ECO 336 USM FINAL PAPER 2026 FULL
Q&A STUDY GUIDE GRADED A+
◉The four criteria for economic integration include trade flows,
capital flows, people flows, and the similarity of prices in separate
markets.
True
False Answer: True
◉Since the end of World War II,
A. world trade has grown more slowly than world GDP in the same
time period.
B. world trade has grown more rapidly than world output.
C. the trade-to-GDP ratios of most countries have fallen.
D. trade is less important to most nations' economies than in the
early part of the twentieth century.
E. world trade has grown more slowly than during the years leading
up to World War II. Answer: B
◉Deep integration
A.is easier to achieve than shallow integration.
,B.does not require changing domestic policies unrelated to tariffs
and quotas.
C.requires cooperation with other national governments or
international bodies.
D.is less controversial than shallow integration. Answer: C
◉One important difference between the international economy of
today and the economy of 100 years ago is
A.
that price differences in different markets have narrowed.
B.
the presence of international bodies such as the IMF and World
Bank.
C.
that capital is mobile.
D.
for the first time, technological innovations have reduced the barrier
of distance.
E.
that labor is so much more mobile. Answer: B
◉While the world was fairly integrated at the turn of the last
century, most trade was in agricultural and raw materials, whereas
,today manufactured consumer and producer goods play a much
greater role in determining exports and imports.
True
False Answer: True
◉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
◉One of the reasons we know that international labor mobility has
been higher at other times is because
A.
labor was important in agriculture.
B.
the population was younger.
C.
, the percent of our population that was foreign born was higher.
D.
wages were lower. Answer: C
◉Suppose Turkey has exports of 2 billion Turkish Lira, while its
imports are 2 billion Turkish Lira. Calculate Turkey's "Index of
Openness" (Trade-to-GDP ratio) assuming Turkey has 10 billion
Turkish Lira of output, or GDP. Answer: Turkey's Trade-to-GDP ratio
=.4
.
(Enter your response rounded to one decimal place.)
◉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. 0.5
B. 0.2
C. -0.1
D. 0.1 Answer: A
◉Capital flows between countries are smaller than in past decades
in absolute terms.
True
False Answer: False
Q&A STUDY GUIDE GRADED A+
◉The four criteria for economic integration include trade flows,
capital flows, people flows, and the similarity of prices in separate
markets.
True
False Answer: True
◉Since the end of World War II,
A. world trade has grown more slowly than world GDP in the same
time period.
B. world trade has grown more rapidly than world output.
C. the trade-to-GDP ratios of most countries have fallen.
D. trade is less important to most nations' economies than in the
early part of the twentieth century.
E. world trade has grown more slowly than during the years leading
up to World War II. Answer: B
◉Deep integration
A.is easier to achieve than shallow integration.
,B.does not require changing domestic policies unrelated to tariffs
and quotas.
C.requires cooperation with other national governments or
international bodies.
D.is less controversial than shallow integration. Answer: C
◉One important difference between the international economy of
today and the economy of 100 years ago is
A.
that price differences in different markets have narrowed.
B.
the presence of international bodies such as the IMF and World
Bank.
C.
that capital is mobile.
D.
for the first time, technological innovations have reduced the barrier
of distance.
E.
that labor is so much more mobile. Answer: B
◉While the world was fairly integrated at the turn of the last
century, most trade was in agricultural and raw materials, whereas
,today manufactured consumer and producer goods play a much
greater role in determining exports and imports.
True
False Answer: True
◉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
◉One of the reasons we know that international labor mobility has
been higher at other times is because
A.
labor was important in agriculture.
B.
the population was younger.
C.
, the percent of our population that was foreign born was higher.
D.
wages were lower. Answer: C
◉Suppose Turkey has exports of 2 billion Turkish Lira, while its
imports are 2 billion Turkish Lira. Calculate Turkey's "Index of
Openness" (Trade-to-GDP ratio) assuming Turkey has 10 billion
Turkish Lira of output, or GDP. Answer: Turkey's Trade-to-GDP ratio
=.4
.
(Enter your response rounded to one decimal place.)
◉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. 0.5
B. 0.2
C. -0.1
D. 0.1 Answer: A
◉Capital flows between countries are smaller than in past decades
in absolute terms.
True
False Answer: False
