DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
1. WhichgofgthegfollowinggisgNOTgagreasongwhygcountriesgtradeggoodsgwithgoneganother?
A) differencesgingtechnologygusedgingdifferentgcountries
B) differencesgingcountries'gtotalgamountgofgresources
C) thegproximitygofgcountriesgtogoneganother
D) differencesgingcountries'glanguagesgandgcultures
2. DavidgRicardo'sgmodelgexplainsgtradegbasedgon:
A) laborgsupply.
B) technology.
C) population.
D) governmentgcontrol.
3. WhichgofgthegfollowinggisgthegMOSTglikelygexplanationgforgagDetroitgconstructio
ngcompany'sgimportsgofgconcretegblocksgmadegingWindsor,gOntario?
A) thegRicardiangmodel
B) offshoring
C) technology
D) proximity
4. WhatgisgthegMOSTglikelygreasongwhygneighboringgnationsgengagegingtrade?
A) laborgavailability
B) similargtastesgandgpreferences
C) proximity
D) sharedgmembershipgingagfree-tradegarea
5. Agcountry'sgfactorsgofgproductiongincludes:
A) itsglabor,gcapital,gnaturalgresources,gandgmarkets.
B) onlygitsglaborgandgcapital.
C) onlygitsgcapitalgandgnaturalgresources.
D) itsglabor,gcapital,gandgnaturalgresources.
6. WhichgofgthegfollowinggisgNOTgconsideredgtogbegagfactorgofgproduction?
A) labor
B) capital
C) naturalgresources
D) government
Pageg1
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
7. Whengagfirmgingonegnationgpurchasesgunfinishedgproductsginternationallygandgadd
sgfurthergprocessinggtogsellgingthegdomesticgmarket,gthisgisgknowngas:
A) barter.
B) offshoring.
C) factorgmovement.
D) marketinggarrangements.
8. Ingsomegcases,gagcountrygcangexportgaggoodgwithoutghavingganygadvantagegingthegnatur
algresourcesgneededgtogproducegit.g Whichgofgthegfollowinggisgangexamplegofgthisgtypeg
ofgexport?
A) Austriangexportsgofgsnowboards
B) U.gS.gexportsgofg“icewine”
C) JapanesegexportsgofgToyotas
D) Canadiangexportsgofglumber
9. Ingsomegcases,gagcountrygcangexportgaggoodgwithoutghavingganygadvantagegingthegnatur
algresourcesgneededgtogproducegit.g Whichgofgthegfollowinggisgangexamplegofgthisgtypeg
ofgexport?
A) UnitedgArabgEmirates'sgexportsgofghigh-qualitygsnowboards
B) U.gS.gexportsgofgCaterpillargbulldozers
C) Frenchgexportsgofgwine
D) Canadiangexportsgofglumber
10. Ingtrade,gifgagnationghasgthegtechnologygtogproducegaggoodgwithgfewestgresourcesg(suchg
asgGermany'sgproductiongofgsnowboards),gitgisgknowngasga(n):
A) absolutegadvantage.
B) technologygadvantage.
C) comparativegadvantage.
D) resourcegadvantage.
11. ThegRicardiangmodelgfocusesgonghow:
A) countries'gresourcegbasesgexplainginternationalgtrade.
B) countries'gdifferentgtechnologiesgexplainginternationalgtrade.
C) transportationgcostsgexplainginternationalgtrade.
D) differentglanguagesgandgculturesgexplainginternationalgtrade.
Pageg2
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
12. Whengagcountrygrequiresgfewergresourcesgtogproducegagproductgthangothergcountries,gitgi
sgsaidgtoghavega(n):
A) absolutegadvantagegingthegproductiongofgthegproduct.
B) comparativegadvantagegingthegproductiongofgthegproduct.
C) highergopportunitygcostgofgproducinggthegproduct.
D) lowergopportunitygcostgofgproducinggthegproduct.
13. Whengagcountrygrequiresgmoregresourcesgtogproducegagproductgthangothergcountries,gitg
isgsaidgtoghavega(n):
A) absolutegdisadvantagegingthegproductiongofgthegproduct.
B) comparativegdisadvantagegingthegproductiongofgthegproduct.
C) lowergopportunitygcostgofgproducinggthegproduct.
D) highergopportunitygcostgofgproducinggthegproduct.
14. ThegprimarygexplanationgofgtradegamonggnationsgisgRicardo'sgtheorygof:
A) offshoring.
B) resourcegabundance.
C) absolutegadvantage.
D) comparativegadvantage.
15. ThegRicardiangmodelgfocusesgonghowgdifferencesging
influenceginternational
tradegpatterns.
g
A) demand
B) comparativegcosts
C) absolutegcosts
D) transportationgcosts
16. Ricardo'sgtheorygofgtradegdiscreditedgthegschoolgofgeconomicgthoughtgthatgbelievedginfl
owsgofggoldgorgsilvergasgagresultgofgexportingghelpedgagnation,gwhilegoutflowsgofggoldgo
rgsilvergasgagresultgofgimportingghurtgagnation.gThisgschoolgofgeconomicgthoughtgwasgkn
owngas:
A) exportgpreference.
