opportunity costs lead to countries acquiring:

If a country does not have an absolute cost advantage in the production of any good, there is no incentive to trade

The main cause of different relative costs between countries are:

The level of the equilibrium exchange rate offsets international differences in:

International trade can never hurt any people

The imposition of a tariff causes consumption to _____ and imports to _____

A tariff causes domestic firms to ____ and consumers to:

Tariffs always distort trade and are never justified

An optimal tariff is one which reduces imports to the level at which ____ equals ____

If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from:

Export subsidies do not involve waste

Economic transition involves high inflation because _____ and ______

Output fell sharply in the transition economies because:

Most transition economies are seeking membership of the EU

All of the following represent obstacles to LDC development except

LDCs often have a comparative advantage in the production of:

LDCs are reluctant to pursue development through the export of primary products because of ____ and _____

Buffer stocks increase price volatility in an unstable market

Import substitution is the replacement of ____ by domestic production _____ protection of _____

If a country has a burden of debt it cannot sustain it can:

If an LDC chooses structural adjustment as a strategy for development, it will nationalize its principle insutries