AGB quiz 5 Questions with Correct
Answers Latest Updated 2023
The movement toward regional economic integration is most successful in - Answer-
Africa
An (-) has no barriers to trade between member countries... - Answer-Common market
A (-) entails even closer economic integration and cooperation than a common market -
Answer-Economic union
Linking neighboring countries economically and making them interdependent: - Answer-
creates incentives to increase political cooperation as well
The (-) is primarily a consultative rather than legislative body - Answer-European
Parliament
Three long term eu members; Great Britain, (-) and Sweden... - Answer-Denmark
The (-) was established to increase multinational cooperation... - Answer-Asia-pacific
economic cooperation
The emerging role of the (-) in competition policy suggests... - Answer-European
Country X and Country Y reach an agreement to boost bilateral trade. They agree to
remove all barriers to the trade of goods and services. They, however, are free to
determine their own trade policies with regard to nonmembers. Which level of economic
integration is this an example of? - Answer-free trade area
Which feature of a common market differentiates it from customs union - Answer-Ability
of factors of production to move freely between members
Assuming the 30-day forward exchange rate were $1 = ¥130 and the spot exchange
rate were $1 = ¥120, the dollar is selling at a _____ on the 30-day forward market. -
Answer-Discount
Which of the following refers to the simultaneous purchase and sale... - Answer-
Currency swap
(-) are exchange rates governing some specific... - Answer-Forward exchange rates
Assume that the current exchange rate is €1 = $1.50. If you exchange 1,000 euros for
dollars, you will receive ____. - Answer-$1,500
, The (-) is the rage at which foreign exchange dealer... - Answer-Spot exchange rate
The short-term movement of funds... - Answer-Currency speculation
Assume that an American company today invests....... - Answer-The dollar appreciates
against the Hungarian front
Which of the following is the most important foreign exchange trading center - Answer-
London
If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater
than the demand for it, what will happen? - Answer-The dollar will appreciate against
the yen
Assume that the law of one price holds. A shirt that retails for $120 in New York sells for
£60 in London. The exchange rate between the British pound and the dollar is £1 =
$1.50. Assuming away transportation costs and trade barriers, this creates a profit-
making opportunity called ____. - Answer-arbitrage
Free Trade - Answer-refers to a situation where a government does not attempt to
influence through quotas or duties what its citizens can buy from another country or
what they can produce and sell to another country
New Trade Theory - Answer-Paul Krugman; stresses that in some cases, countries
specialize in the production and export of particular products not because of underlying
differences in factor endowments but because in certain industries the world market can
support only a limited number of firms; at variance with the Heckscher-Ohlin theory
Mercentilism - Answer-it was in a country's best interests to maintain a trade surplus, to
export more than it imported; advocate for government intervention in trade to create
surplus
Zero-Sum Game - Answer-one in which a gain by one country results in a loss by
another
Absolute Advantage - Answer-a country has an absolute advantage in the production of
a product when it is more efficient than any other country at producing it
constant returns to specialization - Answer-the units of resources required to produce a
good (cocoa or rice) are assumed to remain constant no matter where one is on a
country's production possibility frontier (PPF)
Economies of Scale - Answer-unit cost reductions associated with a large scale of
output.
First-mover advantages - Answer-the economic and strategic advantages that accrue to
early entrants into an industry.
Answers Latest Updated 2023
The movement toward regional economic integration is most successful in - Answer-
Africa
An (-) has no barriers to trade between member countries... - Answer-Common market
A (-) entails even closer economic integration and cooperation than a common market -
Answer-Economic union
Linking neighboring countries economically and making them interdependent: - Answer-
creates incentives to increase political cooperation as well
The (-) is primarily a consultative rather than legislative body - Answer-European
Parliament
Three long term eu members; Great Britain, (-) and Sweden... - Answer-Denmark
The (-) was established to increase multinational cooperation... - Answer-Asia-pacific
economic cooperation
The emerging role of the (-) in competition policy suggests... - Answer-European
Country X and Country Y reach an agreement to boost bilateral trade. They agree to
remove all barriers to the trade of goods and services. They, however, are free to
determine their own trade policies with regard to nonmembers. Which level of economic
integration is this an example of? - Answer-free trade area
Which feature of a common market differentiates it from customs union - Answer-Ability
of factors of production to move freely between members
Assuming the 30-day forward exchange rate were $1 = ¥130 and the spot exchange
rate were $1 = ¥120, the dollar is selling at a _____ on the 30-day forward market. -
Answer-Discount
Which of the following refers to the simultaneous purchase and sale... - Answer-
Currency swap
(-) are exchange rates governing some specific... - Answer-Forward exchange rates
Assume that the current exchange rate is €1 = $1.50. If you exchange 1,000 euros for
dollars, you will receive ____. - Answer-$1,500
, The (-) is the rage at which foreign exchange dealer... - Answer-Spot exchange rate
The short-term movement of funds... - Answer-Currency speculation
Assume that an American company today invests....... - Answer-The dollar appreciates
against the Hungarian front
Which of the following is the most important foreign exchange trading center - Answer-
London
If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater
than the demand for it, what will happen? - Answer-The dollar will appreciate against
the yen
Assume that the law of one price holds. A shirt that retails for $120 in New York sells for
£60 in London. The exchange rate between the British pound and the dollar is £1 =
$1.50. Assuming away transportation costs and trade barriers, this creates a profit-
making opportunity called ____. - Answer-arbitrage
Free Trade - Answer-refers to a situation where a government does not attempt to
influence through quotas or duties what its citizens can buy from another country or
what they can produce and sell to another country
New Trade Theory - Answer-Paul Krugman; stresses that in some cases, countries
specialize in the production and export of particular products not because of underlying
differences in factor endowments but because in certain industries the world market can
support only a limited number of firms; at variance with the Heckscher-Ohlin theory
Mercentilism - Answer-it was in a country's best interests to maintain a trade surplus, to
export more than it imported; advocate for government intervention in trade to create
surplus
Zero-Sum Game - Answer-one in which a gain by one country results in a loss by
another
Absolute Advantage - Answer-a country has an absolute advantage in the production of
a product when it is more efficient than any other country at producing it
constant returns to specialization - Answer-the units of resources required to produce a
good (cocoa or rice) are assumed to remain constant no matter where one is on a
country's production possibility frontier (PPF)
Economies of Scale - Answer-unit cost reductions associated with a large scale of
output.
First-mover advantages - Answer-the economic and strategic advantages that accrue to
early entrants into an industry.