B) mercantilism.
C) monetarygeconomics.
D) price-specie-flowgmechanism.
Pageg3
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
17. Ricardo'sgtheorygmadegagnumbergofgassumptions,gincludinggwhichgofgthegfollowing?
A) Nationsghadgbalancedgtradegwithgtheirgpartners.
B) Theregweregbarriersgtogtrade.
C) Theregwasgnogtransfergofggoldgorgsilver.
D) Nations'gfactorsgofgproductiongconsistedgofglaborgandgcapital.
18. AccordinggtogRicardo:
A) allgcountriesgcanggaingfromgtradegifgtheygexportggoodsgforgwhichgtheyghavega
ngabsolutegadvantage.
B) onegcountrygcanggaingfromgtradegonlygatgthegexpensegofganothergcountry.
C) allgcountriesgcanggaingfromgtradegifgtheygexportggoodsgforgwhichgtheyghaveg
agcomparativegadvantage.
D) allgcountriesglosegfromginternationalgtrade.
19. AccordinggtogthegRicardiangprinciplegofgcomparativegadvantage,ginternationalgtrad
egincreasesgagnation'sgtotalgoutputgbecause:
A) thegnation'sgresourcesgaregusedgwheregtheygaregmostgproductive.
B) thegoutputgofgthegnation'sgtradinggpartnergdeclines.
C) thegnationgcangproducegoutsidegofgitsgproductiongpossibilitiesgfrontier.
D) thegnationgisgablegtogincreasegitsgconsumption.
20. DavidgRicardogbelievedgthat:
A) tradegisgagzero-
sumggame;gthatgis,gagcountrygbenefitsgatgthegexpensegofgothergcountries.
B) tradegwillgbenefitgcountriesgwhengitggeneratesggoldgandgsilvergforgthegnation
algtreasury.
C) allgnationsgcanggaingfromgfreeginternationalgtrade.
D) tradegcannotgincreasegthegworld'sgoutputgofggoods.
21. Mercantilistsgbelievedgthat:
A) exportingggoodsgwillgleavegfewerggoodsgforgtheglocalgeconomy.
B) importingggoodsgisgbeneficialgforgthegeconomy.
C) exportsgandgimportsgaregbothgbadgforgthegeconomy.
D) exportsgareggoodgandgimportsgaregbadgforgthegeconomy.
Pageg4
mynursytest.store
nstra
1. WhichgofgthegfollowinggisgNOTgagreasongwhygcountriesgtradeggoodsgwithgoneganother?
A) differencesgingtechnologygusedgingdifferentgcountries
B) differencesgingcountries'gtotalgamountgofgresources
C) thegproximitygofgcountriesgtogoneganother
D) differencesgingcountries'glanguagesgandgcultures
2. DavidgRicardo'sgmodelgexplainsgtradegbasedgon:
A) laborgsupply.
B) technology.
C) population.
D) governmentgcontrol.
3. WhichgofgthegfollowinggisgthegMOSTglikelygexplanationgforgagDetroitgconstructio
ngcompany'sgimportsgofgconcretegblocksgmadegingWindsor,gOntario?
A) thegRicardiangmodel
B) offshoring
C) technology
D) proximity
4. WhatgisgthegMOSTglikelygreasongwhygneighboringgnationsgengagegingtrade?
A) laborgavailability
B) similargtastesgandgpreferences
C) proximity
D) sharedgmembershipgingagfree-tradegarea
5. Agcountry'sgfactorsgofgproductiongincludes:
A) itsglabor,gcapital,gnaturalgresources,gandgmarkets.
B) onlygitsglaborgandgcapital.
C) onlygitsgcapitalgandgnaturalgresources.
D) itsglabor,gcapital,gandgnaturalgresources.
6. WhichgofgthegfollowinggisgNOTgconsideredgtogbegagfactorgofgproduction?
A) labor
B) capital
C) naturalgresources
D) government
Pageg1
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
7. Whengagfirmgingonegnationgpurchasesgunfinishedgproductsginternationallygandgadd
sgfurthergprocessinggtogsellgingthegdomesticgmarket,gthisgisgknowngas:
A) barter.
B) offshoring.
C) factorgmovement.
D) marketinggarrangements.
8. Ingsomegcases,gagcountrygcangexportgaggoodgwithoutghavingganygadvantagegingthegnatur
algresourcesgneededgtogproducegit.g Whichgofgthegfollowinggisgangexamplegofgthisgtypeg
ofgexport?
A) Austriangexportsgofgsnowboards
B) U.gS.gexportsgofg“icewine”
C) JapanesegexportsgofgToyotas
D) Canadiangexportsgofglumber
9. Ingsomegcases,gagcountrygcangexportgaggoodgwithoutghavingganygadvantagegingthegnatur
algresourcesgneededgtogproducegit.g Whichgofgthegfollowinggisgangexamplegofgthisgtypeg
ofgexport?
