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International Economics Quiz

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Questions and Answers

Which factor is NOT indicative of higher integration, based on the text?

Lower tariffs

Interest rates of a country converging to those of global capital markets

Faster shipping times

A rise in the number of skilled workers (correct)

Lower insurance costs

According to Adam Smith, how does greater opportunities for trade promote productivity advance?

Specialization (correct)

By limiting the power of dictators

Lowering income inequality

Because fixed exchange rates are not possible when trading

Greater investment in pirating and privateering

Which was NOT a crucial factor in explaining migration patterns of free workers in Europe before 1914?

Credit constraints

Information and personal connections

Government restrictions limiting entry based on nationalities

Wages in the receiving and sending countries

Population pressures in the sending country (correct)

Which factor did the LEAST to promote free and open immigration into the United States?

The Chinese Exclusion Act of 1882 Signup and view all the answers

What happens when nations sign a trade treaty with a Most Favored Nation clause?

Both nations now had to extend their lowest tariff on all goods with their treaty partner. Signup and view all the answers

What is the principle cause of hyperinflation in places like Germany between the wars?

Reparations payments and government budget deficits Signup and view all the answers

Why was the gold standard weak in the period between the two world wars compared to before World War I?

The loss of British leadership at the international level Signup and view all the answers

What does the marginal product of capital diverging suggest?

Productivity was decreasing. Signup and view all the answers

What happens when nations sign a trade treaty with a Most Favored Nation clause regarding tariffs?

Both nations now had to reduce all tariffs to zero. Signup and view all the answers

International Economics Quiz

Choose a study mode

Podcast

Questions and Answers

Which factor is NOT indicative of higher integration, based on the text?

According to Adam Smith, how does greater opportunities for trade promote productivity advance?

Which was NOT a crucial factor in explaining migration patterns of free workers in Europe before 1914?

Which factor did the LEAST to promote free and open immigration into the United States?

What happens when nations sign a trade treaty with a Most Favored Nation clause?

What is the principle cause of hyperinflation in places like Germany between the wars?

Why was the gold standard weak in the period between the two world wars compared to before World War I?

What does the marginal product of capital diverging suggest?

What happens when nations sign a trade treaty with a Most Favored Nation clause regarding tariffs?

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