International Trade. 1. Currently, what percentage of global GDP comes from wealthier countries?. 80 % 50 % 60 % 40 % 70 % . 2. Developing countries have a per capita GDP between. $ 5,000 and $15,000 $ 4,000 and $20,000 $ 10,000 and $20,000 $ 3,000 and $10,000
c. South Korea
a. Henry Paulson
b. Alan Greenspan
c. Paul Wolfowitz
d. Robert Zoellick
e. Ben Bernanke
10. Which country has the greatest say in the International Monetary Fund? (The voting weight accorded each member of the International Monetary Fund is based upon the size of its monetary contribution. )
a. the United Kingdom
c. the United States
12. Which of the following is true regard trends in increasing income inequality? THINK about the emailed PPT: Lorenz Curve = more bowed; Gini Coefficient closer to1 (or 100 as in percent) = absolute inequality!
a. Western nations have experienced larger population growth than the rest of the world.
b. Non-western nations have experienced large population growth.
c. Non-western nations have focused on providing technology and services.
d. Non-western nations have developed faster than western nations.
e. Western nations have developed much slower than the rest of the world.
14. Due to low wages and poor quality of life, people in less-developed countries who are educated abroad are reluctant to return to their home country. This problem is known as
a. the free-rider problem.
b. the law of diminishing returns.
c. the principal-agent problem.
d. capital exodus.
e. brain drain.
a. It does not consider indicators of development like health and education.
b. It does not account for goods which are traded on the black market.
c. It required lots of technical and bureaucratic resources to calculate.
d. It does not account for good which are not traded (like the fruits of subsistence agriculture or the clothes your mother washed for you to wear today.)
e. It is difficult to calculate for large populations.
a. one good is traded for another.
b. the government trades silver for currency.
c. one currency is traded for another.
d. factors of production are paid.
e. a good is one country is traded for currency in another.
17.If the exchange rate goes from $1 per euro to $2 per euro, economists say that the
a. their imports will rise.
b. net capital outflows will decrease.
c. domestic goods will be more expensive.
d. their exports will rise.
e foreign goods will be cheaper.
a. United States\' dollar.
b. British pound.
c. Swiss franc.
d. Japanese yen.
a. balance of trade.
b. balance of payments.
c. current account.
d. balance of services.
e. capital account.
a. Imports are expensive.
b. Exports are cheap.
c. Exports are greater than imports.
d. The terms of trade index is greater than 100.
e. There is a greater demand for domestic currency in the foreign exchange market
a. Smoot-Hawley Act.
b. Celler-Kefauver Act.
c. Wheeler-Lea Act.
d. Taft-Hartley Act.
e. Humphrey-Hawkins Act.
a. creation of an institution to resolve trade disputes.
b. gradual elimination of export tariffs.
c. gradual elimination of all tariffs and barriers to trade.
d. creation of an institution to manage levels of trade.
e. gradual progression towards sustainable levels of tariffs among member nations.
a. It focused on reciprocity and non-discrimination.
b. It eliminated all tariffs.
c. It eliminated all trade barriers.
d. It created an independent dispute resolution body.
e. It established a code of conduct for trade relations.
a. European Atomic Energy Community.
b. European Defense Community.
c. European Coal and Steel Community.
d. European Economic Community.
e. European Political Community.
a. lowering unemployment due to specialization.
b. minimizing dependence on other nations.
c. improving national security.
d. fostering infant industries.
e. achieving lower prices.