第一章

1 The characteristic of nations that differentiates them from regions and that allows them the freedom to decide what policies they will pursue is: B A) independence. B) sovereignty. C) democracy. D) communism.

2 The \ C A) international competition. B) cost savings. C) outsourcing. D) inshoring.

3 India has prospered in recent years primarily because: C

A) it pursued self-sufficiency by encouraging local producers to serve local customers.

B) it was a British colony for so long, so it did not have its own contacts with importers or a background in controlling imports.

C) of the availability of low-cost, well educated workers who speak English and who are connected by voice and data transmission to the rest of the world.

D) it provides subsidies to local businesses which allows those businesses to compete with firms exporting goods to India.

4The U.S. is likely to benefit from outsourcing because: D

A) U.S. firms will be able to increase their exports to foreign markets.

B) the value of the U.S. dollar will be maintained as foreign producers require U.S. dollars to do business with U.S. firms.

C) it decreases the reliance of the U.S. on comparative advantage.

D) it allows American firms to replace high-cost domestic production with low-cost foreign production.

5 Approximately what portion of the foreign-born population of the U.S. is illegal immigrants? C A) 10% B) 20% C) 33% D) 67%

6 The value of one country's currency expressed in terms of another country's currency is the: A A) exchange rate.

B) international valuation rate. C) currency-to-currency rate. D) comparative currency rate.

7In the early part of the 21st century, what did the Chinese government do to bring stability to the

value of the Chinese yuan? C

A) It restricted the purchase of yuan.

B) It bought yuan on the international market. C) It bought U.S. dollars and sold yuan. D) It sold yuan and bought gold.

8Sovereign wealth funds are: D

A) secure savings accounts for government funds.

B) savings accounts for individuals provided by governments.

C) accounts where governments hold their own currency until it is needed in the marketplace. D) investment vehicles that allow governments to seek high returns by investing in a broad range of international financial assets.

9 A significant source of wealth for governments in the Middle East is: A A) revenue from the export of natural resources.

B) economic aid from the U.S. and European countries.

C) the outsourcing of service production from other countries.

D) tourism dollars, especially from religious tourists on pilgrimages.

10 What potential problem does Britain's slogan \A

A) As a member of the European Union, Britain must allow the free movement and right to work of all citizens of countries in the European Union.

B) There are not enough workers in England to fill all of the jobs available in England. C) British workers will not accept the lowest paying jobs in England.

D) British workers do not possess all of the skills that are needed by firms operating in England.

11 The most important policies that countries can control involve: D

A) defense and military actions since the security of a country must be its primary concern. B) production of energy since a secure energy source is vital to the country's wellbeing.

C) protection of the environment since environmental damage occurs not only domestically but also internationally.

D) movement of production resources, taxing and spending, and money and exchange.

12 Possibly the most important difference between domestic and international trade is that international transactions often involve: B

A) people who have not dealt with each other before. B) use of different currencies. C) people from different cultures.

D) transactions that take a long time to complete.

13Who controls the supply of a particular currency? C A) The World Bank.

B) The international exchange market.

C) The central bank of the country that issued the currency.

D) The central bank of the country holding the largest amount of the currency.

14 Why are many banks established in the Bahamas? D A) It is close to the U.S.

B) It is part of the British Empire.

C) Wealthy people prefer to do business with banks that are not located in the country where they reside.

D) The capital gains of banks are taxed at lower rates in the Bahamas than in other countries, and there is less regulation of banks in the Bahamas than in other countries.

15When considering factor mobility, what does it mean that land is mobile? B A) Natural resources can be removed from the land and taken away. B) Land can be put to different productive uses. C) Land use can be controlled by government.

D) Political boundaries can change so that land can be excluded from or included in a particular city or state.

16 What does classical economics say about factor mobility? A

A) Factors of production are not mobile across national boundaries.

B) Land cannot move but workers and capital do move across national boundaries. C) All factors of production are mobile without regard to political boundaries. D) Land and workers are mobile across national boundaries, but capital is not.

17 With regard to migration, where are people more likely to move? C A) To other countries within their region. B) To other countries outside of their region. C) Within their own country.

D) People are not more likely to move any one place than another.

18With respect to financial capital, \A A) one's own country. B) other countries.

C) firms headquartered in one's own country.

D) any firm that does business in one's own country.

19 One thing that international economics and economics in general have in common is that both: D

A) deal with a common currency.

B) deal with consumers and producers seeking the same benefits. C) ignore the effects of different political situations. D) deal with the challenges of scarce resources.

20 The kind of work that is most likely to be sent to lower-labor-cost countries is work that is: C A) complicated and time-consuming.

B) specialized and that must be performed by specialists. C) repetitive and routine. D) special order.

第二章

1All of the following are determinants of quantity demanded by consumers in a market except: D A) consumers' taste, preferences and opinion of the product.

B) the price of the product compared to the price of substitute products. C) the income that consumers have to spend.

D) the amount of producer surplus on the last unit sold.

2 There is a strong presumption that consumer demand curves: C A) are horizontal. B) are vertical.

C) slope downward. D) slope upward.

3A change in the price of an item causes: B

A) movement of the demand curve for the item. B) movement along the demand curve for the item. C) consumers to buy more. D) consumers to buy less.

4 In 2005, how much of the world's exports were attributed to industrialized countries? D A) 1/4 B) 1/3 C) 1/2 D) 2/3

5 One way to measure responsiveness of quantity demanded to changes in price of an item is by observing the: A

A) slope of the demand curve.

B) movement of the demand curve. C) changes in consumer preferences. D) location of the equilibrium point.

6 Price elasticity of demand measures: D

A) the profit that producers of an item can expect to earn.

B) how often the price of an item changes in a given time period. C) how much the price of an item changes in a given period of time.

D) the percentage change in quantity demanded resulting from a 1 percent change in the price of an item.

7The net gain to consumers from buying any product is the: B