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International Economics, 6e (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.

E) None of the above.

Answer: B

Topic: Elements of International Economic Integration



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



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.

E) exports divided by imports.

Answer: C

Topic: Elements of International Economic Integration



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.

E) None of the above.

Answer: B

Topic: Elements of International Economic Integration

,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.

E) the creation of the World Bank.

Answer: D

Topic: Elements of International Economic Integration



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.

E) a brand new feature of the global economy in the twenty-first century.

Answer: C

Topic: Elements of International Economic Integration



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.

E) that nations abandoned the gold standard.

, Answer: A

Topic: Elements of International Economic Integration



8) The trade-to-GDP ratio for the United States reached its lowest point of the last 100
years

A) around 1900.

B) around 1970.

C) around World War II.

D) around World War I.

E) around 2008.

Answer: C

Topic: Elements of International Economic Integration



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.

E) no international trade.

Answer: A

Topic: Elements of International Economic Integration

10) 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 slowly than during the years leading up to World War II.

C) the trade-to-GDP ratios of most countries have fallen.