ECO 336 CHAPTER 1 TEST QUESTIONS AND
ANSWERS
When one contrasts the contemporary worldwide capital flows with the capital
flows of the past periods, - ANSWER All the above.
Free trade in goods is likely to - ANSWER All the above.
The elimination or reduction of barriers to trade caused by domestic policies
unrelated to trade is referred to as - ANSWER Deep Integration
Suppose Turkey exports 2 billion Turkish Lira, and imports 2 billion Turkish
Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) if Turkey
produces 10 billion Turkish Lira of output, or GDP. - ANSWER 0.4
When capital is allowed to flow freely among countries, it is expected that
capital will flow from - ANSWER countries with surplus savings and capital to
countries with low savings and capital.
The International Monetary Fund (IMF), the World Bank, the General
Agreement on Tariffs and Trade (GATT) were instituted - ANSWER after
World War II.
Statistical empirical evidence consistently shows that countries that are more
open - ANSWER tend to grow faster than countries that are closed.
Elimination of barriers to trade (tariffs and quotas) are referred to as _________
integration. - ANSWER shallow.
Negotiation over domestic policies that impact international trade are referred to
as ____________
integration. - ANSWER deep.
ANSWERS
When one contrasts the contemporary worldwide capital flows with the capital
flows of the past periods, - ANSWER All the above.
Free trade in goods is likely to - ANSWER All the above.
The elimination or reduction of barriers to trade caused by domestic policies
unrelated to trade is referred to as - ANSWER Deep Integration
Suppose Turkey exports 2 billion Turkish Lira, and imports 2 billion Turkish
Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) if Turkey
produces 10 billion Turkish Lira of output, or GDP. - ANSWER 0.4
When capital is allowed to flow freely among countries, it is expected that
capital will flow from - ANSWER countries with surplus savings and capital to
countries with low savings and capital.
The International Monetary Fund (IMF), the World Bank, the General
Agreement on Tariffs and Trade (GATT) were instituted - ANSWER after
World War II.
Statistical empirical evidence consistently shows that countries that are more
open - ANSWER tend to grow faster than countries that are closed.
Elimination of barriers to trade (tariffs and quotas) are referred to as _________
integration. - ANSWER shallow.
Negotiation over domestic policies that impact international trade are referred to
as ____________
integration. - ANSWER deep.
