What would happen if the United States placed high tariffs on imported goods?

The United States economy would become less efficient

If a country has a current account deficit, which of the following must be true?

There is a surplus in the financial account

An increase in Japan’s demand for United States goods would cause the value of the dollar to

Appreciate because Japan would be buying more USD

What is a multinational corporation?

A company that has headquarters all over the world

Which of the following would cause the Dollar to increase in value compared to the Yen

An increase in interest rates in the United States

The gravity model explains why

trade between Sweden + Germany exceeds that Sweden + Spain

studbud

Development Economics and International Trade

23 termsStudBud Administration280 plays

An IB economics review

Flashcards23 cardsFPractice quizPHost liveL

Questions 23

Answers

1
What would happen if the United States placed high tariffs on imported goods?
United States exports would increase
Workers in the US would have more jobs in the long run
The United States economy would become less efficient
The United States standard of living would increase
2
Which of the following is not a factor of economic growth?
Institutional factors
Development factors
Demand factors
Supply factors
3
What is the correct label for the X axis
Quantity of Euros
Quantity of Dollars
4
What does the HDI measure
Happiness of people
How much money is made
Quality of life
Quality of education
5
What would occur if the international value of the U.S. dollar decreased
More gold would be imported into the U.S.
The trade deficit would increase
Americans would pay less for foreign goods
American exports would rise
6
If a country has a current account deficit, which of the following must be true?
The country must increase domestic interest rates
The country must limit foreign capital investment
There is a deficit in the financial account
There is a surplus in the financial account
7
What is shown in the graph
Economic development
Decrease in GDP
Increase in GNP
Economic growth
8
An increase in Japan’s demand for United States goods would cause the value of the dollar to
Depreciate because of inflation
Depreciate because the US money supply would increase
Appreciate because Japan would be buying more USD
Appreciate because Japan would be selling more USD
9
Which of the following is not a type of economic aid?
Tied aid
Long term loans
Commodity aid
Industry aid
10
What is a multinational corporation?
A company that only trades with 1 other country
A company that refuses to trade outside its country
A company that trades internationally
A company that has headquarters all over the world
11
Which of the following would cause the Dollar to increase in value compared to the Yen
The United States purchase of gold on the open market
An increase in the money supply in the United States
An increase in interest rates in the United States
An increase in the United States trade deficit with Japan
12
Which of the following does the HDI measure
Standard of living
All of the above
Lifespan
Literacy
13
Which of the following can help with economic development
All of the Above
Improved human capital
Government aid
Foreign investment
14
Which of the following is not a major concern of international economic theory?
Trade relations with China
Protectionism
Exchange rates
Balance of payments
15
What does the section labelled Z represent
Tariff revenue
Economic profit
Tariff price
Deadweight loss
16
The gravity model explains why
Capital rich countries export capital
Countries with large oil reserves tend to export oil
trade between Sweden + Germany exceeds that Sweden + Spain
Intra-industry trade is more important than other types
17
What is the most common measure of economic growth
GEM
GDI
GNP
GDP
18
Which of the following is not a factor for economic growth?
Natural resources
Technology
None of the above
Industry
19
What do the sections labelled X and Y represent
Tariff revenue
Tariff price
Economic profit
Deadweight loss
20
Which of the following is not a barrier to economic development
Foreign aid
Corruption
Poverty traps
Insufficient health care
21
What i the difference between an MDC and LDC
Education
Amount of growth per year
Average lifespan
Level of development
22
Which of the following is not a reason that countries trade
Comparative advantage
Political advantages
Different productivity of laborers in different countries
Lower prices in different countries
23
If the demand for the Yuan increases under a fixed interest rate, the value of the yuan
Revaluates
Appreciates
Depreciates
Devaluates

Development Economics and International Trade Flashcards | StudBud