ECON 340 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
As a share of national income, exports and imports are lowest for which of the following
countries:
A US
B Belgium
C Germany
D Mexico - Answers - US
If you were to try to make the case that international trade is not important for US
manufactures, which of the following facts could you use
A Trade in manufactures is declining
B Trade is becoming a smaller fraction of our economy
C Trade is less important for manufactures than it is for the rest of the US economy
D The US is less exposed to trade than most developed countries - Answers - The US
is less exposed to trade than most developed countries
For the US, International trade as a share of national income in last 40 years has
A Halved
B Tripled
C Remained same - Answers - Tripled
Over the past few decades, Imports have
A grown more than exports
B grown less than exports
C grown same as exports
D cannot be determined - Answers - grown more than exports
Exports are more important in the manufacturing sector than in the economy overall.
A True
B False
C Cannot be determined - Answers - True
Overall, exports are a more important part of the economy of
A high income countries
B low income countries
C middle income countries
D cannot be determined - Answers - high income countries
Between the two World Wars, as a share of the global economy, trade
,A increased
B decreased
C remained consistent
D cannot be determined - Answers - decreased
Average tariff rates
A Decreased between WW I and WW II
B Decreasing before WW I
C Increasing after WW II
D Decreasing after WW II - Answers - Decreasing after WW II
Export volumes start to deviate from their trend in
A 2000
B 1998
C 1980
D 2008 - Answers - 2008
Agricultural products account for
A Less than 10% of world trade
B Over half of world trade
C About a fifth of world trade
D Virtually no part of world trade - Answers - Less than 10% of world trade
Trade in services account for
A Over half of world trade
B A growing percent of world trade
C An unknown percent of world trade
D Virtually no part of world trade - Answers - A growing percent of world trade
Most products exported from North American countries are
A Manufactures
B Agricultural
C Fuel and mining - Answers - Manufactures
An important determinant of bilateral trade flow is/are
A Size
B Geography
C Both
D None - Answers - Both
Americas two top trading partners in 2012 were
A Canada and Germany
B China and Germany
C Canada and China
D Mexico and the United Kingdom - Answers - Canada and China
, When compared with trade's percent of GDP in rich countries, is trade usually a larger
or smaller percent of GDP for poor countries?
A Larger
B Small
C About the same - Answers - Small
What is the trend in trade for the United States?
A Exports have grown but not imports
B Imports have grown but not exports
C Both exports and imports have grown
D The trade deficit has shrunk even though both grew
E C and D are correct - Answers - Both exports and imports have grown
The US trade deficit has grown because United States
A Exports have grown but imports have grown faster
B Imports have grown but exports have stayed constant
C Imports have grown while exports have declined - Answers - Exports have grown but
imports have grown faster
Which is not a 'man-made' barrier to trade?
A Fuel prices
B Import Tarrifs
C Import Quotas
D Product Regulation - Answers - Fuel prices
Is there a correlation between trade volume and economic development?
A Yes, across all countries
B Yes, but only for small countries like South Korea
C Yes, but only in the past twenty years
D No, trade only depends on the goods a country has to trade - Answers - Yes, across
all countries
What is the largest component of world trade?
A Agriculture
B Fuels
C Manufacturing
D Services - Answers - Manufacturing
Which country is not among the US's top 5 trading partners?
A Saudi Arabia
B Germany
C Japan
D Mexico - Answers - Saudi Arabia
Currently, which country is the US's top trading partner?
A Brazil
ANSWERS
As a share of national income, exports and imports are lowest for which of the following
countries:
A US
B Belgium
C Germany
D Mexico - Answers - US
If you were to try to make the case that international trade is not important for US
manufactures, which of the following facts could you use
A Trade in manufactures is declining
B Trade is becoming a smaller fraction of our economy
C Trade is less important for manufactures than it is for the rest of the US economy
D The US is less exposed to trade than most developed countries - Answers - The US
is less exposed to trade than most developed countries
For the US, International trade as a share of national income in last 40 years has
A Halved
B Tripled
C Remained same - Answers - Tripled
Over the past few decades, Imports have
A grown more than exports
B grown less than exports
C grown same as exports
D cannot be determined - Answers - grown more than exports
Exports are more important in the manufacturing sector than in the economy overall.
A True
B False
C Cannot be determined - Answers - True
Overall, exports are a more important part of the economy of
A high income countries
B low income countries
C middle income countries
D cannot be determined - Answers - high income countries
Between the two World Wars, as a share of the global economy, trade
,A increased
B decreased
C remained consistent
D cannot be determined - Answers - decreased
Average tariff rates
A Decreased between WW I and WW II
B Decreasing before WW I
C Increasing after WW II
D Decreasing after WW II - Answers - Decreasing after WW II
Export volumes start to deviate from their trend in
A 2000
B 1998
C 1980
D 2008 - Answers - 2008
Agricultural products account for
A Less than 10% of world trade
B Over half of world trade
C About a fifth of world trade
D Virtually no part of world trade - Answers - Less than 10% of world trade
Trade in services account for
A Over half of world trade
B A growing percent of world trade
C An unknown percent of world trade
D Virtually no part of world trade - Answers - A growing percent of world trade
Most products exported from North American countries are
A Manufactures
B Agricultural
C Fuel and mining - Answers - Manufactures
An important determinant of bilateral trade flow is/are
A Size
B Geography
C Both
D None - Answers - Both
Americas two top trading partners in 2012 were
A Canada and Germany
B China and Germany
C Canada and China
D Mexico and the United Kingdom - Answers - Canada and China
, When compared with trade's percent of GDP in rich countries, is trade usually a larger
or smaller percent of GDP for poor countries?
A Larger
B Small
C About the same - Answers - Small
What is the trend in trade for the United States?
A Exports have grown but not imports
B Imports have grown but not exports
C Both exports and imports have grown
D The trade deficit has shrunk even though both grew
E C and D are correct - Answers - Both exports and imports have grown
The US trade deficit has grown because United States
A Exports have grown but imports have grown faster
B Imports have grown but exports have stayed constant
C Imports have grown while exports have declined - Answers - Exports have grown but
imports have grown faster
Which is not a 'man-made' barrier to trade?
A Fuel prices
B Import Tarrifs
C Import Quotas
D Product Regulation - Answers - Fuel prices
Is there a correlation between trade volume and economic development?
A Yes, across all countries
B Yes, but only for small countries like South Korea
C Yes, but only in the past twenty years
D No, trade only depends on the goods a country has to trade - Answers - Yes, across
all countries
What is the largest component of world trade?
A Agriculture
B Fuels
C Manufacturing
D Services - Answers - Manufacturing
Which country is not among the US's top 5 trading partners?
A Saudi Arabia
B Germany
C Japan
D Mexico - Answers - Saudi Arabia
Currently, which country is the US's top trading partner?
A Brazil
