COI 01 – The United States and the Global Economy
1. The physical export of motorcycles from the United States to Mexico best illustrates a:
2. The physical import of DVD players to the United States from Japan best illustrates a:
3. The spending by Americans while traveling in Europe best illustrates a:
COI 01 – The United States and the Global Economy
4. The emigration of software designers from India to the United States best illustrates a(n):
5. The purchase by an American firm of the right to produce a prescription drug patented in
Germany best illustrates a:
6. The business-to-business (B2B) retrieval of prices of foreign resources via the Internet best
illustrates a(n):
COI 01 – The United States and the Global Economy
7. The building of a production plant in China by an American firm best illustrates a(n):
8. Trade flows measure the:
9. Foreign currency exchanges and interest payments on foreign debt are examples of:
COI 01 – The United States and the Global Economy
10. The United States’ exports are approximately what percentage of U.S. GDP?
11. Which of the following statements is correct?
12. The United States’ most important trading partner in terms of dollar volume is:
COI 01 – The United States and the Global Economy
13. In terms of absolute volume of imports and exports, the world’s leading trading nation is:
14. Which of the following statements is correct?
15. Since 1975, United States exports and imports have:
COI 01 – The United States and the Global Economy
16. In recent years the United States has:
17. Approximately half of the U.S. international trade is with:
18. Which of the following is a true statement?
COI 01 – The United States and the Global Economy
19. As a percentage of GDP (total output), U.S. exports are:
20. The average U.S. tariff rate on imported goods is about:
21. The largest goods exports of the United States (in dollar volume) are:
COI 01 – The United States and the Global Economy
22. The largest goods imports of the United States (in dollar volume) are:
23. Which of the following has not been a facilitating factor in world trade?
24. In terms of absolute dollar volume, the world’s leading export nations are:
COI 01 – The United States and the Global Economy
25. Which of the following countries has recently emerged as one of the world’s top trading
26. U.S. tariffs on imported goods:
27. The world’s largest exporter (measured in total dollar volume) is:
COI 01 – The United States and the Global Economy
COI 01-10
28. A trade deficit occurs for a nation when it:
29. Which of the following concepts provides the basic rationale for international trade?
COI 01 – The United States and the Global Economy
30. The above data would graph as:
31. Refer to the above data. Alpha is a(n):
32. Refer to the above data. The domestic opportunity cost of producing 1 ton of steel in
Alpha is:
COI 01 – The United States and the Global Economy
33. Refer to the above data. The domestic opportunity cost of producing 1 ton of steel in
34. Refer to the above data. Alpha has a comparative advantage in producing:
35. Refer to the above data. On the basis of the above information:
COI 01 – The United States and the Global Economy
36. Refer to the above data. After specialization, Alpha will produce:
37. Refer to the above data. If Alpha and Omega each were producing at alternatives B before
trade, the gain from specialization and trade would be:
38. Refer to the above data. If Alpha was producing at alternative B and Omega was at
COI 01 – The United States and the Global Economy
COI 01-14
39. According to the concept of comparative advantage, a good should be produced in that
nation where:
40. The terms of trade:
Answer the question on the basis of the following production possibilities data for Landia and
Scandia:
COI 01 – The United States and the Global Economy
41. Refer to the above data. The domestic opportunity cost of 1 fish in Landia is:
42. Refer to the above data. The domestic opportunity cost of 1 fish in Scandia is:
43. Refer to the above data. On the basis of the production possibilities data shown:
COI 01 – The United States and the Global Economy
44. Refer to the above data. If Landia and Scandia fully specialize based on comparative
advantage, their aggregate output will be:
45. Refer to the above data. Assume that before specialization and trade Landia was
producing combination C and Scandia was producing combination B. If these two nations
now specialize completely based on with comparative advantage, the total gains from
specialization and trade would be:
46. Refer to the above data. Which of the following would be feasible terms of trade between
Landia and Scandia?
COI 01 – The United States and the Global Economy
47. The primary benefits of international trade include:
Answer the question on the basis of the following production possibilities tables for countries
Alpha and Beta:
48. Refer to the above tables. The domestic opportunity cost of one unit of X in Alpha is:
COI 01 – The United States and the Global Economy
49. Refer to the above tables. The domestic opportunity cost of one unit of X in Beta is:
50. Refer to the above tables. According to the concept of comparative advantage:
51. Refer to the above tables. Assume that before specialization both nations chose to produce
alternative B. The gains from specialization and trade would be:
COI 01 – The United States and the Global Economy
52. Refer to the above tables. Which one of the following terms of trade would be acceptable
to both countries?
53. Refer to the above domestic production possibilities curve for Karalex. The gain to
Karalex from specialization and international trade is represented by a move from:
COI 01 – The United States and the Global Economy
54. Renee earns $500 per hour in the courtroom as a trial lawyer; she can type up her legal
documents at a rate of 80 words per minute. Christopher has no training as a trial lawyer, but
can type legal documents at a rate of 50 words per minute for a wage of $30 per hour. Based
on the theory of comparative advantage:
55. Exchange rates are particularly important because:
56. If the equilibrium exchange rate changes so that it takes more dollars to buy a British
pound, then: