ECO 336 USM Midterm Exam 2025
Questions and Answers
An important factor that increased international capital flows in the second half of the
nineteenth century was
A.technological innovations.
B.the rapid rate of East Asian economic growth.
C.the creation of the International Monetary Fund.
D.the creation of numerous regional trade agreements. - ....ANSWER ...-A
The four criteria for economic integration include trade flows, capital flows, people
flows, and the similarity of prices in separate markets.
True
False - ....ANSWER ...-True
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 rapidly than world output.
C. the trade-to-GDP ratios of most countries have fallen.
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,D. trade is less important to most nations' economies than in the early part of the
twentieth century.
E. world trade has grown more slowly than during the years leading up to World War II.
- ....ANSWER ...-B
Deep integration
A.is easier to achieve than shallow integration.
B.does not require changing domestic policies unrelated to tariffs and quotas.
C.requires cooperation with other national governments or international bodies.
D.is less controversial than shallow integration. - ....ANSWER ...-C
One important difference between the international economy of today and the economy
of 100 years ago is
A.
that price differences in different markets have narrowed.
B.
the presence of international bodies such as the IMF and World Bank.
C.
that capital is mobile.
D.
for the first time, technological innovations have reduced the barrier of distance.
E.
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,that labor is so much more mobile. - ....ANSWER ...-B
While the world was fairly integrated at the turn of the last century, most trade was in
agricultural and raw materials, whereas today manufactured consumer and producer
goods play a much greater role in determining exports and imports.
True
False - ....ANSWER ...-True
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. - ....ANSWER ...-C
One of the reasons we know that international labor mobility has been higher at other
times is because
A.
labor was important in agriculture.
B.
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, the population was younger.
C.
the percent of our population that was foreign born was higher.
D.
wages were lower. - ....ANSWER ...-C
Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2 billion
Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) assuming
Turkey has 10 billion Turkish Lira of output, or GDP. - ....ANSWER ...-Turkey's
Trade-to-GDP ratio = . 4
.
(Enter your response rounded to one decimal place.)
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. 0.5
B. 0.2
C. -0.1
D. 0.1 - ....ANSWER ...-A
Capital flows between countries are smaller than in past decades in absolute terms.
True
False - ....ANSWER ...-False
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 4
Questions and Answers
An important factor that increased international capital flows in the second half of the
nineteenth century was
A.technological innovations.
B.the rapid rate of East Asian economic growth.
C.the creation of the International Monetary Fund.
D.the creation of numerous regional trade agreements. - ....ANSWER ...-A
The four criteria for economic integration include trade flows, capital flows, people
flows, and the similarity of prices in separate markets.
True
False - ....ANSWER ...-True
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 rapidly than world output.
C. the trade-to-GDP ratios of most countries have fallen.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
,D. trade is less important to most nations' economies than in the early part of the
twentieth century.
E. world trade has grown more slowly than during the years leading up to World War II.
- ....ANSWER ...-B
Deep integration
A.is easier to achieve than shallow integration.
B.does not require changing domestic policies unrelated to tariffs and quotas.
C.requires cooperation with other national governments or international bodies.
D.is less controversial than shallow integration. - ....ANSWER ...-C
One important difference between the international economy of today and the economy
of 100 years ago is
A.
that price differences in different markets have narrowed.
B.
the presence of international bodies such as the IMF and World Bank.
C.
that capital is mobile.
D.
for the first time, technological innovations have reduced the barrier of distance.
E.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 2
,that labor is so much more mobile. - ....ANSWER ...-B
While the world was fairly integrated at the turn of the last century, most trade was in
agricultural and raw materials, whereas today manufactured consumer and producer
goods play a much greater role in determining exports and imports.
True
False - ....ANSWER ...-True
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. - ....ANSWER ...-C
One of the reasons we know that international labor mobility has been higher at other
times is because
A.
labor was important in agriculture.
B.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 3
, the population was younger.
C.
the percent of our population that was foreign born was higher.
D.
wages were lower. - ....ANSWER ...-C
Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2 billion
Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) assuming
Turkey has 10 billion Turkish Lira of output, or GDP. - ....ANSWER ...-Turkey's
Trade-to-GDP ratio = . 4
.
(Enter your response rounded to one decimal place.)
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. 0.5
B. 0.2
C. -0.1
D. 0.1 - ....ANSWER ...-A
Capital flows between countries are smaller than in past decades in absolute terms.
True
False - ....ANSWER ...-False
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 4
