Global Economics
Final Exam
Course Introduction
Global Economics explores the interconnectedness of national economies in an increasingly globalized world. The course examines fundamental economic concepts such as trade, investment flows, exchange rates, and the balance of payments, and analyzes how policy decisions and international institutions shape economic outcomes across borders. Students will investigate current global economic challenges, including development disparities, financial crises, and the impacts of globalization on markets, labor, and the environment. Through theoretical models and real-world case studies, the course equips students with the analytical tools needed to understand and evaluate economic issues from a global perspective.
Recommended Textbook
Macroeconomics 7th Edition by
R. Glenn Hubbard
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19 Chapters
4812 Verified Questions
4812 Flashcards
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Page 2
Chapter 1: Economics: Foundations and Models
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219 Verified Questions
219 Flashcards
Source URL: https://quizplus.com/quiz/51956
Sample Questions
Q1) Refer to Table 1-2.What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours?
A)$15
B)$25
C)$65
D)$80
Answer: A
Q2) Which of the following statements about positive economic analysis is true?
A)Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.
B)There is much less disagreement among economists over normative economic analysis than over positive economic analysis.
C)There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
D)Unlike positive economic analysis,normative economic analysis can be tested.
Answer: A
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Chapter 2: Trade-Offs, Comparative Advantage, and the Market System
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236 Verified Questions
236 Flashcards
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Sample Questions
Q1) A redwood forest is not an example of a factor of production but the harvested and processed redwood is a factor of production.
A)True
B)False
Answer: False
Q2) Which of the following is a factor of production?
A)an acre of forested land
B)a U.S.Treasury bond
C)20 shares of Ford stock
D)$25,000 in cash
Answer: A
Q3) Refer to Figure 2-13.Which two arrows in the diagram depict the following transaction: Stanley purchases the novel,"Night of Sorrows" for his summer reading pleasure.
A)J and M
B)J and G
C)K and M
D)K and G
Answer: D
Page 4
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Chapter 3: Where Prices Come From: The Interaction of
Demand and Supply
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234 Verified Questions
234 Flashcards
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Sample Questions
Q1) What is a surplus? What is a shortage?
Answer: A surplus is a situation in which the quantity supplied is greater than the quantity demanded.A shortage is a situation in which the quantity demanded is greater than the quantity supplied.
Q2) Refer to Figure 3-2.A decrease in the price of inputs would be represented by a movement from
A)A to B.
B)B to A.
C)S<sub>1</sub> to S<sub>2</sub>.
D)S<sub>2 </sub>to S<sub>1</sub>.
Answer: C
Q3) If in the market for apples the supply has decreased,then
A)the supply curve for apples has shifted to the right.
B)there has been a movement upwards along the supply curve for apples.
C)the supply curve for apples has shifted to the left.
D)there has been a movement downwards along the supply curve for apples.
Answer: C
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Page 5
Chapter 4: Economic Efficiency, Government Price Setting, and Taxes
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212 Verified Questions
212 Flashcards
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Sample Questions
Q1) Refer to Figure 4-4.The figure above represents the market for iced tea.Assume that this is a competitive market.At an output of 30,000 units
A)the marginal cost of iced tea is greater than the marginal benefit; therefore,output is inefficiently high.
B)producers should raise the price to $3 in order to sell the quantity demanded of 30,000.
C)the marginal benefit of iced tea is greater than the marginal cost; therefore,output is inefficiently low.
D)the marginal benefit of iced tea is greater than the marginal cost; therefore,output is inefficiently high.
Q2) Refer to Table 4-4.Suppose that the quantity of labor demanded decreases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A)W = $10.00; Q = 390,000
B)W = $9.50; Q = 380,000
C)W = $8.50; Q = 340,000
D)W = $8.00; Q = 350,000
Q3) What is meant by the term "economic efficiency"?
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Chapter 5: The Economics of Health Care
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166 Verified Questions
166 Flashcards
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Sample Questions
Q1) Federal and state governments in the United States pay for ________ of health care spending.
A)less than 10 percent
B)approximately 34 percent
C)just over half
D)more than 80 percent
Q2) Which of the following did not contribute to the overall decline in death rates in the United States since 1981?
