12 Questions
What may enable countries to be more efficient when they specialize?
Large-scale production
What is a consequence of international trade for the distribution of income within a country?
It may affect the distribution of income
What determines the pattern of trade between countries?
All of the above
What is a consequence of governments restricting trade?
It reduces the benefits of trade
What is a benefit of exchanging risky assets such as stocks and bonds between countries?
It reduces the variability of income
What measures the balance of funds that central banks use for official international transactions?
Balance of payments
What is the primary focus of international economics?
How nations interact through trade, money flows, and investment
What has been the trend in the importance of international trade over time?
It has become three times more important
Why do countries engage in international trade?
To export goods made with relatively abundant resources and import goods made with relatively scarce resources
What happened to imports and exports in 2009 and 2020?
They experienced significant declines
How does the United States compare to other countries in terms of international trade?
It relies less on international trade
What is the key insight of international economics?
Countries selling goods and services to each other almost always generate mutual benefits
Explore the world of international economics, where nations interact through trade, money flows, and investment. Learn about the increasing importance of international trade and its impact on the global economy. This quiz delves into the significance of imports, exports, and GDP in shaping international relationships.
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