International Economics, 5e (Gerber)
Chapter 1 The United States in a Global Economy
1.1 Multiple Choice Questions
1) Countries such as the United States that have large populations tend to have
A) higher openness indicators.
B) lower openness indicators.
C) relatively greater capital outflows.
D) relatively smaller capital outflows.
E) None of the above.
Answer: B
Question Status: Previous Edition
2) The index of openness 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
Question Status: Previous Edition
3) The openness indicator is measured as
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
Question Status: Previous Edition
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
Question Status: Previous Edition
,5) An important factor that increased international capital flows in the second half of the
nineteenth century 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
Question Status: Previous Edition
6) Labor mobility was
A) less in 1900 than in 1999.
B) unimportant to global integration until the 1960s.
C) greater in 1900 than in 1999.
D) never controversial.
E) a brand new feature of the global economy in the twenty-first century.
Answer: C
Question Status: Previous Edition
7) A major impact of the transatlantic telegraph was
A) a reduction in time required to obtain market information and conclude a 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) None of the above.
Answer: A
, Question Status: Previous Edition
8) The openness indicator 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 1990.
Answer: C
Question Status: Previous Edition
9) Recent technological changes have had profound effects on the movement of capital
across international boundaries. One of the main effects has been
A) an increase in the transaction costs of moving capital.
B) a decrease in the transaction costs of moving capital.
C) a long-run decline in real interest rates.
D) a long-run increase in real interest rates.
E) None of the above.
Answer: B
Question Status: Previous Edition
10) Transaction costs include the costs of
A) wages paid to labor.
B) buying materials to be used as inputs.
C) electricity and other utilities used in production.
Chapter 1 The United States in a Global Economy
1.1 Multiple Choice Questions
1) Countries such as the United States that have large populations tend to have
A) higher openness indicators.
B) lower openness indicators.
C) relatively greater capital outflows.
D) relatively smaller capital outflows.
E) None of the above.
Answer: B
Question Status: Previous Edition
2) The index of openness 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
Question Status: Previous Edition
3) The openness indicator is measured as
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
Question Status: Previous Edition
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
Question Status: Previous Edition
,5) An important factor that increased international capital flows in the second half of the
nineteenth century 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
Question Status: Previous Edition
6) Labor mobility was
A) less in 1900 than in 1999.
B) unimportant to global integration until the 1960s.
C) greater in 1900 than in 1999.
D) never controversial.
E) a brand new feature of the global economy in the twenty-first century.
Answer: C
Question Status: Previous Edition
7) A major impact of the transatlantic telegraph was
A) a reduction in time required to obtain market information and conclude a 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) None of the above.
Answer: A
, Question Status: Previous Edition
8) The openness indicator 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 1990.
Answer: C
Question Status: Previous Edition
9) Recent technological changes have had profound effects on the movement of capital
across international boundaries. One of the main effects has been
A) an increase in the transaction costs of moving capital.
B) a decrease in the transaction costs of moving capital.
C) a long-run decline in real interest rates.
D) a long-run increase in real interest rates.
E) None of the above.
Answer: B
Question Status: Previous Edition
10) Transaction costs include the costs of
A) wages paid to labor.
B) buying materials to be used as inputs.
C) electricity and other utilities used in production.
