Content Options for Instructors (COI1) – The United States and the Global Economy
1. When a U.S. business builds a manufacturing plant in another country, this situation would
be an example of a:
2. The increase in immigration of workers into the United States would be an example of
a(n):
Content Options for Instructors (COI1) – The United States and the Global Economy
3. What type of economic flow would be illustrated by the export of a Boeing aircraft to Saudi
Arabia?
4. What type of economic flow would be illustrated by the purchase of European stocks and
bonds by a U.S. money manger?
5. Which would be the best example of a financial flow?
Content Options for Instructors (COI1) – The United States and the Global Economy
6. About what percentage of U.S. GDP were exports and imports of the United States in
2009?
7. In terms of total combined volume of exports and imports, which of the following countries
is the world’s leading trader?
8. The largest trading partner of the U.S. in 2009 was:
Content Options for Instructors (COI1) – The United States and the Global Economy
9. Since 1975, exports and imports of the U.S. have generally been:
10. Which nation has the largest share of exports as a percentage of its GDP?
11. About how many percent of U.S. exports in 2009 went to Canada?
Content Options for Instructors (COI1) – The United States and the Global Economy
12. About how many percent of U.S. imports in 2009 came from China?
13. Which of the following statements is true?
14. Which of the following was the leading export of the United States in 2009?
Content Options for Instructors (COI1) – The United States and the Global Economy
15. Which of the following was the leading import of the United States in 2009?
16. Which of the following is both a major import and export of the United States?
17. We say that the United States has a trade surplus when:
Content Options for Instructors (COI1) – The United States and the Global Economy
18. The United States has a trade deficit when U.S.:
19. Which of the following is true?
20. What is one way that the trade deficit of the United States is financed?
Content Options for Instructors (COI1) – The United States and the Global Economy
21. Which of the following factors has contributed significantly to more international trade
since the Second World War?
22. World trade has been primarily facilitated by:
23. Which of the following factors has greatly facilitated international trade since World War
II?
Content Options for Instructors (COI1) – The United States and the Global Economy
24. Which of the following nations was the world’s largest exporter in 2009?
25. A distinguishing characteristic of multinational corporations is that they:
26. Nations specialize and engage in trade to:
Content Options for Instructors (COI1) – The United States and the Global Economy
27. A country is said to have an absolute advantage over another producer of a good if that
country:
28. A country is said to have a comparative advantage over another producer of a good if that
country:
29. Adam Smith’s analysis of the benefits of trade focused on:
Content Options for Instructors (COI1) – The United States and the Global Economy
30. The economist who provided the enlightening insight about benefits from trade based on
comparative advantage was:
31. Specialization and international trade will:
32. How might a nation expand its production possibilities?
Content Options for Instructors (COI1) – The United States and the Global Economy
33. When a nation has a comparative advantage in some product this means that:
34. The central idea behind comparative advantage is that a nation should:
35. Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can
produce either 10 notepads or 40 pens. This implies that:
Content Options for Instructors (COI1) – The United States and the Global Economy
36. Assume that Nation A’s production possibilities is either 30 units of bricks or 50 units of
wheat. Nation B’s production possibilities is 20 units of bricks and 40 units of wheat. Which
Answer the following question on the basis of the data given for two regions, East and West,
of a hypothetical world. The nations have the production possibilities for units of food and
clothing given below.
37. Refer to the above data. In East, the relative cost of 1 unit of:
Content Options for Instructors (COI1) – The United States and the Global Economy
38. Refer to the above data. Which of the following is true?
39. Refer to the above data. Which statement about the two nations is correct based on the
principle of comparative advantage?
40. Refer to the above data. The mutually beneficial terms of trade will be:
Content Options for Instructors (COI1) – The United States and the Global Economy
41. Refer to the above data. Assume that East had initially produced its combination A and
that West had produced its combination C. If the two nations now specialized based on
comparative advantage, the gains (in their combined output) from specialization are:
42. Assume that there are two nations, Orca and Tapa. Each nation produces two products,
wheat and steel. Orca has a comparative advantage in the production of wheat. If the two
nations trade, the trade price of wheat in terms of steel will be:
43. Two nations, Alpha and Beta, can both produce steel. Alpha has a comparative advantage
in the production of steel if it:
Content Options for Instructors (COI1) – The United States and the Global Economy
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on
each nation’s production possibilities curve.
44. Refer to the above table. For OMICS, the opportunity cost of producing an additional unit
of A is:
45. Refer to the above table. For OMICS, the opportunity cost of producing an additional unit
of B is:
Content Options for Instructors (COI1) – The United States and the Global Economy
46. Refer to the above table. The domestic opportunity cost of producing more of product:
47. Based on the data in the above table, you can conclude that:
48. There will be gains from trade when:
Content Options for Instructors (COI1) – The United States and the Global Economy
49. The depreciation of the U.S. dollar relative to the French franc would make a vacation trip
to:
50. Suppose that the U.S. dollar (USD) and Singapore dollar (SGD) exchange rate is
USD1.00 for SGD1.80. Then a Singaporean coffee maker priced at SGD 90 dollars would
cost an American consumer how many U.S. dollars?
51. If the U.S. dollar and Mexican peso exchange rate shows that one peso is worth $0.12,
then an American computer that costs $1,500 would be worth how many Mexican pesos?
Content Options for Instructors (COI1) – The United States and the Global Economy
52. When the British import more American goods, this event:
53. If the exchange rate for the euro changes from $1 = 0.81 euro to $1 = 1.14 euro, then the:
54. At an exchange rate of 1 pound = $2.00, an American product is sold for the equivalent of
50 pounds in Britain. Assuming that the dollar price does not change, what will be the new
equivalent British-pound price if the exchange rate for a British pound rises to $3?
Content Options for Instructors (COI1) – The United States and the Global Economy
55. An increase in the American demand for Japanese goods will increase the:
56. When the dollar price of the euro increases, there has been a(n):
57. The foreign exchange rate is the: