International Economics Quiz

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1. | Question : | (TCO 8) Countries engaged in international trade specialize in production based on | | | Student Answer: | | relative levels of GDP. | | | | comparative advantage. | | | | relative exchange rates. | | | | relative inflation rates. | | Instructor Explanation: | Chapter 37 | | | | Points Received: | 1 of 1 | | Comments: | | | | 2. | Question : | (TCO 8) The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the | | | Student Answer: | | International Monetary Fund (IMF). | | | | World Trade Organization…show more content…
| | | | International Trade Commission (ITC). | | Instructor Explanation: | Chapter 37 | | | | Points Received: | 1 of 1 | | Comments: | | | | 3. | Question : | (TCO 9) Which of the following will generate a demand for Country X's currency in the foreign exchange market? | | | Student Answer: | | Travel by citizens of Country X in other countries | | | | The desire of foreigners to buy stocks and bonds of firms in Country X | | | | The imports of Country X | | | | Charitable contributions by Country X's citizens to citizens of developing nations | | Instructor Explanation: | Chapter 38 | | | | Points Received: | 1 of 1 | | Comments: | | | | 4. | Question : | (TCO 9) If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of the yen is | | | Student Answer: | | $.005. | | | | $.05. | | | | $.50. | | | | $5.…show more content…
| Question : | (TCO 9) In recent years, the United States has had large: | | | Student Answer: | | current account surpluses. | | | | current account deficits. | | | | balance of trade surpluses. | | | | balance of payments surpluses. | | Instructor Explanation: | Chapter 38. | | | | Points Received: | 1 of 1 | | Comments: | | | | 6. | Question : | (TCO 9) Answer the next question(s) on the basis of the following table which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place. (1)Quantity of Libras Demanded (billions) | (2)Dollar Price of Libras | (3)Quantity of Libras Supplied (billions) | 100200300400 | $5432 | 32520010075 | The equilibrium dollar price of libras is | | | Student Answer: | | $5. | | | | $4. | | | | $3. | | | | $2. | | Instructor Explanation: | Chapter 38 | | | | Points Received: | 1 of 1 | | Comments: | | | | 7. | Question : | (TCO 8) If a nation has a comparative advantage in the production of X, this means the nation

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