Econ 333 Fall 2020 Sample Exam 1 Review Material

Econ 333 Fall 2020 Sample Exam 1 Review Material Exam Review Material (1) Globalization is most accurately defined as: A) A process of interaction and integration among people, firms, and governments of different nations, driven by international trade and investment and aided by information technology. B) An ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication. C) Entailing the Americanization of the world through mechanisms like the WTO, IMF and McDonald’s, all backed up by U.S. military power. D) All of the above are accurate definitions of globalization. E) None of the above. (2) After world war two, the pace of globalization increased due to: A) Many countries’ desire to achieve economic isolationism. B) Worldwide decreases in average tariff levels. C) Rising communication and transportation costs. D) All of the above contributed to the increased pace of globalization post WWII. (3) Barriers to trade A) include government policies such as tariffs and quotas. B) have been falling with technological improvements in transportation and communication. C) have risen since World War II as many countries have imposed higher tariffs. D) Two of the above are true. (4) The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that: A) GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located. B) GNP is always bigger than GDP. C) GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located. D) Two of the above are true. E) None of the above. (5) Which of the following is true? A) Much of the trade of the European Union (EU) countries is with EU countries. B) Industrialized countries tend to trade relatively little and largely with developing countries. C) Developing countries in Africa and South America tend to trade the most and largely with themselves. D) All of the above are true. (6) Which of the following is included in Germany's GDP? i. BMWs produced in a German owned factory in South Carolina ii. The value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. China dishes produced by the English owned Wedgewood Company at a factory in Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above. (7) In 2012, Australia exported goods and services worth $1.84 trillion and imported goods and services worth $2.52 trillion. That resulted in a trade deficit of $0.68 trillion. In the same year, Australian Gross Domestic Product equaled $14.61 trillion. The index of openness for Australia in 2012 is _________. This indicates that Australia is relatively ________ to trade. A) 12.59 ; closed B) 12.59 ; open C) 17.24 ; open D) 17.24 ; closed E) None of the answers. (8) ________ analysis by economists refers to the attempt to answer questions such as what are the effects of a tax on production and consumption decisions. A) Positive B) Negative C) Normative D) Investigative (9) ________ analysis by economists refers to the attempt to answer questions such as should a tax be imposed. A) Positive B) Negative C) Normative D) Investigative (10) If individuals have money illusion then they: A) Think that money is worthless. B) Ignore the effects on their income or wealth of some price changes in the economy. C) They base their production and consumption decisions on relative rather than absolute prices. D) Both B and C. E) None of the above.