A)a decline in smoking
B)the decline in the population
C)the availability of new prescription drugs
D)new surgical techniques
Q3) Of the following high-income countries,which has the lowest infant mortality rate?
A)Canada
B)Japan
C)the United Kingdom
D)the United States
Q4) How do adverse selection and moral hazard affect the market for insurance?
Q5) What is asymmetric information?
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Chapter 6: Firms, the Stock Market, and Corporate Governance
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251 Verified Questions
251 Flashcards
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Sample Questions
Q1) Jack Dorsey is the Chief Executive Officer of Twitter as well as a member of Twitter's board of directors.Dorsey is therefore classified as an
A)inside director.
B)outside director.
C)independent director.
D)unbiased director.
Q2) In response to accounting scandals in 2002,the federal government passed legislation requiring,among other things,that auditors disclose any potential conflicts of interest.What is the name of this legislation?
A)the Accountant Reliability Act
B)the 24th amendment to the Constitution
C)the Kennedy-Lott Act
D)the Sarbanes-Oxley Act
Q3) If a partnership raised funds by recruiting additional owners to invest in the firm,what would happen to the firm's financial capital?
Q4) By the percentage of each type of business organization in the United States,rank sole proprietorships,partnerships,and corporations in terms of the number of firms,revenue,and profits.
Page 8
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Chapter 7: Comparative Advantage and the Gains From International Trade
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188 Verified Questions
188 Flashcards
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Sample Questions
Q1) Refer to Table 7-1.Use the table above to select the statement that accurately interprets the data in the table.
A)Rob has an absolute advantage in picking berries and Bill has an absolute advantage in catching fish.
B)Bill has an absolute advantage in picking berries and Rob has an absolute advantage in catching fish.
C)Bill has an absolute advantage in picking berries and catching fish.
D)Rob has an absolute advantage in picking berries and catching fish.
Q2) Is the value of U.S.exports typically larger or smaller than the value of U.S.imports?
Q3) Governments sometimes erect barriers to trade other than tariffs and quotas.Which of the following is not an example of this type of trade barrier?
A)a requirement that the employees of domestic firms that engage in foreign trade pay income taxes
B)a requirement that imports meet health and safety requirements
C)restrictions on imports for national security reasons
D)a requirement that the U.S.government buy military uniforms only from U.S.manufacturers
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Page 9
Chapter 8: GDP: Measuring Total Production and Income
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260 Verified Questions
260 Flashcards
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Sample Questions
Q1) Gross national product (GNP)of the United States is the market value of all final goods and services
A)produced within the United States.
B)consumed within the United States.
C)produced by citizens of the United States anywhere in the world.
D)consumed by citizens of the United States anywhere in the world.
Q2) The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.________ and the South Korean ________.
A)GDP; GDP
B)GNP; GDP
C)GDP; GNP
D)GNP; GNP
Q3) To calculate GDP by the expenditure method,one must add A)wages,rents,interest,and profits.
B)consumption spending,investment spending,government purchases,and net exports.
C)consumption spending,investment spending,government purchases,and exports.
D)labor,natural resources,entrepreneurship,and capital.
Q4) Refer to Table 8-24.Given the following information,calculate the rate of increase in the price level from 2017 to 2018.Use the percent change in the GDP deflator.
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Chapter 9: Unemployment and Inflation
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289 Flashcards
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Sample Questions
Q1) If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?
A)12.5%
B)37.5%
C)40%
D)62.5%
Q2) The most widely used measure of inflation is based on which of the following price indices?
A)the producer price index
B)the consumer price index
C)the GDP deflator
D)the wholesale price index
Q3) If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level,we would base our measure of inflation on
A)the producer price index.
B)the consumer price index.
C)the GDP deflator.
D)the household price index.
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Page 11
Chapter 10: Economic Growth, the Financial System, and Business Cycles
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251 Verified Questions
251 Flashcards
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Sample Questions
Q1) In an open economy,the country interacts with other economies through both trading of goods and services and borrowing and lending.
A)True
B)False
Q2) Which of the following will increase investment spending in the economy,holding everything else constant?
A)an increase in the federal government surplus
B)an increase in the budget deficit
C)an increase in consumer dissavings
D)an increase in transfer payments
Q3) A(n)________ comes to an end with a business cycle ________.
