Chapter 2: International Economic Institutions since World War II (3 Questions)
1.) The Bretton Woods Conference of 1944 resulted in the creation of a number of global
organizations. Which are two of them?
a. The World Trade Organization and the International Monetary Fund.
b. The International Monetary Fund and the World Bank
c. The World Bank and the OECD
d. The OECD and the World Trade Organization
2.) One type of International Economic Institutions are “(i)nternational trade agreements involving a
few nations (regional trade alliances or trade blocs)”. Which of the following is a list of
institutions that are only of this type?
a. APEC, MERCOSUR, NAFTA, OPEC
b. APEC, EU, MERCOSUR, NAFTA
c. MERCOSUR, NAFTA, OPEC, WTO
d. MERCOSUR, NAFTA, OPEC, IBRD
Notes:
International Trade Agreements: NAFTA, MERCOSUR, APEC, EU
Global Trade Organizations and others: OPEC, ITU, IBWC, IMF, WTO
3.) International Economic Institutions provide a Public Good in terms of Order and Stability. Which
are the two characteristics of a Public Good?
a. Excludability and Rivalry
b. Non- Excludability and Rivalry
c. Excludability and Non- Rivalry
d. Non- Excludability and Non- Rivalry
Notes:
Public goods, cannot be non-excludable since the normal price mechanism doesn’t work and Non –
rivalry, because the good can’t be diminished by consumption
Chapter 3: Comparative Advantage and the Gains from Trade (3 Questions)
4.) In the Ricardian trade model, if two countries go from autarky to free trade with each other they
will both have “gains form trade”. What is a way of describing the gains from trade?
a. Both countries consume outside their own production possibilities curves.
b. Both countries consume inside their own production possibility curves.
c. Both countries consume outside their own free-trade consumption possibilities curves.
d. Both countries consume inside their own free-trade consumption possibilities curves.
1.) The Bretton Woods Conference of 1944 resulted in the creation of a number of global
organizations. Which are two of them?
a. The World Trade Organization and the International Monetary Fund.
b. The International Monetary Fund and the World Bank
c. The World Bank and the OECD
d. The OECD and the World Trade Organization
2.) One type of International Economic Institutions are “(i)nternational trade agreements involving a
few nations (regional trade alliances or trade blocs)”. Which of the following is a list of
institutions that are only of this type?
a. APEC, MERCOSUR, NAFTA, OPEC
b. APEC, EU, MERCOSUR, NAFTA
c. MERCOSUR, NAFTA, OPEC, WTO
d. MERCOSUR, NAFTA, OPEC, IBRD
Notes:
International Trade Agreements: NAFTA, MERCOSUR, APEC, EU
Global Trade Organizations and others: OPEC, ITU, IBWC, IMF, WTO
3.) International Economic Institutions provide a Public Good in terms of Order and Stability. Which
are the two characteristics of a Public Good?
a. Excludability and Rivalry
b. Non- Excludability and Rivalry
c. Excludability and Non- Rivalry
d. Non- Excludability and Non- Rivalry
Notes:
Public goods, cannot be non-excludable since the normal price mechanism doesn’t work and Non –
rivalry, because the good can’t be diminished by consumption
Chapter 3: Comparative Advantage and the Gains from Trade (3 Questions)
4.) In the Ricardian trade model, if two countries go from autarky to free trade with each other they
will both have “gains form trade”. What is a way of describing the gains from trade?
a. Both countries consume outside their own production possibilities curves.
b. Both countries consume inside their own production possibility curves.
c. Both countries consume outside their own free-trade consumption possibilities curves.
d. Both countries consume inside their own free-trade consumption possibilities curves.
