b. Japan
c. China
d. Malaysia
ANSWER: d
73. Which of the following nations had the lowest ratio of international trade to GDP in 2018?
a. Hong Kong (China)
b. Japan
c. Germany
d. the United States
ANSWER: d
74. Why do larger countries tend to have lower ratios of international trade to GDP than smaller countries?
a. Larger countries tend to have more trade between states or provinces within their borders than smaller countries.
b. Larger countries tend to have higher tariffs than smaller countries.
c. Larger countries tend to trade with other larger countries.
d. Larger countries tend to have larger trade deficits than smaller countries.
ANSWER: a
75. If a country's GDP is $3 trillion and its trade balance is $0.5 trillion, what is that country’s trade/GDP ratio?
a. $3.5 trillion
b. 16.67%
c. 6%
d. Not enough information is provided to answer the question.
ANSWER: d
76. Suppose that a country has a low ratio of trade to GDP. Which of the following may be a possible explanation for this?
a. The country has low tariffs on imports.
b. The country is geographically distant from the rest of the world.
c. The country is very large and has a high volume of within-country trade.
d. The country produces only agricultural products.
ANSWER: c
77. Which of the following refers to all the factors that influence the amount of goods and services that are shipped across international borders?
a. tariffs
b. trade barriers
c. transportation costs
d. institutional failures and events such as wars and natural disasters
ANSWER: b
78. Between 1890 and 2018, the trade/GDP measure for the United States:
a. decreased almost every year.
b. increased through 1920, then decreased through 1930 and remained low until increasing again from 1960 onward.
c. decreased through 1920, then increased through 1930 and remained high until decreasing again from 1960 onward.
d. remained unchanged.
ANSWER: b
79. What do economists call the factors that reduce the total dollar volume of goods and services sold across international borders?
a. trade factor issues
b. trade barriers
c. trade conditions
d. the ratio of total trade to GDP
ANSWER: b
80. The “first golden age” of trade was:
a. the period from 1864 to 1887.
b. the period from 1890 to 1913.
c. the period between 1919 and 1935.
d. the interwar period.
ANSWER: b
81. One factor mentioned in the text as a reason for the “first golden age” of trade was:
a. the invention of the cotton gin.
b. the invention of the wheel.
c. improved methods of transporting goods.
d. the invention of the computer.
ANSWER: c
82. Which decade of the twentieth century had the highest average tariffs worldwide?
a. 1900–09
b. 1930–39
c. 1950–59
d. 1970–79
ANSWER: b
83. The Smoot–Hawley Tariff Act:
a. was passed in response to World War II.
b. was passed as a reaction to the Great Depression in the United States.
c. was enacted by Germany.
d. greatly reduced the barriers to trade.
ANSWER: b
84. A trade war corresponds to a situation in which trading countries:
a. compete in trading goods and services.
b. stop trading with each other completely.
c. retaliate by increasing import tariffs against each other.
d. ban import transactions between them.
ANSWER: c
85. What was the short-lived import tariff enacted in 1930 that raised rates to an average of 60% on many imports?
a. the Reaganomics principle