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Test your basic knowledge |
CLEP Macroeconomics: International
Start Test
Study First
Subjects
:
clep
,
economics
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. As the value of a nation's currency increases the exports of that nation will ________.
change in interest rate
growth accounting
exports
decrease
2. Is the price at which the currency of one country is exchanged for the currency of another country
import quotas
specialization and increased production
supply of dollars
foreign exchange rate
3. Shows the options one nation has by specializing in one product and trading another
foreign exchange market
how exchange rate is determined
specialization and increased production
trading possibilities line
4. The exchange rate - interest rates in that country and other countries - and the expected future exchange rate
outward
classical growth theory
three factors that determine how much money will be demanded
tariffs
5. Shield domestic producers from foreign competition
depreciates
protective tariffs
new growth theory
General Agreement of Tariff and Trade
6. What you give up to get what you want
opportunity cost
capital account
increase
economic growth
7. Specify maximum import levels for specific commodities
import quotas
how exchange rate is determined
Balance of International Payments
growth accounting
8. Quotas increase the domestic price of the good and the increased revenue goes to the...
supply of dollars
foreign exporter
protective tariffs
new growth theory
9. A forum for negotiating reduction of tariff barriers on a multilateral level
land-intensive
economic growth
General Agreement of Tariff and Trade
balance of trade
10. A change in interest rates or a change in the expected future exchange rate changes the _________ for dollars.
demand side growth policies
capital-intensive
demand
comparative advantage
11. Work to achieve full production or capacity potentials
supply side growth policies
appreciates
supply factors of economic growth
how exchange rate is determined
12. If the number of Nation B's dollars that a Nation A dollar buys increases - then Nation A's dollar ___________.
imports
productivity function
appreciates
specialization and increased production
13. A theory of economic growth based on the idea that technological change results from people's choices and pursuit of profit
imports
new growth theory
demand side growth policies
the one-third rule
14. The absence of government barriers to trade among firms and individuals in different nations
Balance of International Payments
free trade
foreign exporter
depreciates
15. By the supply and demand in the foreign exchange market
demand side growth policies
how exchange rate is determined
foreign exchange rate
other industries and consumers
16. PPC shifts this way to indicate economic growth
General Agreement of Tariff and Trade
revenue tariffs
outward
the one-third rule
17. A theory of economic growth based on the view that population growth is determined by income per person
new growth theory
classical growth theory
increase
change in interest rate
18. Quantity and quality of a nation's natural resources - human resources - capital stock - and technology
depreciates
trading possibilities line
supply factors of economic growth
exchange rate
19. A tracking of all export and import goods and services
growth accounting
current account
exports
supply of dollars
20. Government interference in protecting certain industries comes at the expense of...
revenue tariffs
depreciates
supply of dollars
other industries and consumers
21. Imposed on goods not produced domestically
revenue tariffs
change in interest rate
General Agreement of Tariff and Trade
tariffs
22. An x percent increase in capital per hour of work brings a 1/3 of x percent increase in output per hour of work
domestic government
the one-third rule
increase
other industries and consumers
23. Nations with advanced industries are better at producing these kinds of commodities
how Fed influences exchange rate
trading possibilities line
exchange rate
capital-intensive
24. Benefits of international trade
supply factors of economic growth
specialization and increased production
other industries and consumers
industrial growth policies
25. Licensing agreements - imposed product standards or levels of 'red tape' that a foreign producer must meet or qualify for before being allowed to export it
import quotas
non-tariff barriers
the one-third rule
tariffs
26. Excise taxes on imported goods
tariffs
rightward
non-tariff barriers
revenue tariffs
27. Relationship between the quantity of currency to be sold and the exchange rate is the...
the one-third rule
supply of dollars
land-intensive
capital-intensive
28. Small tariffs put in place so the government can earn tax revenue
revenue tariffs
exchange rate
productivity function
classical growth theory
29. The addition of all goods and services in the current account
economic growth
depreciates
balance of trade
efficiently/fully
30. Growth potential cannot be reached unless AD increases and new resources are used...
efficiently/fully
foreign exchange market
Balance of International Payments
imports
31. A change in this brings about a change in how much a country is willing to sell of its currency
exchange rate
economic growth
growth accounting
balance of trade
32. Protective tariffs increase the domestic price of a good and the increased revenue goes to the...
protective tariffs
domestic government
Balance of International Payments
specialization and increased production
33. LAS curve shifts this way to indicate economic growth
exports
non-tariff barriers
trade in similar goods
rightward
34. The attempt to measure the contributions to growth of labor - capital - and technological change
foreign exchange market
growth accounting
trade in similar goods
capital-intensive
35. A tracking of the investments made and loans extended to other countries
capital account
foreign exchange rate
Balance of International Payments
change in interest rate
36. If the interest rate decreases - the demand for the currency will
change in interest rate
increase
import quotas
foreign exchange market
37. These create a domestic need for foreign money
neoclassical growth theory
appreciates
rightward
imports
38. By influencing interest rates and direct intervention in the foreign exchange market
how Fed influences exchange rate
how exchange rate is determined
demand
domestic government
39. A global market in which the currency of one country is exchanged for the currency of another country
non-tariff barriers
capital-intensive
foreign exchange market
comparative advantage
40. Records all the transactions that take place between residents and foreign nations
revenue tariffs
how Fed influences exchange rate
Balance of International Payments
industrial growth policies
41. The relationship between real GDP per hour of work and capital per hour of work
productivity function
revenue tariffs
domestic government
land-intensive
42. An increase in real GDP that occurs over time
capital-intensive
economic growth
outward
revenue tariffs
43. If the number of Nation B's dollars that Nation A buys decreases - then Nation A's dollar ___________.
the one-third rule
capital-intensive
appreciates
depreciates
44. These create a foreign need for domestic money
supply of dollars
supply side growth policies
industrial growth policies
exports
45. Nations with a more highly skilled and larger workforce are better at producing these kinds of commodities
labor-intensive
trade in similar goods
supply side growth policies
decrease
46. The total output will be greatest when each good is produced by that nation that has the lower opportunity cost for that good
domestic government
comparative advantage
appreciates
non-tariff barriers
47. Occurs because of diversity of taste and economies of scale
increase
trade in similar goods
change in interest rate
foreign exchange rate
48. Nations with a larger available land mass are better at producing these kinds of commodities
capital-intensive
labor-intensive
land-intensive
exports
49. Increase aggregate demand during recession
opportunity cost
demand side growth policies
foreign exchange rate
land-intensive
50. Advocate government taking an active role in the structure and composition of industry
how Fed influences exchange rate
foreign exchange rate
industrial growth policies
land-intensive