ECO 336 EXAMS 2025 QUESTIONS
AND ANSWERS
One of the reasons we know that international labor mobility has been higher at other
times is because
A.
the percent of our population that was foreign born was higher.
B.
the population was younger.
C.
labor was important in agriculture.
D.
wages were lower. - ....ANSWER ...-A.
the percent of our population that was foreign born was higher.
Capital flows between countries are smaller than in past decades in absolute terms.
True
False - ....ANSWER ...-False
Most of what we buy and sell never makes it out of domestic markets.
True
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,False - ....ANSWER ...-True
A relative measure of the importance of trade is
A.
the dollar value of trade adjusted for inflation.
B.
trade as a percentage of investment.
C.
the dollar value of trade.
D.
trade as a percentage of GDP. - ....ANSWER ...-trade as a percentage of GDP.
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.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 2
,E.
that labor is so much more mobile. - ....ANSWER ...-the presence of international
bodies such as the IMF and World Bank.
Domestic agricultural subsidies intended to support the nation's farmers would not be
considered a trade barrier so would not be disputed internationally.
True
False - ....ANSWER ...-False
The elimination or reduction of trade barriers caused by non-trade-related domestic
policies is referred to as
A.
deep integration.
B.
shallow integration.
C.
quota reduction.
D.
regional trade integration. - ....ANSWER ...-deep integration
The International Monetary Fund (IMF), the World Bank, the General Agreement on
Tariffs and Trade (GATT) were formed
A.
after World War I.
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, B.
to respond to the formation of the European Community in 1957.
C.
before 1900.
D.
after World War II. - ....ANSWER ...-after World War II
An example of foreign direct investment is
A.
a Mexican buying dollars for pesos.
B.
buying stock in a German company.
C.
building a Starbucks shop in Canada.
D.
All of the above. - ....ANSWER ...-building a Starbucks shop in Canada.
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
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 4
AND ANSWERS
One of the reasons we know that international labor mobility has been higher at other
times is because
A.
the percent of our population that was foreign born was higher.
B.
the population was younger.
C.
labor was important in agriculture.
D.
wages were lower. - ....ANSWER ...-A.
the percent of our population that was foreign born was higher.
Capital flows between countries are smaller than in past decades in absolute terms.
True
False - ....ANSWER ...-False
Most of what we buy and sell never makes it out of domestic markets.
True
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
,False - ....ANSWER ...-True
A relative measure of the importance of trade is
A.
the dollar value of trade adjusted for inflation.
B.
trade as a percentage of investment.
C.
the dollar value of trade.
D.
trade as a percentage of GDP. - ....ANSWER ...-trade as a percentage of GDP.
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.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 2
,E.
that labor is so much more mobile. - ....ANSWER ...-the presence of international
bodies such as the IMF and World Bank.
Domestic agricultural subsidies intended to support the nation's farmers would not be
considered a trade barrier so would not be disputed internationally.
True
False - ....ANSWER ...-False
The elimination or reduction of trade barriers caused by non-trade-related domestic
policies is referred to as
A.
deep integration.
B.
shallow integration.
C.
quota reduction.
D.
regional trade integration. - ....ANSWER ...-deep integration
The International Monetary Fund (IMF), the World Bank, the General Agreement on
Tariffs and Trade (GATT) were formed
A.
after World War I.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 3
, B.
to respond to the formation of the European Community in 1957.
C.
before 1900.
D.
after World War II. - ....ANSWER ...-after World War II
An example of foreign direct investment is
A.
a Mexican buying dollars for pesos.
B.
buying stock in a German company.
C.
building a Starbucks shop in Canada.
D.
All of the above. - ....ANSWER ...-building a Starbucks shop in Canada.
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
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 4