A) UnitedgArabgEmirates'sgexportsgofghigh-qualitygsnowboards
B) U.gS.gexportsgofgCaterpillargbulldozers
C) Frenchgexportsgofgwine
D) Canadiangexportsgofglumber
10. Ingtrade,gifgagnationghasgthegtechnologygtogproducegaggoodgwithgfewestgresourcesg(suchg
asgGermany'sgproductiongofgsnowboards),gitgisgknowngasga(n):
A) absolutegadvantage.
B) technologygadvantage.
C) comparativegadvantage.
D) resourcegadvantage.
11. ThegRicardiangmodelgfocusesgonghow:
A) countries'gresourcegbasesgexplainginternationalgtrade.
B) countries'gdifferentgtechnologiesgexplainginternationalgtrade.
C) transportationgcostsgexplainginternationalgtrade.
D) differentglanguagesgandgculturesgexplainginternationalgtrade.
Pageg2
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
12. Whengagcountrygrequiresgfewergresourcesgtogproducegagproductgthangothergcountries,gitgi
sgsaidgtoghavega(n):
A) absolutegadvantagegingthegproductiongofgthegproduct.
B) comparativegadvantagegingthegproductiongofgthegproduct.
C) highergopportunitygcostgofgproducinggthegproduct.
D) lowergopportunitygcostgofgproducinggthegproduct.
13. Whengagcountrygrequiresgmoregresourcesgtogproducegagproductgthangothergcountries,gitg
isgsaidgtoghavega(n):
A) absolutegdisadvantagegingthegproductiongofgthegproduct.
B) comparativegdisadvantagegingthegproductiongofgthegproduct.
C) lowergopportunitygcostgofgproducinggthegproduct.
D) highergopportunitygcostgofgproducinggthegproduct.
14. ThegprimarygexplanationgofgtradegamonggnationsgisgRicardo'sgtheorygof:
A) offshoring.
B) resourcegabundance.
C) absolutegadvantage.
D) comparativegadvantage.
15. ThegRicardiangmodelgfocusesgonghowgdifferencesging
influenceginternational
tradegpatterns.
g
A) demand
B) comparativegcosts
C) absolutegcosts
D) transportationgcosts
16. Ricardo'sgtheorygofgtradegdiscreditedgthegschoolgofgeconomicgthoughtgthatgbelievedginfl
owsgofggoldgorgsilvergasgagresultgofgexportingghelpedgagnation,gwhilegoutflowsgofggoldgo
rgsilvergasgagresultgofgimportingghurtgagnation.gThisgschoolgofgeconomicgthoughtgwasgkn
owngas:
A) exportgpreference.
B) mercantilism.
C) monetarygeconomics.
D) price-specie-flowgmechanism.
Pageg3
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgInternationalgMacroeconomicsg4thgEditiongFee
nstra
17. Ricardo'sgtheorygmadegagnumbergofgassumptions,gincludinggwhichgofgthegfollowing?
A) Nationsghadgbalancedgtradegwithgtheirgpartners.
B) Theregweregbarriersgtogtrade.
C) Theregwasgnogtransfergofggoldgorgsilver.
D) Nations'gfactorsgofgproductiongconsistedgofglaborgandgcapital.
18. AccordinggtogRicardo:
A) allgcountriesgcanggaingfromgtradegifgtheygexportggoodsgforgwhichgtheyghavega
ngabsolutegadvantage.
B) onegcountrygcanggaingfromgtradegonlygatgthegexpensegofganothergcountry.
C) allgcountriesgcanggaingfromgtradegifgtheygexportggoodsgforgwhichgtheyghaveg
agcomparativegadvantage.
D) allgcountriesglosegfromginternationalgtrade.
19. AccordinggtogthegRicardiangprinciplegofgcomparativegadvantage,ginternationalgtrad
egincreasesgagnation'sgtotalgoutputgbecause:
A) thegnation'sgresourcesgaregusedgwheregtheygaregmostgproductive.
B) thegoutputgofgthegnation'sgtradinggpartnergdeclines.
C) thegnationgcangproducegoutsidegofgitsgproductiongpossibilitiesgfrontier.
D) thegnationgisgablegtogincreasegitsgconsumption.
20. DavidgRicardogbelievedgthat:
A) tradegisgagzero-
sumggame;gthatgis,gagcountrygbenefitsgatgthegexpensegofgothergcountries.
B) tradegwillgbenefitgcountriesgwhengitggeneratesggoldgandgsilvergforgthegnation
algtreasury.
C) allgnationsgcanggaingfromgfreeginternationalgtrade.
D) tradegcannotgincreasegthegworld'sgoutputgofggoods.
21. Mercantilistsgbelievedgthat:
A) exportingggoodsgwillgleavegfewerggoodsgforgtheglocalgeconomy.
B) importingggoodsgisgbeneficialgforgthegeconomy.
C) exportsgandgimportsgaregbothgbadgforgthegeconomy.
D) exportsgareggoodgandgimportsgaregbadgforgthegeconomy.
Pageg4
mynursytest.store
