If I am better at all types of production, I have the ______ in all forms of production.
Comparative advantage
Specialization
Absolute advantage
developed nation
Q.2.
Developed nations have all of the following except
better education
high levels of technology
better health
higher populations
Q.3.
The exchange of goods and services by sale or barter driven by the need for resources.
Fair Trade
Globalization
Trade
Standard of Living
Q.4.
To focus on producing one thing to improve productivity is known as:
Specialization
International trade
Absolute Advantage
Supply and Demand
Q.5.
If nations limit trade in of clothing who will benefit?
Domestic Consumers of clothing
Domestic producers of clothing
Foreign Producers of clothing
department stores who sell clothing
Q.6.
Who has the power to create tariffs?
State governments
Federal government
Store owners
Factory owners
Q.7.
In a collection involving payment for an international trading transaction, the principal is the exporter and the drawee is the buyer/importer.
True
False
Q.8.
When the trade involves Al-Wakalah letter of credit, what role does the bank assume in the transaction?
Agent for the importer
Agent for the exporter
Q.9.
What is Purchasing Power Parity?
Is an economic theory that allows the comparison of the purchasing power of various world currencies
Difference between all money flowing into the country in a particular period of time
Societies and countries have differing levels of "development" on an international scale.
None of them
Q.10.
Infant industries can be helped in the world market by giving those industries a
subsidy
quota
embargo
tariff
Q.11.
This is a tax on imports that is used to increase price of foreign products and raise government revenue.
tariff
quota
subsidy
embargo
Q.12.
When determining comparative advantage one must determine
Opportunity cost
Specialization
Absolute Advantage
Embargos
Q.13.
The Nomial Exchange Rate is the relative price of currencies of two countries.
False
True
Q.14.
What is the classical gold standart?
Doesn´t say
An increase of prices over the time
The possibility o an unprecedented event occur that affects asset prices
Was a system in which nearly all countries fixed the value of their currencies in terms of a specified amount of gold
Q.15.
Bretton Woods System states that Each country fixed the value of its currency in terms of gold or dollar and kept its price within a range ofof its parity value
True
False
Q.16.
What is a reserve currency?
An unpredictable event may occur which affects the asset prices
A large quantity currency maintained by major financial institutions to prepare for investments to influence their domestic exchange rate
System created a collective international currency exchange regime
A supply of a commodity not needed for immediate use but available if required.
Q.17.
Which are the sides of the crisis?
Banking Crisis
Capital and Trade Imbalance
Fiscal Crisis
All of the above
Q.18.
The dark matter hypothesis is asking to revisit the question what is actually the true net asset position of a country.
False
True
Q.19.
What are the Trade Imbalances?
A rise of prices over a certain period of time
Societies and countries have differing levels of "development" on an international scale.
Difference between the monetary value of a nation´s exports and imports over a certain time period
I don´t know
Q.20.
What are International Finances?
the trade of goods, services, technology, capital and/or knowledge across national borders
Societies and countries have differing levels of "development" on an international scale.
The study of monetary interactions between two or more countries.
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