ECN 607 Chapter Notes - Chapter 1: Economic Integration, Pearson Education, Association To Advance Collegiate Schools Of Business
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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
A) higher trade-to-GDP ratios.
B) lower trade-to-GDP ratios.
C) relatively greater capital outflows.
D) 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
A) exports divided by GDP.
B) imports divided by GDP.
C) exports plus imports divided by GDP.
D) 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
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Copyright © 2018 Pearson Education, Inc.
4) A relative measure of the importance of trade is
A) the dollar value of trade.
B) trade as a percentage of GDP.
C) the dollar value of trade adjusted for inflation.
D) 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
A) the creation of the International Monetary Fund.
B) the creation of numerous regional trade agreements.
C) the rapid rate of East Asian economic growth.
D) 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
A) less in 1900 than in 2010.
B) unimportant to global integration until the 1960s.
C) greater in 1900 than in 2010.
D) 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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Copyright © 2018 Pearson Education, Inc.
7) A major impact of the transatlantic telegraph was
A) a reduction in time required to complete a financial transaction between New York and
London
B) an increase in labor flows across the Atlantic.
C) a decrease in trade barriers between the United States and Europe.
D) an increase in trade conflicts between the United States and Europe.
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
A) around 1970.
B) around World War II.
C) around World War I.
D) 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
A) high rates of investment.
B) low rates of investment.
C) stock market bubbles.
D) 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
Document Summary
Chapter 1 the united states in a global economy. 1. 1 introduction: international economic integration: there are no questions for this section. 1. 2 elements of international economic integration: 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. Aacsb: application of knowledge: the trade-to-gdp ratio for a nation that had million in exports, million in imports, and gdp of ,000 million would be, 0. 1, 0. 2, 0. 5, -0. 1. Aacsb: application of knowledge: 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. 1: 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.
