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Macroeconomics Understanding The Global Economy 3rd Edition Miles Test Bank Full Chapter PDF
Macroeconomics Understanding The Global Economy 3rd Edition Miles Test Bank Full Chapter PDF
1. The first wave of globalization, in the 19th century, was facilitated by all of the following
except
a) the building of larger, faster, and more reliable ships
b) the development of steam power
c) the introduction of refrigeration
d) the construction of canals
e) the development of safe, reliable airplanes
2. Over the past century, the pace of world trade has been
a) steadily declining
b) steadily increasing
c) relatively constant
d) procyclical—rising during booms and declining during recession
e) counter-cyclical: rising during recessions and declining during expansions
3. When did average Tariff protection peak amongst the major nations?
a) Directly after World War II
b) Just before World War I
c) In the 1950’s
d) In the late Nineteeth Century
e) In the 1930’s
4. The second wave of globalization is distinct from the first in all of the following
respects except
a) the second wave has been characterized by liberalization of trade policies
b) value is now added to a single product in several different countries before it reaches
its final destination
c) nearly one-third of all trade is now conducted by multi-national enterprises
d) the opening of capital markets has occurred on a much larger scale in the second
wave
e) the second wave has been less influenced by immigration than the first wave
5. Which of the following has not been suggested as a benefit of free trade?
a) consumers gain from low import prices
b) the labor force gains from outsourcing of production
c) trade partners are less likely to engage in warfare
d) international trade promotes both short run and long run economic growth
e) international trade reduces poverty rates
6. Which of the following has not been proposed as a rationale for promoting import
substitution?
a) The Prebisch-Singer hypothesis
b) The belief that technological progress occurs mainly in manufacturing
c) The infant industry argument
d) The idea that imports can be a source of TFP growth
e) The fear that reliance on imports makes the economy vulnerable to external forces
7. Regressing GDP per capita on a measure of openness to trade across countries may give
biased estimation results because
a) each country measures openness differently
b) without further restrictions, the regression coefficient for openness could be negative
c) openness may capture the effects of omitted variables such as financial reform
d) openness is an index measure, but GDP per capita is measured in monetary units
e) regression is an appropriate econometric methodology only for time series, not for
cross-sectional data
13. Which is not generally true of Foreign Direct Investment by Multinational Enterprises?
a) It tends to increase overall investment in the recipient country
b) They tend to pay higher wages than local firms
c) It tends to result in a transfer of technology to the recipient country
d) It tends to be more volatile than other foreign financing
e) They tend to undertake more research and development than local firms
14. The competition between nations to cut corporate taxes so as to attract MNEs has been
called
a) the gravity model approach to trade
b) the simultaneity problem
c) strategic trade policy
d) comparative advantage in the terms of trade
e) the race to the bottom
15. Which of the following is not an observed response of Multinational Enterprises (MNEs)
to higher corporation tax in one country
a) Lowering wages in that location
b) Internal restructuring to shift profits to lower tax locations
c) Altering investment plans so as to expand into new, lower tax, locations
d) Altering investment plans so as to scale back in the higher tax location
e) Altering investment plans so as to expand in existing plants that are in a lower tax
location
16. Which of the following is not assumed by those who believe in the race to the bottom?
a) Corporate taxes would be at appropriate levels without subsidizing MNEs
b) MNEs are easily induced to relocate by government subsidies
c) FDI has spillover benefits that offset subsidies to MNEs
d) Government subsidies to MNEs will force cutbacks n the social safety net
e) Employment at MNEs involves reduced job security
21. Which of the following is not alleged to be a problem associated with globalization?
a) environmental degradation
b) inefficient production
c) loss of national sovereignty
d) loss of job security
e) inequitable income redistribution
22. In a global environment, governments may need to perform all of the following except
a) restrict industrial pollution
b) enforce antitrust laws to curb monopoly power
c) redirect the allocation of resources to their most effective uses
d) establish social safety nets to offset insecurity
e) adopt international standards for protecting labor and the environment
23. Which of the following provides short term loans of foreign currency to
governments?
a) IMF
b) WTO
c) World Bank
d) GATT
e) Grameen Bank
24. Which of the following is not among the primary operations of the IMF?
a) monitoring governments to determine which are in danger of experiencing a
balance of payments crisis
b) establishing conditions on a country’s economic policies as prerequisites for loans
c) lending funds on a short-term basis to countries in crisis
d) providing technical assistance to governments, to help implement economic
reforms
e) arbitrating balance-of-payments disputes among member nations
25. The IMF has been criticized for each of the following except
a) forcing repayment on short term loans
b) encouraging structural reforms that adversely affect the poor
c) favoring the interests of lenders over those of borrowers
d) interfering in the economies of sovereign nations
e) excluding nations from membership for political reasons
Agassiz, L., 91
Allen, Grant, 142
Aristotle, 6, 14, 51
Avebury, Lord, 131, 141
Fechner, G. T., 85
Flower, W., 93 sq.
Fontenelle, B. le B. de, 138
Fouillée, A., 85
Foy, W., 142
Frazer, J. G., 136, 142
Frere, J., 113
Frobenius, L., 142
Fuhlrott, C., 71, 123
Kames, Lord, 53
Keane, A. H., 91, 95, 108
Keller, F., 119 sq.
Kölliker, 92
Kollmann, J., 19
Knox, R., 53, 107
Lamarck, J. B. A., 57
Lang, A., 137, 139, 141 sq.
Lartet, E., 122
Latham, R. G., 107, 147
Lawrence, Sir W., 16, 55 sq.
Le Play, 152
Letourneau, C., 134
Lindenschmidt, L., 123
Linnæus, K., 20 sqq., 54, 89 sq., 95
Lissauer, A., 123
Locke, J., 110
Lubbock, J. See Avebury
Lucretius, 101 sq.
Lyell, C., 117, 121 sqq.
Saint-Hilaire, E. G., 59
Saint-Hilaire, I. G., 92
Schmerling, Dr., 117