ECO 336 INTERNATIONAL ECONOMICS EXAM
LATEST 2026 WITH ACTUAL QUESTIONS AND
VERIFIED CORRECT ANSWERS ALREADY
GRADED A+
◉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
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.
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.
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
◉A major impact of the transatlantic telegraph was
A.
a decrease in trade barriers between the United States and Europe.
B.
a reduction in time required to obtain market information and conclude a
transaction between New York and London
LATEST 2026 WITH ACTUAL QUESTIONS AND
VERIFIED CORRECT ANSWERS ALREADY
GRADED A+
◉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
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.
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.
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
◉A major impact of the transatlantic telegraph was
A.
a decrease in trade barriers between the United States and Europe.
B.
a reduction in time required to obtain market information and conclude a
transaction between New York and London
