the international economy and globalization MCQs – Page 4

Practise focused the international economy and globalization questions with marked answers for exam preparation and subject revision.

the international economy and globalization Mcqs
61. Economic integration ?
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A. occurs when two or more nations join to form a free-trade zone

B. occurs when countries are granted most favored nation status

C. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets

D. occurs when one country voluntarily agrees to reduce its exports to another country

62. A demand switching policy could be ?
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A. Higher income tax

B. Higher interest rates

C. Tariffs

D. Reduced government spending

63. Economic transition involves high inflation because _____ and ______?
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A. high monetary growth high wages

B. Prices surge from an artificially low level to their equilibrium level the inflation tax is required a source of government revenue

C. high monetary growth devaluation

D. high budget deficits devaluation

64. A sudden shift from import tariffs to free trade may induce short-term unemployment in ?
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A. industries that neither import nor export

B. Industries that are only exporters

C. Industries that sell domestically as well as export

D. Import-competing industries
65. For the United states, exports plus imports are about _____ of its gross national product?
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A. 5 percent

B. 25 percent

C. 55 percent

D. 10 percent

66. If a nation has an open economy it means that the nation ?
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A. Has fixed exchange rates

B. Has flexible exchange rates

C. Allows private ownership of capital

D. conducts trade with other countries