A)recession; peak
B)recession; trough
C)expansion; trough
D)expansion; bubble
Q4) Which of the following statements about the budget deficit is true?
A)From 2007-2009,the federal budget was balanced.
B)In 2009,the budget deficit was a record $1.4 trillion.
C)In 2016,the federal budget was in surplus.
D)In 2017,the federal budget was balanced.
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Chapter 11: Long-Run Economic Growth: Sources and Policies
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261 Verified Questions
261 Flashcards
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Sample Questions
Q1) If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2018,and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2018,what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2018?
A)The BLS will adjust the growth rate downwards.
B)The BLS will adjust the growth rate upwards.
C)The BLS will not change the growth rate of productivity.
D)The BLS will adjust the level of labor productivity upward and the growth rate downward.
Q2) Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by A)reducing physical capital.
B)reducing human capital.
C)increasing labor productivity.
D)increasing technological change.
Q3) How do government policies that enforce property rights affect economic growth?
Q4) Most of the countries of Africa are considered newly industrializing countries.
A)True
B)False
Page 13
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Chapter 12: Aggregate Expenditure and Output in the Short Run
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304 Verified Questions
304 Flashcards
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Sample Questions
Q1) If the multiplier is 10,the marginal propensity to consume must be 0.1.
A)True
B)False
Q2) If aggregate expenditure is greater than GDP,how will the economy reach macroeconomic equilibrium?
A)Inventories will decline,and GDP and employment will decline.
B)Inventories will rise,and GDP and employment will decline.
C)Inventories will decline,and GDP and employment will rise.
D)Inventories will rise,and GDP and employment will rise.
Q3) Net exports usually ________ when the U.S.economy is in a recession and ________ when the U.S.economy is expanding.
A)increase; increase
B)decrease; increase
C)increase; decrease
D)decrease; decrease
Q4) Given Table 12-7 below,fill in the values of the marginal propensity to save (MPS)and the marginal propensity to consume (MPC).Show that MPC + MPS = 1.
Q5) What is the difference between aggregate expenditure and aggregate demand?
Q6) Given Table 12-8 below,fill in the values for saving.Assume there are no taxes.
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Chapter 13: Aggregate Demand and Aggregate Supply Analysis
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284 Verified Questions
284 Flashcards
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Sample Questions
Q1) On the long-run aggregate supply curve
A)an increase in the price level increases the aggregate quantity of GDP supplied.
B)an increase in the price level reduces the aggregate quantity of GDP supplied.
C)an increase in the price level has no effect on the aggregate quantity of GDP supplied.
D)an increase in the price level increases the level of potential GDP.
Q2) Refer to Figure 13-3.Suppose the economy is at point A.If the economy experiences a negative supply shock,where will the eventual short-run equilibrium be?
A)A
B)B
C)C
D)D
Q3) Which of the following is considered a negative supply shock?
A)increasing investment in the economy causes the capital stock to rise
B)an unexpected increase in the price of natural gas
C)a decline in wages
D)an improvement in technology
Q4) Briefly describe monetarism and the monetary growth rule.
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Chapter 14: Money,Banks,and the Federal Reserve System
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276 Verified Questions
276 Flashcards
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Sample Questions
Q1) The largest proportion of M1 is made up of A)currency.
B)checking account deposits.
C)traveler's checks.
D)savings account deposits.
E)time deposits.
Q2) Which of the following is not counted in M1?
A)checking account balances
B)credit card balances
C)coins in circulation
D)currency in circulation
E)traveler's check balances
Q3) What are the implications of the quantity theory of money for monetary policy and price stability?
Q4) The statement,"My iPhone is worth $700" represents money's function as A)a medium of exchange.
B)a unit of account.
C)a store of value.
D)a standard of deferred payment.
Q5) How do open market operations work?
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Chapter 15: Monetary Policy
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278 Verified Questions
278 Flashcards
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Sample Questions
Q1) Despite saving Lehman Brothers from failing,the Fed and the Treasury decided to allow Bear Stearns to go bankrupt,which it did in September,2008.
A)True
B)False
Q2) The interest rate that banks charge other banks for overnight loans is the A)prime rate.
