Practice Quiz 1

BusAd 175: Introduction to International Trade

Spring 2011

Course #3819

Apr 18 - Jun 8, 2011

Thanks for visiting my pages at the Glendale Community College web site. You can learn here about the Business Administration and Oceanography classes that I teach here, and my other professional interests (e.g., Financial Economics, Resource Economics, Physical Geology, Environmental Geology etc.). These pages, and the links therein, will also give you information about globalization, outsourcing, rational exhuberance, earthquakes, particularly the seismicity in Southern California, volcanism, plate tectonism, El Nino, global climate change, atmospheric and ocean circulation, energy and other earth resources, and the related environmental issues.

Home My Book My Physical Geology Pages My Oceanography-115 class My Environmental Geology Pages

Updated on 05/05/2015

My BusAd classes: BusAd-101 (General Business), BusAd-170 (International Business), BusAd-175 (International Trade)

BusAd-178 (International Finance)

Test 1 Sample

with your questions

True/False and/or Multiple Choice
Note: Treat each question-item below as either true or false.

On this page:

Gross domestic product measures ...

the gross profits from all final goods and services produced in an economy.

the gross weight of products that are exported from a domestic country.

the total value of all final goods and services produced within an economy.

the gross weight of products that are imported into a domestic country.

Service outsourcing refers to the case in which ...

a firm exports out of a country rather than selling products within a country.

consumers find out the source of where services are rendered.

a firm either moves part of its services out of the domestic country or hires a foreign company to provide its services.

a firm imports from another country rather than buying products from within a domestic country.

In contrast to 50 years ago, most exports from low and middle income countries are now classified as ...

mineral products.

manufactured products.

services.

agricultural and dairy products.

Most international trade today is classified as trade in ...

mineral products.

manufactured products.

services.

agricultural products.

dairy products.

The North American Free Trade Agreement ...

has helped Mexico and Canada export more to the U.S.

has shown that international borders no longer affect the amount of trade between countries.

has shown that cultural ties are more important in determining the amount of trade between countries than tariff rates.

has reduced tariffs and other trade restrictions among Canada, Mexico and the US.

Terms of trade is defined as ...

The tariffs on a country's imports divided by the tariffs imposed by other countries on its exports.

The price of a good at which countries agree to trade.

The price of a country's imports divided by the price of its exports.

The price of a country's exports divided by the price of its imports.

According to the standard trade model, which of the following is true about biased growth?

Export-biased growth makes the economy worse off because it increases income inequality.

Import-biased growth makes the economy worse off because it increases the overall national indebtedness.

Import-biased growth makes the economy better off because it encourages public consumption.

Export-biased growth makes the economy better off by bringing-in additional income from foreign countries.

According to the standard trade model, if export-biased growth occurs in a foreign country, then the country that imports the good will ...

import less of the good.

experience an increase in its terms of trade.

be worse off.

experience a decrease in its terms of trade.

What is the transfer problem?

The possibility that international transfers can affect the terms of trade.

Rich countries do not transfer a sufficient amount of money to poor countries.

The inappropriate application of money by the recipient of a transfer.

The severe indebtedness of some low-income countries.

What are the likely effects of an import tariff on steel imposed by the U.S.?

The relative world supply of steel remains constant and the relative world demand of steel falls.

The relative world supply of steel falls and the relative world demand of steel rises.

The relative world supply of steel rises and the relative world demand of steel falls.

The relative world supply of steel and the relative world demand of steel fall.

The WTO is likely to end-up finding the US in violation of its obligations as a member-nation if it can be shown that this action was unilateral and unwarranted.

The relative world supply of steel and the relative world demand of steel rise.

What would be the effects of an export subsidy on petroleum imposed by Russia?

The relative world supply of petroleum and the relative world demand of petroleum rise

The relative world supply of petroleum rises and the relative world demand of petroleum falls.

The relative world supply of petroleum remains constant and the relative world demand of petroleum falls.

The relative world supply of petroleum and the relative world demand of petroleum fall.

Home | My Book | My Oceanography Classes | My BusAd classes

This site was last updated on 05/05/15