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Chapter 2 World Trade—An Overview
? Multiple Choice Questions
1.
What percent of all world production of goods and services is exported to other countries?
(a) 10%
(b) 25%
(c) 50%
(d) 100%
(e) None of the above
Answer: B
2. What percent of all world imports of goods and services were exported?
(a) 10%
(b) 25%
(c) 50%
(d) 100%
(e) None of the above.
Answer: D
3.
What percent of all world consumption (private and public, including real investment) was imported?
(a) 10%
(b) 25%
(c) 50%
(d) 100%
(e) None of the above.
Answer: B
The gravity model, that states that size matters, predicts that the weight of the traded good will 4.
________ related to its likelihood to be exported
be directly (a)
be inversely (b)
not be
(c)
All of the above (d)
None of the above (e)
Answer: E
5.
The gravity model offers a logical explanation for the fact that
(a) Trade between Asia and the U.S. has grown faster than NAFTA trade.
(b) Trade in services has grown faster than trade in goods.
(c) Trade in manufactures has grown faster than in agricultural products
(d) Intra-European Union trade exceeds International Trade of the European Union.
(e) None of the above
Answer: D
The gravity model suggests that over time
6.
trade between neighboring countries will increase (a)
trade between all countries will increase
(b)
. world trade will eventually be swallowed by a black hole(c)
trade between Earth and other planets will become important (d)
None of the above (e)
Answer: E
7.
explains why
The gravity model
trade between Sweden and Germany exceeds that between Sweden and Spain (a)
countries with oil reserves tend to export oil.
(b)
capital rich countries export capital intensive products
(c)
intra-industry trade is relatively more important than other forms of trade between neighboring
(d)
countries.
None of the above (e)
Answer: A
8.
a characteristic that tends to affect the probability of trade existing According to the gravity
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