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Basics of International Economics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What is defined as the economic mixing and interdependence of economies across the world through an escalation of cross-cultural movement of goods, services, technologies and wealth?

Question 2 2. Why is the Customs Border Patrol relevant to a company that wants to export to the U.S.?

Question 3 3. What international organization oversees the rules of trade between nations?

Question 4 4. Kait can make 8 TV shows and 1 movie, but Jess can make 6 TV shows and 2 movies. Who should make movies, and why?

Question 5 5.

Assume the following exchange rates:

1 Dollar = 102 Japanese Yen

1 Dollar = 0.6 British Pound

1 Dollar = 0.91 Swiss Franc

1 Dollar = 13 Pesos

Which of the following is the least amount of money?

Page 2

Question 6 6. If Italy has a comparative advantage over France in the production of pasta, then _____.

Question 7 7. If Jim can make 8 TV shows and Sam can make 4 TV shows, who has the absolute advantage?

Question 8 8. What is defined as large-scale departure of companies, assets, and wealth from a country due to economic instability or the opportunity for cheaper production?

Question 9 9. Which of the following is an example of importing?

Question 10 10. A factory in the United States is deciding whether or not to use a new facility to produce cars, or clothing. The cars will cost more than the clothing to manufacture, but will sell for significantly more as well. Which item has the lowest opportunity cost?

Page 3

Question 11 11. Which of the following is FALSE about economic integration?

Question 12 12. What is specialization?

Question 13 13. What organization is involved with the regulation of international trade between its members?

Question 14 14. What is defined as the portion of a market controlled by a particular entity?

Question 15 15. Why is GATT relevant for the international system?

Page 4

Question 16 16. What is a comparative advantage?

Question 17 17. How many trading parties exist in a bilateral trade agreement?

Question 18 18. All of the following are types of exchange rates that countries can use, except:

Question 19 19. Which of the following organizations governs U.S. exports?

Question 20 20. Which of the following is an example of exporting?

Page 5

Question 21 21. Why is the World Trade Organization relevant to the global economic system?

Question 22 22. What is the difference between an absolute and comparative advantage?

Question 23 23. Which exchange rate would most likely be used for a good or service that will be delivered at a future date?

Question 24 24. What is defined as each member of the trade agreement making economic gain from the agreement?

Question 25 25. Which of the following best explains why a country might specialize in the production of certain goods and/or services?

Page 6

Question 26 26. Which of the following statements regarding an exchange rate is not true?

Question 27 27. Which of these is NOT an argument against economic globalization?

Question 28 28. What is an absolute advantage?

Question 29 29. How do tariffs make domestic goods more competitive?

Question 30 30. What is defined as the bringing in of foreign goods into an economy?

Basics of International Economics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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