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