B)discount rate.
C)federal funds rate.
D)Treasury bill rate.
Q3) Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in long-run macroeconomic equilibrium.For Year 2,graph aggregate demand,long-run aggregate supply,and short-run aggregate supply such that the condition of the economy will induce the Federal Reserve to conduct an expansionary monetary policy.Briefly explain the condition of the economy and what the Federal Reserve is attempting to do.
Q4) Changes in interest rates affect all four components of aggregate demand.
A)True
B)False
Q5) List the Fed's four main monetary policy goals.
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Chapter 16: Fiscal Policy
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Sample Questions
Q1) In the case of an upward-sloping aggregate supply curve,the change in real GDP brought about by a change in government spending will be less than that predicted by the simple government purchases multiplier.
A)True
B)False
Q2) Congress and the president carry out fiscal policy through changes in
A)interest rates and the money supply.
B)taxes and the interest rate.
C)government purchases and the money supply.
D)government purchases and taxes.
Q3) Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced.What will happen to real equilibrium GDP?
A)Real equilibrium GDP will fall.
B)Real equilibrium GDP will rise.
C)There will be no change in real equilibrium GDP.
D)Real equilibrium GDP will initially rise,but then fall below its previous equilibrium value.
Q4) What is fiscal policy,and who is responsible for fiscal policy?
Q5) What is the difference between federal purchases and federal expenditures?
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Chapter 17: Inflation, Unemployment, and Federal Reserve Policy
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Sample Questions
Q1) Refer to Figure 17-2.Suppose the Fed used contractionary policy to push short-run equilibrium to point C.If the short-run equilibrium remained at point C long enough
A)the short-run Phillips curve would shift up.
B)the short-run Phillips curve would shift down.
C)the economy would move back to point A.
D)the economy would stay at point C in the long run.
Q2) Refer to Figure 17-1.What should the Federal Reserve do if it wants to move from point
A to point C in the short-run Phillips curve depicted in the figure above?
A)buy treasury bills
B)sell treasury bills
C)raise the discount rate
D)decrease the money supply
E)raise taxes
Q3) The natural rate of unemployment is the rate that exists when the economy is producing at potential GDP.
A)True
B)False
Q4) What does it mean to say that workers and firms have rational expectations?
Page 19
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Chapter 18: Macroeconomics in an Open Economy
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277 Flashcards
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Sample Questions
Q1) Which of the following would increase the balance on the current account?
A)an increase in foreign direct investment
B)an increase in the amount of aid money the government sends abroad
C)an increase in imports
D)an increase in the balance of trade
Q2) If currency speculators decide that the value of the dollar should rise in the future relative to the yen,this will increase the demand for dollars and decrease the supply of dollars.
A)True
B)False
Q3) In 2016,global revenue for Amazon was $550 million lower when measured in dollars than when measured in local currencies.The reason for this discrepancy is the value of the
A)euro decreased relative to the British pound.
B)British pound increased relative to the U.S.dollar.
C)U.S.dollar increased relative to most other currencies.
D)U.S.dollar decreased relative to the Japanese yen.
Q4) How is the impact of contractionary monetary policy different in an open economy than in a closed economy?
Q5) Explain the relationship between net exports and net foreign investment.
Page 20
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Chapter 19: The International Financial System
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256 Verified Questions
256 Flashcards
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Sample Questions
Q1) Which of the following statements about capital markets is true?
A)The U.S.capital market is currently larger than all other capital markets combined.
B)At one time,the U.S.capital market was larger than all other capital markets combined,but that is no longer the case.
C)There are currently large capital markets in Europe,but none in Asia.
D)The largest capital markets in the world today are in East Asia and Latin America.
Q2) What determined the exchange rates among currencies under the gold standard,and what caused the gold standard to collapse?
Q3) China began pegging its currency,the yuan,to the dollar in 1994.Because the yuan has been ________ at the pegged exchange rate,the Chinese government ________ its reserves of dollars as the government purchased more ________ to maintain the pegged exchange rate.
A)undervalued; increased; dollars
B)undervalued; decreased; yuan
C)overvalued; decreased; yuan
D)overvalued; increased; yuan
Q4) Why might a country raise interest rates in the face of an exchange rate crisis?
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